An Approach for Assessing Savings from the Restructuring of the Cross-Docking Process

The growing complexity of operations and logistics has pushed companies, especially large ones, to enhance their efficiency and performance evaluation, ensuring streamlined processes and cost-effective management. This study explores the optimization of internal distribution processes within companies by implementing a cross-docking (CD) system to enhance efficiency and speed. The CD is a distribution method for shipping materials to an intermediate cross-dock facility before reaching their final warehouse destination. This research specifically examines an alternative cross-docking approach to address inefficiencies in a company based in England. Materials undergo a double inspection, initially at the point of intermediate receiving and again at the final destination, leading to increased lead times and operational inefficiencies. By eliminating the initial, redundant inspection, and keeping that information in the system, the process can be streamlined, potentially reducing lead times and enhancing overall efficiency. Simulations of the current and proposed processes were conducted to evaluate the impact of these changes. The "to be" approach serves as an assessment of the savings resulting from the restructuring of the cross-docking process. The results indicate that reducing the time allocated for quality checks from 72% to 68% saves 47 minutes. This time savings allows for the reassignment of workers to other logistical tasks, improving operational flexibility, or it can lead to the reduction of one worker. As a result, workload distribution is optimized, enhancing lead times, efficiency, and cost-effectiveness.