What is Cross Docking?
Cross docking is a logistics procedure where products from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time.
Would you please put some more light and explain us more?
Cross-docking is a practice in the logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same destination or similar destinations.
What are the advantages of cross docking?
Streamlines the supply chain, from point of origin to point of sale
Reduces labor costs through less inventory handling
Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock
Products reach the distributor, and consequently the customer, faster
Reduces or eliminates warehousing costs
May increase available retail sales space
Less risk of inventory handling
What are the disadvantage of cross docking?
Potential partners may not have the necessary storage capacities
An adequate transport fleet is needed to operate
A computerized logistics system is needed
Additional freight handling can lead to product damage