2. WHAT IS CROSS DOCKING
Cross-docking is the practice of unloading goods from inbound delivery vehicles
and loading them directly onto outbound vehicles. By eliminating or minimizing
warehouse storage costs, space requirements and inventory handling, cross-
docking can streamline supply chains and help them move goods to market
faster and more efficiently.
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.
3. ACTIVITIES INVOLVED IN CROSS-DOCKING
1. Inbound goods are first received at a dock and then unloaded.
2. Then sorted and scanned according to their final destinations.
3. They are then moved to the other side of the dock via forklift, conveyor belt or other equipment and
loaded on outbound vehicles.
4. CROSS-DOCKING IS BROKEN DOWN INTO 2 BASIC TYPES:
Pre-distribution cross-docking
With Pre-Distribution, products are unloaded, arranged, and repacked as indicated by pre-
decided distribution instructions. The customers are listed down at the end of the day before
the products leave the seller’s hub.
Post-distribution cross-docking
In the Post-Distribution cross-docking, the arranging of products is kept on hold until the
customers are listed down. That implies that the products are kept in the distribution Centre for
a longer amount of time. The process helps the sellers make smarter and informed decisions
regarding shipping, inventory, sales forecast and trends.
5. WHY IMPLEMENT CROSSDOCKING?
Crossdocking can provide a variety of benefits to your business including:
• Less expensive – Cross-docking terminals are much less expensive to set up than a building or to lend
an average warehouse.
• Reduce labour cost- less labor is required than conventional inventory management.
• Reduced inventory holding costs - less storage space is required within your warehouse than when
product is stored long term.
• Increased customer satisfaction - your team can process and ship orders faster, reducing delivery time
to end users.
• Reduced material handling risk - staff will typically handle product less, reducing the likelihood of
inventory damage.
