Cross Docking vs Break Bulk

Cross Docking vs Break Bulk

Cross-docking in logistics is the practice of unloading materials and inventories from incoming trucks and semi-trailer trucks and loading them into outbound trailers, rail cars and trucks that have little storage space between (Vans, Valckenaers & Cattrysse, 2012). Cross-docking mainly involves unloading incoming materials to change the type of conveyance. Most of the firms also cross-dock to sort materials that are meant for different destinations. For example, in retail operations, grocery products such as fruits can be shifted unloaded from incoming truck direct to outbound trucks that transport them directly to customers. Further cross-docking is done to combine materials from various sources into a single container with materials going to the same destination. Cross-docking began with trucking companies in the United States. Its origin is also associated with the Wal-Mart company retail businesses.  In most trucking company, cross-docking is conducted by transferring cargo from one transport system to another vehicle without warehousing services. It is noted that retailers use utilize staging areas to sort inbound materials, consolidate and store outbound materials until shipments are made.

There are various types of cross-docking such as opportunistic, manufacturing, distributor, transportation and retail cross-docking.  The most common cross-docking is retail, which sorting products from different suppliers and transferring them into outbound trucks. For example, Wal-Mart uses direct freight to minimize warehouse costs and use less time possible to store products. Opportunistic cross-docking entails receiving materials from many vendors and sorting them in outbound transport systems to other retail stores. Transport cross-docking involves combining shipments from various vendors in the less-than-truckload to enjoy economies of scale. Cross-docking has several merits, such as a reduction in labour cost, improve customer satisfaction and reduces the need for a warehouse.

On the other hand, (Bjelland,  Narwicz & Hetmanski, 1977) points out that breakbulk is the act of dividing goods into small quantities to be loaded individually. Such goods are not to be transported in intermodal containers as seen in oil and grain. It involves the extraction of a portion of the products for separate transportation. The extracted part of the cargo may be transported in bags, boxes, barrels or crates. Breakbulk helps in separating products based on consumer’s specifications. The products are sorted and split into orders and arranged in a pattern for delivery. Breaking bulk helps consumers by availing products into small, affordable quantities. Also, when goods are divided into small quantities, customer can access and assess their quality before final delivery. To the retail firms breaking bulk helps in evaluating the quality and amount of goods under shipment.  It allows the firms to ship oversized products that would be difficult to transport in whole. For example, if a large construction firm orders for construction equipment from the United States, then the equipment can be disassembled into various parts for shipments and later assembled after destination. This is also common in the automobile industry where vehicles are transported in pieces and then later reassembled.

From the above analysis, it is clear that cross-docking and break bulking are different aspects of logistics. Despite being used interchangeably, the words refer to entirely different ideas in logistics. As cross-docking refers to the practice of unloading materials and inventories from incoming trucks and semi-trailer trucks and loading them into outbound trailers, break bulking relates to the extraction of a portion of the products for separate transportation.

References

Bjelland, R. W., Narwicz, C. A., & Hetmanski, C. (1977). U.S. Patent No. 4,054,226. Washington, DC: U.S. Patent and Trademark Office.

Van Belle, J., Valckenaers, P., & Cattrysse, D. (2012). Cross-docking: State of the art. Omega, 40(6), 827-846.