•On receiving the goods workers put them in lanes corresponding to the receiving doors.
•A second team of workers sort the goods into shipping lanes from which a final team loads them into outbound trailers.

Benefits of Cross Docking

Advertisement
•Helps to improve the speed of flow of the products from the supplier to the stores.
•Helps to reduce the cost as the labour is removed from the job of storage as well as by eliminating warehousing/storage.
•Helps to reduce the amount of finished goods inventory that is required to be maintained as safety stock.

Constraints of Cross Docking

•Requires a strong IT base and real time information sharing facilities e.g. Bar codes on cartons.
•Appropriate for products with large, and  predictable demands.
•Requires that distribution centres should be set up such that the benefits of economies of scale in transportation can be achieved on both the inbound and outbound side.
•Requires a great degree of coordination and synchronization between the incoming and outgoing shipments which, in turn, relies on better information and planning.
•Product availability, accuracy and quality aspects are critical.
Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
0 Comments

Leave a reply

Your email address will not be published. Required fields are marked *

*

*

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account