Deconsolidation arrangements, where large shipments (e.g., railcar lots) are broken down into smaller lots for ease of delivery Retail cross-dock example: using cross-docking, Wal-Mart was able to effectively leverage its logistical volume into a core strategic competency. Wal-Mart operates an extensive satellite network of distribution centers serviced by company-owned trucks Wal-Mart's satellite network sends point-of-sale (POS) data directly to 4,000 vendors. Each register is directly connected to a satellite system sending sales information to Wal-Mart’s headquarters and distribution centers. Factors influencing the use of retail cross-docks Cross-docking depends on continuous communication between suppliers, distribution centers, and all points of sale Customer and supplier geography, particularly when a single corporate customer has many multiple branches or using points Freight costs for the commodities being transported Cost of inventory in transit Complexity of loads Handling methods Logistics software integration between supplier(s), vendor, and shipper Tracking of inventory in transit Products Suitable For Cross-docking Perishable goods- These are products that are time sensitive like agricultural products and require instant shipping. Other products that use Last In First Out inventory management method may also apply cross docking. Staple products- Staple products like staple food, clothes always have a high demand and go through a less storage time. Businesses with these types of products may include them in their cross docking model to reduce storage costs. Promotional items- Cross-docking comes in handy for eCommerce platforms that have clearance sale programs. Cross-dock facility design Cross-dock facilities are generally designed in an "I" configuration, which is an elongated rectangle. The goal in using this shape is to maximize the number of inbound and outbound doors that can be added to the facility while keeping the floor area inside the facility to a minimum. Bartholdi and Gue (2004) demonstrated that this shape is ideal for facilities with 150 doors or less. For facilities with 150–200 doors, a "T" shape is more cost effective. Finally, for facilities with 200 or more doors, the cost-minimizing shape is an "X". References Making the Move to Crossdocking, Maida Napolitano and the staff of Gross & Associates, 2000 copyright, www.werc.org Business terms Freight transport