Cross-docking can bring substantial sav-ings in transportation costs without in-creasing the inventories, while at the same maintaining the level of customer service (Apte and Viswanathan, 2000).

Information about Cross-Docking

Cross-docking is a powerful strategy for supply chain management, as it helps to achieve some of its key objectives: inventory reduction, fixed resource reduction and more flexible and responsive operating systems.

The objective of cross-docking is to combine inventory from different suppliers into one assortment for a specific customer. The strategy is used extensively by retailers for replenishment of fast-moving products and represents an application of the 'active storage' concept. Cross-docking is most appropriate for high-volume, fast-moving products with easily predictable quantities (Bowersox et al., 2007). It is also an appropriate response to another trend in logistics and distribution - the increased product proliferation. Increased product proliferation leads to the decreasing demand for the individual product and increasing variability in individual demand. In such cases, the potential of cross-docking for controlling the logistics and distribution costs, while at the same time maintaining the level of customer service, is particularly useful (Apte and Viswanathan, 2000).

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Related concepts

Reverse Supply Chain / Reverse Logistics

... [A] well-managed reverse logistics system allows the company to retain contact with customers and derive valuable feedback from them (O’Connell, 2007).

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