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Cross-docking services
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What is cross-docking?
Cross-docking is a type of service carried out by logistics providers, which increases the efficiency of supply chains. The goods are accepted and shipped to a warehouse without safekeeping services. In such scenario a warehousing facility acts as a kind of transshipment point without the long-term storage of the customer's cargo in there.
The acceptance process reduces the cost of renting a warehouse, its maintenance, personnel and simplifies the logistics process. Warehousing spaces have a specific layout for organizing cross-docking, and are equipped in a way that ensures efficient cargo acceptance processes and fast order picking.
The advantages of cross-docking are:
- reducing the delivery time of goods to the final consignee;
- ability of working with perishable goods;
- the need for a warehouse rental is reduced, hence the reduction in the need for the warehouse personnel;
- opportunity to work simultaneously with multiple customers and suppliers;
- reducing the time for picking up the goods;
- product rotation is reduced, excess inventory in stores is reduced, etc.
Cross-docking is used by chain stores, supermarkets, logistics and outsourcing companies, motor businesses and wherever a continuous flow of supplies is needed.
The disadvantages are:
- cross-docking brings profit only with large volumes of shipments;
- necessary connection with the ERP system of the supplier and the consignee, and with the WMS system of the cross-docking operator. Otherwise, legal problems may arise with the formation and the registration of the shipment.