Increased speed and productivity continues to be imperative for the supply chain and an important factor for growth within organizations. Cross-docking is a strategy that can be implemented to achieve the competitive advantage by providing improvements in efficiency and handling times.
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What is cross-docking?
Cross-docking is a logistical practice of transferring materials from an incoming semi-truck or railcar directly into an outbound vehicle. As the products spend no time being stored, shipping costs are reduced and inventory costs are minimized.
Since cross-docking does not require the inventory to be stored at the warehouse, it provides these advantages:
- Operational efficiency: as the material does not have to be stored at the warehouse, it directly moves from the receiving docks to the shipping docks or staging areas. Warehouse operations become more efficient.
- Inventory efficiency: as the inventory moves directly form the receiving to shipping docks, there is no storage at the warehouse for the cross-docked items and that reduces the total system inventory in the supply chain.
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The Cross-Docking Process
The process of cross-docking is fairly straightforward. First the supplier receives an order, which may supply several store or locations. The suppler sends an advance ship notice (ASN) to the distributor when products are available. The ASN describes what is being shipped before the projects arrive at the distribution center. The warehouse management center determines how to handle the incoming products. The products are then directed to the outbound door in order to ship to the customer. They can be directed to another trailer for a combination of products from other manufacturer or stored temporarily.
The products are shipped, received at the distribution center, and unloaded. The bar code information is scanned and verified against the information provided from the ASN and then loaded.
The ASN is key to ensuring the process is fast and accurate. It provides distribution centers and/or warehouses with the information they need for advanced planning of the shipping and receiving of items. Without the data, cross-docking would not be effective.
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Optimizing EDI ASN and Cross-Docking
Efficient cross docking requires EDI Purchase Orders (850) and ASN’s as well as bar code labeled cartons.
ASN’s sent via EDI are essentially electronic packing slips. ASN’s from suppliers support distribution center visibility into inbound shipments and support planning of receiving staff, allocation of receiving docks, and arrangement for out-bound trailers. You can learn more about ASN’s by reading our blog post on the topic or watching our video.
ASN’s in conjunction with UCC bar code labels enable automated scanning, sorting, and movement of cartons from receipt at the unloading dock, through the distribution center’s system of conveyer belts to the outgoing loading dock. The ASN’s and UCC carton labels will be used again by the receiving dock at the final destination store.
Would you like to learn more? Contact Data Communication Solutions (DCS). We will assist you in getting the most out of your EDI and ASN processes.
To learn more about logistics, check out SCM EDU’s logistics glossary at https://scmedu.org/logistics-glossary/.
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