THE SUCCESSFUL CROSS‐DOCK BASED SUPPLY CHAIN

A supply chain using the cross‐dock approach can speed goods from upstream suppliers to downstream customers quickly and cost‐effectively, with benefits to the entire chain, if the appropriate type of cross‐dock is chosen and then designed, staffed and managed for effective performance. Unlike a warehouse, which offers storage, a cross‐dock is a high performance rapid transit point that does not provide storage. Although cross‐docks have been studied with some thoroughness, what has not been seen clearly is that a cross‐dock does not operate in isolation and therefore can't be optimized independently from the upstream and downstream processes. To be successful, cross‐dock optimization makes demands for high performance on all members of the supply chain in terms of speed, effective planning, high reliability, near error‐proof processes and a high degree of transparency, visibility and information‐sharing; accordingly, the article refers to this integrative perspective as a “cross‐dock based supply chain.” To make clear this interdependency between the cross‐dock and the chain based on it, a new definition that classifies types of cross‐dock based supply chains is offered. To assist scholars analyzing and industry management choosing a cross‐dock approach, cross‐dock based supply chains are classified as falling into three different types. Lastly, based on field work in industry and on literature review, nine critical success factors for cross‐dock based supply chain operations are offered.