Consumer and market trends

What is cross-docking? How it works and types

Cross-docking, a key strategy for warehousing and logistics services, has revolutionised the way goods are handled. This method, which involves receiving goods at a loading…

On February 23, 2024

Cross-docking, a key strategy for warehousing and logistics services, has revolutionised the way goods are handled. This method, which involves receiving goods at a loading dock and sending them directly to the shipping area without storing them, optimises the supply chain by reducing time and costs. In this article, we will explore what cross-docking is, how it works and the different types that exist, as well as the relevance of having a reliable logistics partner, such as FM Logistic – integrated logistics operator, to maximise its effectiveness.

How do cross-docking operations work?

Cross-docking is a logistics strategy that optimises the goods distribution process by reducing storage in the warehouse and minimising the time products spend in the warehouse. This method involves receiving goods at a loading dock and sending them directly to the shipping area without storing them in the warehouse.

Phases of cross-docking

Receipt of goods: Products are received from suppliers or transferred from production areas.

Classification: Products are identified and classified according to their final destination.

Fast transfer: Products are quickly transferred to the shipping area for delivery.

Types of cross-docking

There are different types of cross-docking that are adapted to the specific needs of each company.

Pre-distributed cross-docking

Predistributed cross-docking is a logistics method that involves combining products from multiple suppliers into specific outbound shipments before they arrive at the cross-docking facility. This approach allows for more accurate shipment planning and more efficient distribution of products, while reducing the costs associated with warehouse storage and handling.

Consolidated cross-docking

Consolidated cross-docking consists of receiving products from multiple suppliers and combining them into general outbound shipments. This technique offers greater flexibility in order management and optimisation of resources by reducing storage time in the warehouse and speeding up the distribution process to final destinations.

Hybrid cross-docking

Hybrid cross-docking combines elements of both pre-distributed and consolidated cross-docking. This approach allows both advance consolidation of products into specific outbound shipments and real-time consolidation on an as-needed basis. This flexibility makes it an attractive option for companies with varying demands on their supply chain.