Thanks to improvements in communications and information systems used in logistics chains today,
shipments can be expedited . Good proof of this is
Cross Docking , a concept that is very fashionable and is increasingly used by many companies. Let's find out a little more in detail exactly what Cross Docking is.
What is Cross Docking?
Cross Docking is a logistics activity through which the goods are sent directly to the user without having to go through a prior storage period. One of the
main advantages of Cross Docking is that this type of shipment is suitable for any type of goods.
In this way, Cross Docking can be applied to both raw materials and finished products, including products that go to factories or to a physical store. This way of understanding shipments
allows us to avoid certain activities subject to traditional shipments , such as
picking .
Since the goods in question are not stored, they do not need to be placed on shelves. With this understanding, it is much easier to understand the meaning of the term in English,
cross docks , that is, the goods simply pass through the warehouse docks without ever being stored there.
How does Cross Docking work?
In a traditional supply chain, the warehouse is an important part of it. Basically, the warehouse is what
connects suppliers with their customers, since it is where the goods are stored until the demand for the product is met. This causes a
discontinuous flow , that is, the good does not leave the warehouse until it is demanded and it rests in the warehouse until said demand increases.
Cross docking is based on the opposite approach and it is not easy to achieve it, you have to be
very coordinated . However, as we mentioned at the beginning of the article, thanks to the
implementation of new software within these logistics chains, the processes become much
faster and it is not necessary for the goods to remain in the warehouse, they are distributed directly.
Types of Cross Docking
There are three different types of Cross Docking: pre-distributed, consolidated and hybrid. We will explain them in more detail on the
Línea Gráfica blog.
The
pre-distributed type is the most
basic model. In this type of Cross Docking, it is the supplier who is mostly responsible for
preparing and organizing the loading units taking into account the final demand. In this type, the operation is simply limited to
receiving the merchandise and
sending it out without the warehouse worker having to intervene in the least, which
speeds up the process even more .
In the
consolidated type, the goods are already handled. In this type of Cross Docking, the goods have to be adapted to the requirements of the end customer. For this reason, the goods have to be taken to a
special conditioning area or a Cross Docking zone where the order is adjusted to the demand. To give an example, we would be dealing with a
special delivery made up of a batch of different products that are on different pallets. In these cases, the goods are divided and adjusted to the special order.
Finally, there is
hybrid cross docking . This is the most complex type of cross docking, as it involves preparing the order in the aforementioned conditioning area, from the truck and also with part of the order stored in the facility itself. Although it requires
greater coordination , it ends up being the
most flexible model of all due to the ease with which it adapts to each operation.
Cross Docking: Advantages and Disadvantages
Cross Docking has a
lot of advantages and also some disadvantages, let's see.
One of the most obvious advantages is the
space we save when storing products . Although we need a small area where we can handle the products, if necessary, we will not need a large warehouse to store them since it will not be necessary. This allows us to
save on costs by not needing that space.
Cost savings also occur in terms of labor, since we will not need labor to store, load or inventory products. On the other hand, there is also
a saving in time , since intermediate tasks such as
picking or the aforementioned storage are eliminated. Thanks to this,
delivery times are saved , so
the product reaches the customer sooner .
The main disadvantage of cross docking is that it is not something that is so easy to implement. For it to work well, it requires the
effort ,
synchronization and
good work of many people . Fortunately, there are many
management softwares that help in the process since the planning must be adequate for cross docking to work.
Cross-Docking Examples
Due to the nature of cross docking, it is
perfect for a wide range of products . Products that usually work best with cross docking are
perishable products . Products such as fruit, meat or dairy products can spoil or lose their properties if stored for a long time.
These essential products are in
high demand , which also makes cross docking easier. In this way, the high demand for products also makes it possible to have cross docking for these, for example, pharmaceutical products, spare parts or simply the press that is consumed every day. Any product that does not need to be stored, either because it rotates a lot or because it is not possible, is a perfect product for using cross docking.