Cross-docking what is it, types and advantages

Cross-docking: what is it, types and advantages

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Cross-docking is a logistics technique where storage time is non-existent or very limited.

As we know, cross-docking allows us to reduce time and costs, how is it possible? All you have to do is transfer shipments from the means of transport in which they arrive at the means of transport in which they leave without intermediate storage.

This distribution technique seeks greater efficiency in the entire supply chain, involving customers and suppliers.

For this reason and to carry out cross-docking, it is important to synchronize the storage and distribution of the merchandise through the following activities:

  1. Pre-distribution. Suppliers prepare the goods to be distributed.
  2. Receipt of the merchandise.
  3. Information capture. Necessary for good control over the merchandise.
  4. Re-packing, cargo consolidation, and merchandise delivery.

Types of Cross Docking

Within this process, there are two variants, pre-distributed cross-docking and consolidated.

Predistributed cross-docking

In predistributed cross-docking, the units to be marketed are already organized by the provider according to their delivery points, therefore they are received and moved to the exit points, (the place where they are with units similar to different suppliers) ready to be shipped.

This model is the most basic to apply since the units do not require any additional handling.

Consolidated

In consolidated cross-docking, the logistics units are received and immediately sent to a conditioning area within the CEDI (Distribution Center), in which they will be organized into new logistics marketing units to be sent to their respective points of sale. destination.

This strategy is frequently used to put together offers for products that will be sent to chain stores or department stores.

Finally, it is important to note that both types of cross-docking provide great benefits: increasing the speed of product flow, reducing handling costs, promoting productivity, and reducing space requirements.

Advantages of cross-docking

Cross-docking has many advantages, among which are:

  • It’s one of the strategies that can be framed within the Efficient Consumer Response philosophy.
  • It manages to improve efficiency and productivity within the supply chain.
  • It is an especially fast and profitable distribution model.
  • allows having an interesting cost reduction in storage, distribution, inventory, and personnel.
  • By reducing stocks, facilitates the task of handling and relocating merchandise, achieving fewer errors.
  • Get a greater freshness of the merchandise and increase its availability.
  • Facilitates meeting deadlines, which is a great advantage for the client.
CEOs, Singapore, supply chain

CEOs of Singapore worry about supply chain

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Almost 72% of Singaporeans CEOs have re-evaluated their firms’ purpose to address stakeholders’ needs.

The CEOs of Singaporean companies are most concerned about supply chain risk and a return to territorialism as the top threats to their organizations’ growth over the next three years, according to a KPMG report.

Given the country’s open economy, supply chain risk, and territorialism rank as the two top threats to businesses whereas in the global environment, talent risk took first place.

Almost three-fourths (72%) of CEOs in the State-City say that they re-evaluated their company’s purpose in order to better address the evolving needs of their stakeholders whilst 80% want to lock in the climate change gains they have made during this period.

They have also become more conservative than CEOs globally, with less than a quarter (24%) expecting to see their company’s earnings grow at more than 2.5% yearly over the next three years.

On the other hand, they have also heavily invested in technology during the lockdown period, with seven in 10 (72%) seeing their new digital business models accelerate during the pandemic. The biggest advancements have been in the digitization of operations and the creation of a next-generation operating model, where 56% say that progress has put them years ahead of where they would have expected to be right now.

Almost two-thirds (64%) are likely to put more capital investment into technology than people.

CEOs plan to improve ESG

In addition, 72% stated that they have had to re-evaluate their organizations’ purpose as a result of the pandemic, and 80% saying they feel a stronger emotional connection to their organizations’ purpose since the crisis began.

Mitigating climate risks have also evolved into a personal responsibility as 60% feel that their ability to manage climate-related risks will impact their role in the organization, ultimately determining whether they keep their jobs over the next five years.

This development has put ESG near the top of the agenda for CEOs in Singapore and 72% of them have shifted their focus towards the social component of ESG.

Singapore Boosts a Blockchain-Based Food Safety System

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Singapore Food Agency and VeriTAG promote a Food Safety System based on Blockchain Technology.

The Singapore Food Agency and VeriTAG seal a strategic alliance for the creation of a Comprehensive and Transparent Food Safety System based on Blockchain technology.

This initiative is intended to address food safety issues in the food supply chain in Southeast Asia.

The System will have a social impact

This system uses the enterprise open source adaptive blockchain platform from NULS and TradeTrust, provides the possibility to develop a cloud-based tracking network.

