All You Need to Know - Cross-Docking
What is Cross-Docking?
Cross-docking in trucking refers to the practice of unloading goods from an incoming shipment directly onto outbound trucks, with minimal or no storage time in between. This method is designed to streamline the supply chain, reduce storage costs, and speed up the delivery process by transferring products from one vehicle to another almost immediately after they arrive at a cross-docking warehouse.
How Does it Work?
Arrival of Goods:
Products arrive at a cross-docking facility via inbound trucks. These products can be from various suppliers or distribution centers.
Unloading:
The incoming trucks are unloaded at the dock. The goods are sorted based on their destination, which may be specific retailers, distribution centers, or other locations.
Sorting and Consolidation:
The products are organized based on their final destination. This step may involve consolidating goods from different shipments that are headed to the same location. Some cross-docking systems use automated sorting systems, while others rely on manual labor.
Repacking (optional):
In some cases, goods may need to be repacked or reconfigured into different pallets or containers for easier distribution to their end destinations.
Loading onto Outbound Trucks:
Once sorted, the products are quickly loaded onto outbound trucks. These trucks are generally scheduled to depart the facility soon after the sorting process is complete.
Transportation to Destination:
The outbound trucks deliver the goods to their final destinations, such as retail stores, warehouses, or directly to customers.
Why Should You Do It?
- Storage Costs are less since they are not in the warehouse for long
- Delivery is faster as you are unloading and loading quickly to the customer
- Inventory remains at a minimum as the supply chain for transferring of goods becomes quicker
- Lesser handling costs since you are not using your own labor and material handling
