Cross-Docking: What is it and why you should care about it?

Cross-Docking is a hype word in logistics and essentially skips a step to make the product reach the buyer quicker. It doesn’t matter what the product is, it can be raw material, finished products or components destined to factories, stores or final consumers. Cross-docking can adapt to any scenario.

Cross-Docking strategies emphasize on letting the product stay in the warehouse for as a short time as possible following its reception. Therefore, the product does not stay in shipping warehouses for extended periods of time. In fact, that’s where the term comes from: cross-docking merely requires operations to move across the docks, instead of going deep into the warehouse.

Why makes cross-docking relevant?

With the advancement of information systems and applied software for logistics, newer and better-dedicated supply chains are possible. Cross-docking becomes relevant in this context as it’s a key element to connect and coordinate all parties involved: suppliers, warehouse, transporters, and end users.

Cross docking can shorten shipping times and expenses by following its ideal workflow, consisting of:

1. Programming distribution from suppliers
2. Receiving merchandise in the warehouse
3. Registering and checking the received loads as part of the quality control procedure
4. Repacking, order consolidation (if necessary)
5. Merchandise expedition

Cross-docking types

Cross-docking takes place across different cargo units (pallets, boxes, kits, etc.), and there are different ways to organize the different nomenclatures, but after understanding the steps to achieve them, we can find the different types of cross-docking:

1. Pre-distributed: Also known as the most basic form of cross-docking, the supplier prepares and organizes cargo units with the end demand consumers in mind. This reduces the cross-docking operation’s size, as it involves minimal input from warehouse workers for receiving and reshipping merchandise.
2. Consolidated: In this case, merchandise needs to be handled to meet the end consumer’s requirements. Therefore, received cargo units are transferred to a cross-docking or repacking area, where they undergo examination and adjustments according to the necessary requests.
3. Hybrid: This represents a more complex cross-docking operation, involving the preparation of conditioning zone requests using merchandise from both received trucks and the existing warehouse stock. In such cases, received merchandise may be moved to a temporary stock area, rather than going directly to cross-docking. This type also provides greater flexibility and can accommodate a wider variety of shipments, given proper coordination and connectivity between all areas involved in the operation.

1. Cross-docking fits into the Efficient Consumer Response theory, by improving efficiency and productivity within the supply chain. It’s a distribution model that is both quick and affordable, even for smaller companies, as it reduces costs in areas of storage, distribution, inventories, and personnel. This means it can also improve and boost earnings for bigger operations.
2. Reducing storage costs and streamlining handling and stock relocation also decreases the occurrence of human errors. This allows for an improvement in schedule compliance and, ideally, to a happier customer.
3. While all this occurs through an adequate coordination within the docking facilities, it’s important to point out that a cross-docking operation makes this coordination easier. While this may seem unimportant as you see costs increasing in the short term, it surely pays off in the longer term. It also helps reduce the carbon footprint of the whole operation, so everybody wins!

Conclusion

As you can see, cross-docking isn’t a new concept, but many companies have embraced it in recent years to enhance their readiness for supply chain demands. Nonetheless, before integrating it into your package preparation strategy, remember it might not align perfectly with your operation. It has, however, demonstrated success in numerous situations, so some adaptation is needed, and crafting a tailored experience is crucial. This will only be basic to assess how convenient this can be for your company.

One of the best examples illustrating cross-docking is in the food sector. Due to the perishable nature of most non-processed food products, they require swift and efficient distribution. If these products linger too long in a warehouse, they are more likely to become unusable in the short term. Cross-docking allows perishable goods to move directly from production facilities to distribution warehouses, and then promptly to end consumers.

At Go To Truckers, we specialize in dry and refrigerated cargo, primarily serving the food and dry good industry. Our agents have established excellent relationships with companies in Texas, California, Florida, and Georgia, helping them save time and improve the quality of their lives without stress. Do not hesitate to contact us at f.campione@gototruckers.com to take a step towards increasing your productivity.