This system is key to achieving a more agile supply chain, capable of absorbing the huge and volatile demand in today's market.
The cross-docking is able to reduce time, costs and warehouse space. Before delving into all the benefits of this system, let's review conceptually what this solution is.
What is the cross-docking
This term refers to a typology of order preparation, based on the goods being distributed directly to the customer, without the need for prior storage. In other words, it eliminates the intermediate stage of storage of the products.
It is also characterised by its ability to adapt to any type of goods, whether they are raw materials or finished goods. These can reach their final destination, remaining in the warehouse for a very short time.
Although the cross-docking is not a new concept, the unstoppable growth of eCommerce has led companies to apply this system to their supply chains.
Types of cross-docking
The order picking system cross-docking can be carried out with different loading units. If we differentiate them according to the steps required to carry it out, we can highlight three different typologies.
- Cross-docking pre-distributed
This is the most basic model from cross-docking. In this case, the loading units have already been prepared and organised by the supplier, who has previously taken into account the final demand.
Therefore, in this case, the tasks to be carried out by this typology are: receiving the goods and dispatch in the intervention of the warehouse staff.
- Cross-docking hybrid
The hybrid typology, it is the most complex of the three. This is because orders for two different goods have to be prepared here: those coming from the lorries and those already in the warehouse. All this movement takes place in the packaging area.
The cross-docking is also the most flexible. Although perfect coordination is necessary, it makes it possible to cope with a wider variety of situations.
- Cross-docking consolidated
In this model, the unit loads are transferred to a packaging area where they are then examined and adjusted to the size of the orders demanded.
Therefore, this type, like the predistributed type, requires the goods to be handled according to the requirements of the end customer..
The benefits of cross-docking
If this order picking strategy is managed correctly, it can bring the following benefits to logistics:
- Streamlines operationsOne of the most important values of this system is that it shortens delivery times and speeds up the supply chain.
It achieves this because the system saves time in the dispatch of goods, as it is simpler and faster than the traditional system. This benefit brings with it a improvement of customer service.
- Saves space and costs: the cross-docking The system frees up stable storage space as it has only one area dedicated to checking and packaging incoming goods in a short time.
As a result, this system produces a inventory cost savings.
- Decreases intermediate stagesThe only actions that are maintained with this are unloading, quality control, order packing and dispatch. This means that intermediate stages, such as the picking and storage, disappear.
Accordingly, the operator productivity increases and, in addition, reduces the risk of damage to goodsThe use of the product in the warehouse means that it is handled and transported less frequently.
- Reduce carbon footprint: The system cross-docking saves energy related to the transport of goods both inside and outside the warehouse. In this way, it makes the supply chain greener and more sustainable.
Ultimately, if the aim is to streamline and make our company's logistics more efficient., the solution will be to implement this order preparation system, the cross-docking. And although it requires an effective integration of the entire supply chain, it will be worth it, as we will be able to shorten times, costs and, in addition, achieve better customer service. In this way, logistics can keep up with the high demands and requirements of today's market.
