Cross-docking in Global Supply Chain Management

Cross-docking is a relatively new and extremely effective technique used in global supply chain management. This technique can rapidly consolidate shipments from different sources and reduce the cost of outbound transportation by eliminating the inventory-holding function of a warehouse without hampering its consolidation and shipping functions. An important adjunct to the warehouse management systems now in use in many industries (Hill, Fig.1), cross-docking eliminates several intermediate steps in the warehousing process. Instead of shipments of goods being received, stored, and then shipped out again, cross-docking transfers incoming shipments directly to outgoing trucks without storing them in between, usually transferring them from one truck to another via conveyor ("Cross-Docking Systems," Fig. 2). Shipments usually spend less than 24 hours in the warehouse, and in some cases even less than an hour. Cross-docking is an integral part of the warehouse management system (Hill, Fig. 3). The difference between the traditional stocking/shipping process and cross-docking is simple:

In a traditional warehouse, goods are received from vendors and stored in devices like pallet racks or shelving. When a customer (e.g., the consumer or perhaps a retail outlet) requests an item, workers pick it from the shelves and send it to the destination. In a crossdock, goods arriving from the vendor already have a customer assigned, so workers need only move the shipment

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