What is Cross-Docking?
What is Cross-Docking?
This article explores the question of what cross-docking is in logistics and how it helps save time and money in all types of cargo transportation.
The task of a logistician is to transport cargo from point A to point B. In theory, it looks simple:
- Loading;
- Transportation;
- Unloading.
In practice, however, things are much more complicated. The cargo may not clear customs immediately, multiple modes of transport may be required for delivery, and delays can occur due to overcrowded warehouses along the route. These complexities can account for up to 12% of the delivery cost, which is significant. Therefore, professional logisticians who can reduce costs and save delivery time are highly valued.
One way to reduce transportation costs and time is cross-docking. This is a process where goods are not stored in warehouses during transit (and sometimes are not even delivered to them), spending most of their time in transport, in motion.
Since this process is primarily aimed at fast delivery, cross-docking is used when transporting:
- Perishable food items;
- Goods that do not require quality inspection;
- High-demand goods;
- Urgent delivery orders.
How Does Cross-Docking Work?
This process is only cost-effective for large volumes of goods. Other features of cross-docking include:
Transportation is carried out in factory packaging, which is not opened;
Various types of transport are used—from large trucks to small vans and even cars;
Each item has the same tracking number at every stage.
Types of Cross-Docking
The process can be either single-stage or two-stage.
Single-stage cross-docking is divided into six subtypes. The cargo may occupy an entire vehicle, or there may be one sender but multiple shipments, including sorting from a warehouse. The common factor is that the cargo is either the same or belongs to one category—for example, food products.
Two-stage cross-docking involves transporting goods from multiple categories. Here, special attention is paid to safety, but the process itself is more expensive.
Cost of Cross-Docking Services
In any transportation company, cross-docking is the fastest and cheapest method of transportation, but only if more than 3,000 cubic meters of cargo are shipped per week. Shipping rates can be obtained from the carrier's office.
