Cross docking is a kind of preparation to the order, without arrangement of goods in stock, and without operation of picking (collection). this allow move materials with different destinations or consolidate goods that come from different origin. Cross docking hasn´t any kind of intermediate storage.
This method allow save money and time. Cross docking avoid operations of storage and allow reduce the time of logistic operations. this system is especially used to fresc products and news, by big distributors like Carrefour, Grupo Eroski, Cecofar and Walmart transport.
Advantages of Cross Docking:
- Reduces material handling.
- Reduces need to store products in warehouse.
- No need for large warehouse areas
- Reduced labour costs (no packaging and storing).
- Reduced time to reach customer.
- Transportation has fuller loads for each trip therefore a saving in transportation costs while also being more environmentally friendly.
- Products are moved more quickly through a cross dock.
- Easier to screen product quality.
- Elimination of processes such as ‘pick-location’ and ‘order picking’
- Cross docking terminals are less expensive to construct than your average warehouse.
- High turnover of products with everything moving quickly through the cross docking terminal. Products usually spend less than 24 hours here.
- Products destined for a similar end point can be transported as a full load, reducing overall distribution cost.