WHAT IS CROSS-DOCKING?

Cross-docking has gained popularity over the years. We are talking about a technique that has allowed logistics to save time and costs in terms of storage. Here we explain what it consists of, its advantages and types.

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What is involved?

Cross-docking is a technique that allows products to be received at a distribution center, and at the same time loaded onto the means of transport that will take them to the different points of sale, or even to the final customer, without having to go through an intermediate storage process.

In addition to saving time by simplifying processes, companies avoid the costs of storing and preserving products while they are in storage.

The goal is to ensure that goods are never left in storage, but this is a major challenge. Companies that use the cross docking technique in their logistics processes must have excellent coordination between manufacturer, distributor and customer.

We can summarize cross docking as the technique used in logistics where activities such as reception, classification and redistribution of products must be carried out in a period no longer than 24 hours.

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When to use it?

Although it is a technique that every supply chain would like to use, it is not suitable for all types of industries.

Mainly products without preservatives or those that need to be transported at a controlled temperature are not suitable to go through a cross docking process, since different items are consolidated in the same means of transport to be sent to a destination and each of them requires a different temperature.

Sectors such as textiles, pharmaceuticals, automotive, supermarkets and courier companies are the main users of this technique.

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Types of cross docking

There are different classifications according to the author, however the most common classifies cross-docking in direct and indirect.

Direct: It is considered as direct cross-docking when the goods are already separated (from 2 or more different suppliers) and the only thing to be done is to receive and position them in the different outbound sections.

Indirect: It is considered as indirect cross-docking when the goods must go through a picking process to be separated (since they come from the same supplier) and be sent to the different outbound sections.

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Advantages

• Gain efficiency in transportation management.
• Cost savings related to storage and conservation of products.
• It represents a contribution to the environmental impact, minimizing the energy impact by saving the storage process.
• Accelerates the flow of products, allowing them to reach their destination as soon as possible.
• Reduction of risks such as damages or losses that may occur while the goods are in storage, since it reduces the time the goods are in storage.

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To summarize, we can say that this technique used in logistics brings great advantages to the supply chains of companies, as long as there is proper coordination between the various actors.