11 Jun 2022

415

Cross Docking vs. Break Bulk

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Academic level: College

Paper type: Essay (Any Type)

Words: 540

Pages: 2

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Differences 

Cross docking involves the direct distribution of products from suppliers or manufacturing facilities to customers or retail stores with limited to no handling time. On the other hand, break bulking entails the consolidation of several orders at a manufacturing facility, with the products being sent to a warehouse where they are split into individual orders and distributed. Break bulking involves one supplier, while cross docking entails multiple manufacturers. 

Processes 

Cross docking occurs in a distribution docking terminal and typically comprises trucks and dock openings on the inbound and outbound sides with limited storage space. Products are received through an inbound dock then later transferred to the outbound transportation dock. Once the inbound transportation docking is complete, the inbound products can be transported directly or indirectly to the outbound locations. The products can be unloaded, sorted, and examined to identify their final destinations. After sorting, the products can be transported to the outbound dock via pallet trucks, forklifts, or conveyor belts (Sople, 2012) . When the outbound trucks are loaded, the products can then be transported to customers. Cross docking can enhance the supply chain of specific products such as food which are typically temperature controlled. Such products need to be transported as quickly as possible to avoid losses, and cross docking allows manufacturers to meet this objective given that there is limited to no handling time. In addition, the process of transporting packaged and sorted items can be made efficient through cross docking. Cross docking is beneficial since it enables the movement of fully-loaded trucks from the manufacturers' facilities to the warehouse and from the warehouse to retail chains (Sople, 2012) . This process decreases handling expenses at the cross-dock facility, given that products are not stored. Moreover, there is a more effective use of the docking facilities since all trucks are fully loaded hence maximizing loading dock utilization. 

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In break bulking, various orders are combined at a manufacturing facility or central warehouse. The orders are split and later warehoused for transportation to individual customers depending on their requirements. The items can also be warehoused until customer orders are received. The distribution of the orders is made to local, regional, or overseas destinations. The items to be distributed to customers are typically loaded individually rather than in intermodal containers. Break bulking is beneficial since it allows logistics companies to transport oversized products instead of splitting them into smaller shipments (Bichou, 2014) . In addition, hazardous material can be kept separate from other products during transportation through break bulking. Long-distance transportation reduces transportation costs and reduces difficulties in tracking. 

Examples 

Retail chains such as Wal-Mart and Costco make use of cross docking to replenish their fast-moving store products. Fully loaded trucks arrive at the retail chain stores with a variety of products from multiple manufacturers (Hill, 2012) . The cross-dock facilities receive the various retail goods and sort them. The goods from the various manufacturers typically have labeling that identifies the customers who should receive the goods. 

Construction companies such as McDermott International and Skanska USA typically order large construction machines from overseas countries. Such equipment is transported from the single manufacturer to the breakbulk warehouse or terminal, where the individual orders are split and sorted. In this case, each company is able to receive the equipment it orders in one piece since the machinery is never disassembled. Notably, such companies are able to save on time and cost when their orders are shipped in one piece. Moreover, the equipment can be more easily tracked compared to when there are numerous parts due to disassembly. 

References 

Bichou, K. (2014).  Port operations, planning, and logistics . CRC Press. 

Hill, A. V. (2012).  The encyclopedia of operations management: a field manual and glossary of operations management terms and concepts . Ft Press. 

Sople, V. V. (2012).  Logistics management . Pearson India. 

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StudyBounty. (2023, September 14). Cross Docking vs. Break Bulk.
https://studybounty.com/cross-docking-vs-break-bulk-essay

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