What cross-docking is and how it helps in logistics
Cross-docking is a modern approach in logistics that can radically change the process of goods delivery. This method can significantly reduce storage time and optimise costs, making deliveries more efficient.
Sargona Private Capital Greece managers have analysed how companies can speed up delivery and increase customer satisfaction rates.
Sargona Private Capital Greece managers have analysed how companies can speed up delivery and increase customer satisfaction rates.
What is cross-docking
It is an order delivery scheme where goods are not stored in a warehouse, but are immediately redirected to the recipients. This means that the goods will either pass the warehouse or will be there for a very short period of time.
Objectives of cross-docking:
Objectives of cross-docking:
- Reducing the time goods are in stock.
- Reduction of storage costs.
- Speeding up delivery to the customer.
How cross-docking works
The process of logistics without storage is divided into two main types:
1.One-step cross-docking:
2.Two-stage cross-docking:
Two-stage cross-docking can include operations such as receiving goods, packing and labelling, and order picking.
1.One-step cross-docking:
- Goods are received and shipped immediately without processing. For example, if you receive a shipment of groceries and immediately ship them to a customer's shop.
2.Two-stage cross-docking:
- The goods are sorted in the warehouse before being dispatched. This approach is effective if you need to break one large shipment into several smaller shipments for delivery to different customers.
Two-stage cross-docking can include operations such as receiving goods, packing and labelling, and order picking.
Advantages of cross-docking
Sargona Private Capital's logistics specialists have analysed the advantages of cross-docking over the traditional storage model.
- Savings: goods pass through the warehouse in a day or less, which reduces storage costs and speeds up delivery.
- Optimise logistics: simplifying the supply chain allows you to work with more customers and suppliers.
- Minimise the risk of damage: faster handling of goods reduces the likelihood of spoilage or damage by sloppy warehouse workers.
- Small start-up costs: roughly speaking, all you need is a phone to keep in touch with suppliers and end customers.
Despite all the advantages, fast shipping has disadvantages:
- Clear planning and coordination of all processes is required.
- Strong influence of the human factor.
Disadvantages of cross-docking
This method is great for:
- For companies that work with large volumes of goods (e.g. hypermarkets, logistics companies).
- For companies that sell perishable products or goods with a limited shelf life.
- For newcomers who are just starting out in the business.
Disadvantages of cross-docking
If you are considering using cross-docking in your business, here are a few recommendations:
To summarise, Sargona specialists pointed out that cross-docking is a real lifesaver in the world of logistics. It helps to avoid storage costs, makes delivery fast and economical, and makes your business dynamic and profitable.
- Analyse your business needs: determine if cross-docking will really help your company. This is a must for those who deal with high volumes of goods on a regular basis.
- Build partnerships: make sure that all supply chain partners are ready for the scheme. Good communication between all parties involved is key to success.
- Plan your logistics: think about routes and shipping patterns in advance to minimise risks and delays.
To summarise, Sargona specialists pointed out that cross-docking is a real lifesaver in the world of logistics. It helps to avoid storage costs, makes delivery fast and economical, and makes your business dynamic and profitable.
Recommendations for implementing cross-docking
