Direct Shipment vs. Cross Docking

The globalization of production and service enterprises increased the complexity of supply chain systems and processes. The complexity of supply problems leaded to the development of new shipment strategies. The optimal design of supply chain is an important success factor of the economical operation of enterprises. Within the frame of this paper the author compare the costs of the direct shipment and the cross docking supply from the point of view of all members of supply chain. Cross docking is a supply process, in which products are unloaded from inbound transportation vehicles and loaded into outbound transportation vehicles. Depending on the structure of cross docking process, additional logistics operations (storage, packaging, building loading units, etc.) between unloading and loading can be realized. The author analyses and compares both shipment strategies by the aid of cost functions.