Retail executives gathered recently to exchange ideas about cross docking, a process by which store-ready cartons travel through the distribution center (DC) from receiving to shipping with minimal handling and no put-away. Cross docking reduces the amount of labor, real estate and inventory a retailer carries, which contributes to overall operational savings.
Burlington Coat Factory, which presented a case study during the Cross Dock Conference held last month in Newark, N.J., reported that more than 60% of the inventory moving through its DCs is being cross docked. Other retailers participating in the conference included Army & Air Force Exchange Services (AAFES), Cabela’s, Dots, G+G Retail, Kirkland’s, OfficeMax, Tiffany & Co. and Toys “R” Us.
Wal-Mart, Target, Kohl’s and Federated Department Stores, though not at the conference, were identified as cross-docking champions, with as much as 75% to 90% of inventory being cross docked through their DCs.
