Cross Docking

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What Is Cross Docking?

Cross-docking is a process done by moving goods from one transporting vehicle to another or directly to the customer, with no storage in between. Cross docking reduces the time it takes for a product or a set of products in different areas to be delivered.

Importance of Cross Docking

Cross docking saves both time and money for e-commerce brands. It has many benefits for distribution centers, like:

  1. Cross docking is a cost-saving method for companies as it reduces storage fees, labor costs, inventory carrying costs, and warehousing expenses.
  1. It decreases the time that products are stored in trucks, which can be costly and unsafe.
  1. It reduces congestion in loading docks, translating into less time spent unloading and loading trucks.
  1. It eliminates most picking processes like order picking and location picking.
  1. It aids in the load size, which in turn helps the business save shipping costs.

Implementation of Cross Docking in Logistics and E-Commerce

One can break down the cross-docking process into four steps:

  1. Inbound goods are transferred from one vehicle to another without being unloaded.
  1. Outbound goods are transferred back to the original mode of transportation and then sent on their way.
  1. Outbound goods are transferred back to the original method of transport but stored in a warehouse before they’re sent on their way.
  1. Inbound goods are sent directly to an end customer or distribution center for storage.

Use Cases of Cross Docking

Suppose you have recently set up a company and want to be cautious with the budget and expenses. In such a situation, you can use cross docking as it will allow you to save money on the warehouse while also moving your stock faster as compared to putting it in the warehouse first.

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