Cross Docking

Cross-docking has been around since the 1930s, first used by the U.S. transportation industry and then by the U.S. military. It's an Anglicism that can be translated into French as "passage à quai". The term refers to goods that move from the unloading dock to the shipping dock in the same warehouse, i.e. they cross (hence the name) between platforms, without passing through a storage stage. Goods are therefore in transit, like passengers in an airport between two connecting flights. The aim of this type of organization is to optimize inventories of fast-moving products, and thereby rationalize all stages of the supply chain: receiving, depositing, order preparation, truck loading, etc.

However, its implementation and success depend on a number of factors

Cross-docking in all its facets

This method of organizing logistics flows involves several perfectly controlled stages, and the various parcel routes follow a standard model in which parcels are rapidly divided thanks to a single encoding, then repackaged and redirected to the platform's exit dock for dispatch.
However, there are several possible operating modes: firstly, there is pre-distributed cross-docking, which is the classic version. Load units are managed upstream by the supplier, according to final demand. Here, it's simply a matter of receiving and dispatching orders. Then comes consolidated cross-docking, where products are managed to match end-user demands. Here, the load units received are then forwarded to a cross-docking or packaging area, where they are checked and adapted according to demand. The warehouse will need to be equipped with pallets in smaller loading units, or designed to divide goods into individual batches or merchandise kits. Finally, we have hybrid cross-docking: a more complex model that requires orders to be prepared in the packing area, taking into account products delivered by shippers and those already in the storage area. Products received can be routed to a temporary storage area, instead of going straight to cross-docking. Hybrid cross-docking is flexible and can be adapted to a multitude of situations, but it requires highly sophisticated management and organization of all logistics flows.

A number of tools are needed to manage cross-docking operations successfully: first and foremost, an information system capable of managing all functionalities and ensuring live traceability of parcels throughout the process; the production of particularly precise schedules and reception/shipment tasks; and a referencing system adapted to the simple and rapid identification of parcels. In addition, suppliers must be able to handle both preparation and packaging. Many companies have opted for cross-docking to meet the needs of an omnichannel logistics strategy.

What are the advantages of cross-docking?

Cross-docking saves an average of 20% on product storage time, reduces dispatch times and increases financial margins. What's more, by avoiding the need to store goods, you can optimize warehouse floor space. Optimizing logistics operations, particularly in materials handling, and boosting team productivity means saving time and therefore money. However, to achieve this, it is crucial to control upstream supplies, and to coordinate all stages harmoniously, which requires an extremely rigorous organization that does not tolerate approximation.
In the past, logistics was based on a multi-channel approach. As this term implies, various channels are involved in commercial processes, but they remain side by side, without interacting with each other. Customers cannot buy using multiple channels, such as ordering online and picking up in-store. In other words, the channels are not integrated. From the point of view of customer purchasing preferences, this model is now showing its limits. Omnichannel is now the new model for customer relations, meaning that customers make use of all available channels, with access to all information relating to the purchasing process at all levels, and usually in real time. Many market operators have already adopted this omnichannel strategy. They are integrating their online and in-store channels to leverage both their reach to customers, and the advantage conferred by the Internet to increase revenues. Cross-docking is thus an imperative in all omnichannel logistics.

However, logistics managers need to plan inbound and outbound deliveries carefully, otherwise they will clog up the platforms and create a bottleneck that could prove costly in terms of lost productivity In addition, the quality of the goods must be ensured upstream, as there will be no quality control possible during "crossing", i.e. when products cross from dock to dock Cross-docking docks come in a variety of shapes: they are often L-shaped, but there are also H-shaped or T-shaped docks to organize transit management. Parameters such as the number of doors, distances, buffer zones and product rotation are crucial to the performance of cross-docking docks, as are specific equipment such as electric pallet trucks, forklifts and conveyor belts.

First and foremost, cross-docking offers greater reactivity, which is a major challenge in terms of logistics. The cross-docking platform is simply a handling area with no storage facilities. Packages are already packaged and ready for delivery to the customer. This technique is particularly useful for time-sensitive goods such as fresh produce and daily newspapers, as well as for reducing e-commerce delivery times A second significant advantage of this process is its cost. By speeding up the procedure and eliminating the storage stage used for conventional transport, intermediate warehousing and handling costs are eliminated. As a result, delivery costs are reduced, while product availability is increased Another advantage is that logisticians responsible for goods in transit have a better overview of their location and status throughout the supply chain, thanks to improved information flows and modern traceability systems On the other hand, cross-docking may not make much sense when goods turnover is slow. For the latter, a conventional warehouse layout would be more appropriate. Where handling activities are required, however, this supplement would make cross-docking unattractive.