What does crossdock

Cross-docking

What is cross-docking?

Cross-docking or cross-coupling refers to a type of handling for goods in logistics and has become increasingly important in recent years. The aim of the cross-docking concept is no longer to store goods, but to transship them directly and send the goods on to customers. This system can reduce storage costs.

Cross-docking is particularly suitable for companies that handle large quantities of goods, such as distribution networks with many incoming and outgoing goods and plannable quantities. The individual storage points become cross docking points. Such a point is usually the central warehouse of a dealer or a logistics service provider.

In practice, there are three different variants of cross-docking:

  • Single-level system: With the single-level variant, the goods are pre-picked by the supplier in relation to the final recipient. This means that the goods are packed by the sender and sent directly to the final recipient via various transfer points. The sender or the supplier must note the address details of the recipient on the goods ahead of time.
  • Two-stage system: The two-stage variant is also known as the transshipment system. With this method, the goods are sent unchanged from the supplier to the transshipment point. From this point the picking for new units of goods and delivery to the final recipient is carried out.
  • Multi-level system: Multi-level cross-docking is the third variant. In comparison to the transhipment system, additional process steps are required with this variant. Further steps can be, for example, packaging or labeling.

Cross-doking offers the following advantages:

  • Shorter lead times
  • Timely delivery
  • Minimization of storage space requirements
  • Reduction of storage costs
  • Reduction of the inventory