By using this process, 80% of the goods were delivered on the same day to high-level business centers and the remainder to 20% on the next day. In addition, Grupo Eroski has confronted the task of meeting an increasingly demanding customer base for service in the retail chain of the group.Ĭross-docking is essential for the logistics complex operated by Grupo Eroski: the region devoted to this mission covers 1.48 acres, from which a large amount of orders is being handled. Since the food business carries expired goods, it operates with very near delivery times. Grupo Eroski successfully used the cross-docking formula in its distribution center in Agurain (Álava, Spain). For instance, distributors of computer parts may obtain components from different suppliers and combine them into one customer shipment. The process consolidates incoming items from various suppliers into a mixed product palette that is shipped to the consumer upon receipt of the final item. Since the needs of each component are identified in advance based on the development of an MRP (production resource planning system), a certain amount of inventory is not needed. The warehouse may receive the products and prepare subsets for the manufacturing orders.įor example, a manufacturer may rent a warehouse in the vicinity of its plant and use it to prepare the necessary components for assembly or collection. This process includes the receipt by the production of purchased and inbound goods. Companies will use the method of cross-docking specific to their shipping type. The administration of the warehouse has a range of cross-docking situations. However, cross-docking is only used in the event of a strict on-time commitment to offset any uncertainties associated with the extended lead time. Therefore, when applying the cross-docking form, it saves a large amount of money from storage and the shipment only takes a day or less at the cross-dock before shipping to customers.Ĭross-docking meaning is that there will not be goods available in the warehouse, so instead of taking the goods from the warehouse for delivery, in this field, the goods must be transported from the supplier to the warehouse. In particular, the two stages of storing and collecting orders cost the most. Warehouse operations have 4 main functions, including Receiving, storing, collecting orders, and sending goods. The cross-docking technique significantly reduces distribution costs in logistics. Cross-docking requires harmony and rhythm between receiving and delivery activities. Goods are not stored in storage but are always ready to be shipped to retail stores. The cross-docking definition is a distribution system of goods, whereby goods are received directly at the warehouse or a distribution center.
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