Crossdocking sortation systems are ideal for stockless DCs. In Crossdocking operations, goods flow directly from receiving to shipping without putting them away and later picking them.
Crossdocking is the ultimate dream of any distribution center
Crossdocking is the ultimate dream of any distribution center, since the inventory keeps moving and the high cost of order fulfillment subsystems are minimized. Whatever comes in each day, get processed and ships to the stores by the next day and more often, the same day. Furthermore, the longer products sit in a warehouse, the more there is potential for shrinkage or damage. Crossdocking’s greatest advantage is labor savings.
Labor cost per carton has the potential to drop dramatically
The labor cost per carton has the potential to drop dramatically. One retailer’s cost of handling a carton went from $1.40 per carton to $.14 per carton when crossdocking and ASNs were implemented. In addition, crossdocking has proven to take time out of supply chain operations. Finally, cross-docking has been known to increase store replenishment accuracy.
Crossdocking has many benefits, such as:
- No need for putaway to stock
- No picking locations or replenishment needed
- Receiving process may be automated, through bar-code scanning or RFID
- Goods in may be direct from truck, or via ergonomic or automated depalletizing
