Cross-docking is a logistics practice that involves unloading materials from a manufacturer or mode of transportation and delivering them directly to a customer or another mode of transportation, with little or no storage in between. Cross-docking can be used to change the type of conveyance, sort material intended for different destinations, or combine material from different origins into transport vehicles or containers with the same or similar destinations. Cross-docking can be broken down into two basic types: pre-distribution and post-distribution. In pre-distribution, goods are unloaded, sorted, and repacked according to predetermined distribution instructions, while in post-distribution, goods are sorted and consolidated after they have been received from suppliers.
Cross-docking takes place in a distribution docking terminal, which usually consists of trucks and dock doors on two sides with minimal storage space. Cross-docking minimizes handling times and maximizes efficiency, which can lead to several benefits, including reduced inventory costs, improved delivery times, increased accuracy, and better responsiveness. Cross-docking works best with products that need to be transported quickly, such as food, that have already been sorted and labeled for customers, do not need quality inspections, or have steady demand.
A cross-docking facility is a type of sorting center with minimal storage space, where goods that arrive are quickly sorted according to inbound and outbound shipments and then immediately shipped out, often within 24 hours. Cross-docking is a lean supply chain model that involves the immediate or faster transfer of finished goods directly from suppliers or manufacturers to customers or retailers with little to no handling or storage.
