SUPPLIER ENABLEMENT: THE KEY TO CROSS-DOCKING

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					 logistics hubs




suppLier enabLeMent:
tHe Key to cross-docKing
For the supply chain director, the art of keeping inventory to a minimum, store shelves full and online orders
fulfilled rapidly, has always proved to be something of a Holy Grail. Cross-docking or flow-through, the
practice of receiving goods at a warehouse and then shipping them out again without first storing them in
the DC, is a technique aimed specifically at operations where maximum service levels and minimum inventory
holdings are a top priority. It is not a new idea, but with the increasing availability of advanced technology and
the relentless rise in consumer expectations, it is experiencing a new revival in popularity. An industry survey
published earlier this year by US logistics provider, Saddle Creek, revealed that more than half of the 547
respondents were already using cross-docking, with a further 13% actively planning to do so.


F          or a company thinking of implementing a cross-docking
           strategy, the process can be perfectly straightforward once
           the right systems and processes are put in place. However,
it is important to recognize that many of the necessary changes
will rely on co-operation from suppliers. a cross-dock will be just
                                                                             their primary method of communicating order status, with a further
                                                                             28% relying predominately on telephone, fax or customer service
                                                                             representatives. although the past 3 years have brought about some
                                                                             changes, there are still many companies for whom integration with
                                                                             customers’ IT systems is simply an abstract concept. a supply chain
as useless if a supplier is unable to provide the goods on time as it        initiative that requires the sending of advance Shipment notifications
will be if the outbound transportation provider is not in position and       (aSns) and compliant barcoded shipping labels, therefore, may
ready to receive the goods on the other side of the docking station.         require some adjustment to the way they do business.
Speed is the essential factor, so suppliers need to be equipped                 When deciding on the system you will use to manage your cross-
to communicate electronically with their customer’s supply chain             docking operations, you need to take this into consideration. Make
management system. unless they are already operating at a high               sure that you are developing or implementing a flexible system
level of IT sophistication, this may necessitate some substantial            that will adapt to their technological capabilities as well as their
changes to the way they do business.                                         business processes. Most retailers and wholesalers will find that
    It is not surprising then, that one of the first hurdles faced by some   there is a wide range of diversity in the technological capabilities
cross-docking projects is concern from suppl
				
DOCUMENT INFO
Description: For a company thinking of implementing a cross-docking strategy, the process can be perfectly straightforward once the right systems and processes are put in place. However, it is important to recognize that many of the necessary changes will rely on co-operation from suppliers. A cross-dock will be just as useless if a supplier is unable to provide the goods on time as it will be if the outbound transportation provider is not in position and ready to receive the goods on the other side of the docking station. When deciding on the system you will use to manage your cross-docking operations, you need to take this into consideration. Make sure that you are developing or implementing a flexible system that will adapt to their technological capabilities as well as their business processes. Most retailers and wholesalers will find that there is a wide range of diversity in the technological capabilities of their suppliers.
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