Cross-Docking Technique in Logistics
Cross-docking is an effective technique utilized in distribution centers and warehouses, to speed up the order fulfillment process. This practice in logistics make the incoming stocks transferring directly into the shipment without connecting warehouse. This eliminates the need to store products, and thereby saves the overall time to a great extend. The incoming items are likely to remain on the site for a maximum of 24 hours, but mostly leaving in a much shorter time.
The image given above tells you a clear explanation of how Cross-Docking brings a benefit in terms of effort and time. To operate an efficient cross-dock process, a good information technology system is a must. Goods need to be identified easily at the inbound stage to enable staff to move them directly to the dispatch or shipping area as opposed to the storage area. Advantages of Cross-Docking:
First level of production until sales will be streamlined
Less effort thereby less labor costs
No inventory holding costs since no warehouse is used
Product movement from manufacturer to the distributor, and consequently to the customer, become faster
Less risk of inventory handling
Less paper jobs
WMS-lite.com has the feature of cross-docking. The time in the warehouse can be charged (storage) or not charged at all - A location called "Cross-Docking" can be created to move the goods in a very short timeframe as described in this article.