Cross-docking - Typical Applications

Typical Applications

• "Hub and spoke" arrangements, where materials are brought in to one central location and then sorted for delivery to a variety of destinations
• Consolidation arrangements, where a variety of smaller shipments are combined into one larger shipment for economy of transport
• Deconsolidation arrangements, where large shipments (e.g. railcar lots) are broken down into smaller lots for ease of delivery.

Retail cross-dock example: Using the cross-dock technique, Wal-Mart was able to effectively leverage their logistical volume into a core strategic competency.

• Wal Mart operates an extensive satellite network of distribution centers serviced by company owned trucks
• Wal Mart’s satellite network sends point of sale (POS) data directly to 4,000 vendors.
• Each register is directly connected to a satellite system sending sales information to Wal Mart’s headquarters and distribution centers.