Abstract

Cross-docking is a process that nowadays is used by many companies to manage better their Supply Chain. A cross-dock distribution center is a part of the supply chain where the goods can be unloaded and then they are loaded immediately to the OTs, so there is no storage. The products flow almost directly, or within a short period of time, from the supplier to the customers without being stored. This reduces the overall costs of Logistics, as it has zero or almost zero inventory. To understand this specific process and its importance in the supply chain, we need to understand all the processes. The five main functions of Logistics are: order processing, inventory management, material handling, transportation, and network of facilities. Supply chain and Logistics aim to minimize costs in each of these five operations in order to achieve the overall reduction of the final price. However, cost minimization can be achieved by considering supply chain as an entity. One way for companies to do this is cross-docking. This thesis emphasizes on this function of the Supply Chain. To achieve this, it is necessary to understand the functions of Logistics. Thus, in the 2nd chapter, the Supply Chain Management and Logistics Management and the difference between these two terms will be analyzed. The basic functions of Logistics, as well as its importance for business, customers, society, and the environment, will be explained in detail. Warehouses and distribution centers are an important part of the Supply Chain, significantly reducing transportation costs. In a distribution center the basic functions performed are: upload- receiving, storage, picking orders and loading. For each operation there is a specific space inside the warehouse. The layout of a warehouse is very important, in the flow of processes and products, as well. Thus, when the pick-up area and the loading area are on the same side, we refer to the U-type warehouse flow, while when these processes are in opposite areas, we refer to the I- warehouse flow. All these will be analyzed in the third chapter of this work. Chapter 4 makes an extensive reference to the cross-docking process. This process was developed mainly because of the need to reduce inventory, and thus to reduce costs throughout the supply chain as well as to provide faster customer service. Some advantages of cross-docking are: • cost reduction (storage costs, handling costs) • shortest delivery time (from supplier to customer) • improving customer Service • reducing storage and inventory • reducing the storage time– faster inventory turnover • reduced risk of loss and damage. Primarily, cross docking is preferred for products with a constant rate of demand and low inventory costs. There are many types of Cross-docking within a distribution. There is pure cross-docking where products are received and loaded, or cross-docking of two or more levels. In this type, added value services are carried out. In addition, cross-docking can be characterized by physical, functional and flow characteristics. In the last chapter, a case study will be presented and analyzed in a 3PL company. The analysis of this case study will be based on literature review and will present different ways to work better and the products to stay less time in the distribution center.

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