“This association shows that Blockchain technology can truly be a conduit for social good and demonstrates the wide range of business use cases,” they point out in the joint statement.

As part of this alliance VeriTAG presented VeriHUB, a Blockchain platform for the export of food, in charge of guaranteeing transparency from the manufacture of the food, to its sale with Veri$HOP.

The latter is a Blockchain-enabled loyalty program.

This joint project is expected to be presented at the Smart China Expo, next September.

How does the system guarantee food safety?

The consensus node in the NULS blockchain will allow VeriTAG to take advantage of the immutable data book.

And in turn, generate participation rewards, to keep the monitoring system active on the network.

Incentives by VeriTAG are loyalty credits awarded for scanning VeriTAG seal labels.

These tokens are exchangeable in the native wallet of the applications for NULS tokens, and can subsequently be converted into Singapore’s digital currency.

Currently Singapore exports 90% of its food products, it is for this reason that the Food Agency of the city-State pays special attention to the quality of the products.

With the impulse of this project, it will be possible to determine when an imported product does not meet the required food safety standards.

World map with logistic network distribution, Logistic and transport concept in front Industrial Container Cargo freight ship for Concept of fast or instant shipping, Online goods orders worldwide

Supply chains and the adoption of Blockchain technology

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With all the changes generated in global trade as a consequence of Covid-19, the adoption of Blockchain technology to improve supply chains is imminent.

The Covid-19 pandemic continues to threaten public health, as the world’s economies experience major changes in consumer behavior, patterns, and trade flows.

Faced with this uncertain panorama, importers and exporters are struggling to rethink global trade processes, as well as supply chains.

A situation that contrasts the increase in consumer expenses on certain goods, demand for food, medicines, chemicals and cleaning products.

Due to the uncertainty surrounding COVID-19, supply chain leaders must mitigate disruptions and risks to position their organizations for success through flexibility, creativity, and automation.

That is why in today’s environment, technology plays a fundamental role in managing the entire value chain, anticipating risks and challenges.

Blockchain technology adoption

Companies can leverage data from supply chains to detect inefficiencies, automate decision-making processes, and improve the customer experience.

In this context, the adoption of Blockchain technology continues to increase, with the purpose of empowering, supporting, and eventually automating commercial operations.

According to a Gartner report on Blockchain technology from last year, Blockchain technology will generate more than $ 176 billion in business value by 2025 and $ 3.1 trillion by 2030 worldwide.

Advantages of using Blockchain technology

It provides a more efficient and stable mechanism for tracking data in complex supply chains.

In this way, it increases efficiency and allows human errors to be reduced, as well as allows establishing responsibilities within the chain.

Blockchain technology allows to provide a safe custody of the Items as they move along the chain.

In addition, it significantly reduces the cost of products in transit due to lower documentation costs.

Singapore bets on a Blockchain-based economy

Blockchain Association Singapore, is an initiative that seeks to establish itself as the central nerve of the use of scalable technologies in the city-state and in the world, helping to build a new digital economy.

Dozens of companies already carry out Blockchain activities in Singapore, allowing the country to position itself as a global center in the implementation of this type of technologies.

With the push of the Blockchain Association Singapore, companies operating or entering Singapore will find it easier to take advantage of Blockchain and other scalable technologies to grow and transform their business.

Singapore increases use of blockchain technology in supply chains

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Amid the global crisis generated by the spread of Covid-19, an increasing number of large and medium-sized companies in Singapore are promoting dozens of programs based on blockchain technology to boost their supply chains.

“We see an acceleration of digitalisation in Maritime Singapore, which has improved productivity and efficiency of the sector,” said Quah Ley Hoon, executive director of the Singapore Maritime and Port Authority.

“Blockchain has tremendous potential applicability in areas such as bills of lading, cargo-tracking and trade financing,” added Hoon.

In this context, the World Economic Forum considers the adoption of this technology important to generate a global economic impetus after the pandemic.

A recent report by the agency examines how the deployment of blockchain-based solutions can cope with supply chain inefficiencies and failures that the COVID-19 pandemic has revealed.

The document also emphasizes a series of recommendations with the aim of offering help to governments and companies to adapt their supply chains to the current economic landscape.

Research published April 28 claims that, the resilience of private and public supply chains has been tested amid the coronavirus outbreak; supply chains of pharmaceutical products, medical supplies and foods are mentioned among the most affected sectors.

The report argues that the efficiency of supply chains depends on transparency, and the adoption of distributed ledger technology (DLT) is advocated to create a “common truth” among stakeholders in the supply chain.