Types of cross-docking services

Posted by CDS Group on February 27th, 2021

Cross Docking is defined as the process of supplying goods or products from the manufacturers or suppliers directly to the consumers. You just have the warehousing facility for distribution of products via inbound and outbound trucks. This is a very holistic logistics approach indeed. For the simple reason, that the storage facility requires minimum storage space. The goods are on the move continuously. 

The products are received via the inbound dock. The products are then unloaded from the inbound truck into the Cross Docking facility. The products are finally transferred from the warehousing center onto the outbound trucks. This is how the process works from end to end. Let us have an overview on three different types of cross-docking approaches that are adapted by warehouses across the globe. Shall we get started?

Continuous cross docking

This is the first and the simplest form of this type of logistics technique. The terminal has a central site through which a variety of products get transferred from one truck to another. Here, most of the terminals are connected via a line assembly mode. This way, loading and unloading is made more efficient, super-fast and hassle-free too.

Again, when you have a look at this type of approach, you have outbound trucks that are involved. These trucks can arrive at your warehouse servicing unit either earlier or across a later point of time. The truck that arrives early will eventually have to wait until the other truck arrives. This way, the goods or products can be unloaded from the warehouse services unit on to the trucks quickly and more efficiently. The same way, the goods that arrive from another warehouse center, are uploaded via the trucks in their entirety.

Consolidation cross docking

Sometimes, this is what happens at the supplier’s or manufacturer’s warehouse centers. You may have to merge different products at a single location. Then, you can vie upon the idea of having them transferred to the next location, all together. For example, let us take a huge retail store that has ordered for its supplies from the manufacturing hub. It would be a mere waste of time to drive several trucks that are not fully loaded. 

Here, you primarily come across the consolidation cross docking method. Now, typically what happens here? The process involves merging multiple goods/product loads onto one single outbound truck. If you further look at it, the warehousing unit, or the terminal will have ample storage spaces where different loads come over at different points of time. The goods/products then stay at the cross-docking facility until the outbound truck finally arrives at the destination indeed. 

De-consolidation cross docking

This is the third type of cross docking method indeed. What happens here? If you look at deconsolidation cross docking, the process acts completely opposite of how the consolidated form of the logistics approach works. Let us have an overview on how this particular methodology works.

You have a large inbound truck that is loaded with many different products or goods. It has different products that need to be unloaded at the next cross docking warehouse. It then lands at the terminal or the warehousing facility. All the products or items are unloaded from the truck and stored into warehouse storage spaces. After the process has been completed, an outbound truck or series of trucks load the products back to deliver to customers, retail hubs, and wholesale distribution centers and so on. 

These are the three types of cross-docking techniques that are universally adapted by renowned warehousing units across the globe.

Coming over to the second segment of this online guide; we will be reviewing some of the core advantages associated with adapting to cross-docking techniques. 

Here we will have a look at some of the major advantages you can enjoy when to adapt to a cross-docking technique on logistics. The pointers are bulleted for you to assist an easier degree of understanding:

• You have a higher product turn over while you adapt to cross docking methods of storing goods or products. This is mainly because the goods are transported from one terminal to another within the minimal possible time. This way, you can reduce your inventory’s shelf time. When you transport your goods to the other outbound centers, you can sell your goods faster. This in turn can improve the profitability of your company by a considerable extent indeed.

• You can do away with minimal storage spaces as the products or items are continuously on the move. You have the inbound trucks unloading goods into the warehouse. Almost immediately you have the outbound trucks loading the products into distribution centers. This way, the products reach retail hubs and consumers faster.

• Product related risks like damage to goods that are in transit or pilferage of perishable items are occurrences that are reduced to the bare minimum. The cross-docking facility instantly coordinates unloading or unpacking of products into the warehouse. Within a day or too, the outbound trucks are arranged, to load the products back into the trucks to various distribution centers. With no middlemen involved the process gets easier and hassle-free. The product tampering issues are never the case when you take to cross-docking logistics. 

• You can improve the profitability of your company as the goods or products you manufacture reach the consumers faster. This can have a direct bearing on elevating the brand of your company. You will get better and more loyal customers when you deliver them with your supplies at the said time. 

• Timely delivery of products and services can also invite more of clientele wanting to do business with you. Hence cross docking techniques can help you with your business diversification initiatives too. The farm to fork approach, this method deploys, is catching up a great momentum, amongst today’s millennial indeed. 

• Lastly, this is a type of logistics wherein human error in handling of goods or services is simply isn’t the case. This method calls for precision or accuracy at the highest level. 

Conclusion

Via cross docking method of logistics, you reduce product damage, loss of inventory and errors too. This is more often named the assembly method of loading and unloading of products or services. You have logistics firms who intend automating cross docking techniques too. Hence, you can expect more from the offing. 

CDS Group of Companies (Author Bio)

CDS Group of Companies that provide services such as cold storage, transportation, Transload Services, customs clearance and supply chain, warehousing services in Canada. For more visit here https://www.cdsltd.ca/