Accelerated logistics and reduced effort in logistics - thanks to Cross Docking. This modern logistics system is particularly effective for large orders and is currently being deployed very successfully at Metro Cash & Carry. 
What is the Benefit of Cross Docking for METRO Group?
Cross Docking as a logistics system is particularly valuable if large volumes of goods are required. This applies to Metro Cash & Carry wholesale stores especially. Cross Docking has been implemented in the fresh-goods sector since 1996 and for fish products since 1997.
In the past Metro Cash & Carry had many orders delivered directly. The Cash & Carry sales system, which is comparable to a central warehouse, makes it easy to order goods by the pallet. Over time more and more items have been included in the product range. As a result order volumes per article have decreased. Cross Docking was a compromise between direct delivery and general cargo. Order volumes are still large enough to justify this approach.
In the past Metro Cash & Carry had many orders delivered directly. The Cash & Carry sales system, which is comparable to a central warehouse, makes it easy to order goods by the pallet. Over time more and more items have been included in the product range. As a result order volumes per article have decreased. Cross Docking was a compromise between direct delivery and general cargo. Order volumes are still large enough to justify this approach.
The following diagram visualizes the logistical advantage of Cross Docking compared to general cargo.
Enhancing the Cross Docking System
Metro Cash & Carry currently has regular business relationships with approximately 3,000 vendors. Of these, around 450 manufacturers are involved in Cross Docking. The sales division’s logistics experts intend to convince more business partners in the future that the system is advantageous to both parties and convince more manufacturers to operate Cross Docking. Their objective is to operate Cross Docking with around 150 vendors.
More Technology in the Future
The introduction of new standards and innovative technologies throughout the supply chain opens up new potential for Cross Docking. Metro Cash & Carry has identified that Electronic Data Interchange – EDI significantly accelerates and improves processes between vendor and trading company. However, a lot of manufacturers have not switched to EDI. Message types such as ORDERS and INVOIC are already being applied by about 1,500 suppliers, while the electronic dispatch notification is only being used by about 170 manufacturers. The Number of the Shipping Unit (NVE) is only being exchanged electronically between Metro Cash & Carry and about 70 companies.
Deploying RFID Technology which tracks and traces goods on their way from manufacturer to store could bare new impulses for Cross Docking. Pallets in the Unna terminal would then be recorded at the touch of a button and immediately prepared for transport to stores. The opportunities that these new technologies bare for logistics are under discussion between Metro Cash & Carry and its partners from manufacturing.
Deploying RFID Technology which tracks and traces goods on their way from manufacturer to store could bare new impulses for Cross Docking. Pallets in the Unna terminal would then be recorded at the touch of a button and immediately prepared for transport to stores. The opportunities that these new technologies bare for logistics are under discussion between Metro Cash & Carry and its partners from manufacturing.
