Assignment on: Cross-Docking & Value creation

with Supply chain

Submitted to:
Rabiul Hossain Dovash
Lecturer
School of Business Administration

Submitted by:
Name: Shelvey Elmo Dias
Students ID: 191001306
M.B.A 1st Semester
Session: Spring 2019

Submission Date: 7th February 2019

WHAT IS CROSS-DOCKING
It is a form of freight movement by which raw, partial components or finished products from a
supplier or manufacturer are distributed directly to the users. The next level manufacturers or end
consumers are also included here those who have less or no time for storage.

In these figure it shows that in traditional supply chain, Inventory buffer is used to maintain the
flow between supply and demand chains when it’s broken.

In these figure, it show that Cross-docking linked up the two part supply and demand and which
replaces or minimizes the inventory buffer.
Cross docking takes place in the cross dock terminal which is a
small space that consists of the inbound and outbound docks.
Warehouse environment is mostly used for these purpose.
Cross-docking could be thought of as a hub, or spoke and wheel,
network of distribution like many airlines. For example United
Airlines in Guam, Cathay Pacific in Hong Kong both use a hub
and spoke model for their airline logistics.

Advantages and Disadvantages of Cross Dock Solutions

Company decide whether cross-docking is the right fit for its logistics strategy by evaluating
following matter.

Advantages

Material Handling

In these process Terminal, material handling will be streamlined by which efficiency improved.

No Need for Warehouse

Cross dock facility requires less space than traditional one so it is more cost saving.

Packaging and Storing Cost

By using various automation system the packaging and storing cost can be minimized.

Transportation and Distribution Cost

It also reduces transportation cost because the vehicle become full loaded and less transport cycle
occurs. Additionally, as the routing is now optimized (hub and spoke) with the elimination of
unnecessary process.

Products Screened More Quickly

The usage of streamline and automation at the terminals will increase the efficiency of product
screening it will also reduce the time parcel spend in shipment.
Disadvantages

Storage Capacities of the Partner

Cross-docking helps to reduce the cost elimination of warehouse, bit if company’s potential
partner has no space for storage it will become be a problem for them.

Product Damage

Freight handling may jam the system and cause damage amongst product.

Management and Attention Required

Time needed for planning and money to design for it to work effectively. Labor cost is also high
for the moving and shipping of stocks at the terminal.

Late Delivery

If the product is not delivered on time the outbound user need to bear the risk.

Example:

Among many companies Amazon Follows the Cross-Docking to maintain their activities. This is
how they work:

• They receive their product shipments at distribution warehouse. These could come
directly from vendors, or they may come from own warehouse.
• They repack those shipments to fit Amazon’s strict requirements. This may require
simply repacking and rewrapping shipments on the dock, or their team may need to
receive components from several shipments before repackaging them.
• Then they send the newly packaged shipment off to Amazon, so their orders can be
fulfilled on time and successfully.
How to CREATE VALUE IN SUPPLY CHAIN MANGEMENT
Amazon.com has changed the face of retail through its use of bold supply chain strategies and its
deployment of innovative technologies. Some of them are discussed below:

Get products shelf ready. It includes Price marking, tagging, and display building which help
to streamline the process of getting products on store shelves. By using these amazon keeps their
work organized.

Manage inventory more efficiently. Amazon do these step with backend systems providing
data integration across order processing, warehouse and distribution workflows, Amazon can
take an order and initiate shipments in a matter of minutes. By their efficiency they keep their
quality up to the mark.

React faster to changing business needs. Amazon give these facility so that customer can delay
product configuration until the last possible minute to respond more accurately.

Control labor costs. Amazon uses automated solutions and careful review of supply chain
processes, value-added services can help eliminate downtime and reduce the number of touches
required in the packaging process which reduces the cost.

Same day to day delivery. Amazon uses their own delivery fleet direct to consumer so that
customers get the product on the same day. By doing these their customers remain loyal and
satisfied on their services.