What is cross-docking?
Cross-docking is a logistics technique used to optimize the distribution and storage of merchandise; the product remains in the warehouse for a very short time or it is distributed directly to the customer without going through a previous storage period, which allows a reduction in delivery times, increased customer satisfaction and promotes cost savings.
Cross-docking has 4 phases of operation, which are:
1. Scheduling of distribution by suppliers.
2. Reception of the merchandise in the warehouse.
3. Registration and review of the cargo received as part of the quality control procedure.
4. Repackaging, consolidation of orders (if necessary) and dispatch of the merchandise.
There are 3 types of cross-docking:
Advantages of using cross-docking.
- Pre-distributed cross-docking: It is the most basic model. The supplier prepares the units according to the final demand, the merchandise is dispatched and received without having to go through the warehouse.
- Consolidated cross-docking: The merchandise is adapted to the client's requirements, so the load units are received at the distribution center where they are examined and adjusted to the requested orders.
- Costs reduction. When there is less need for storage space, there is a lower cost of warehouse, merchandise handling and use of personnel for these tasks.
- Optimization in delivery times. Avoid excess storage and deliver your products on time.
- Better control. It offers better control and management of customer needs, therefore there is an increase in product availability.
Office Depot is a company that uses cross-docking in its strategy, with this it has managed to eliminate the racks in its distribution center and replace it with a cross-docking operation center. With this, Office Depot was able to streamline the operation and increase productivity between 25 and 30%.
When to go cross-docking:
- When you have items or some food that don't need temperature control.
- When your products are already packed and ordered, ready for transport to a private customer.
- When you don't have enough storage spaces and you have a high inventory turnover.
Remember, at Dasza we are at your service. Dasza 3PL is your option.