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Cross-Dock

Introduction

A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities.

What is meant by cross dock?

Cross-docking is the practice of unloading goods from inbound delivery vehicles and loading them directly onto outbound vehicles.

How do you cross dock?

How Does Cross Docking Work?
Truckloads arrive at the entrance docks to the warehouse.
The goods are unloaded and sorted and loaded into trucks waiting on-site.
The newly loaded trucks deliver the goods to the customers.

Why is cross-docking used?

Cross-docking is also often used when handling time sensitive and perishable inventory. Due to the reduced shelf life, inventory needs to reach retailers with a reasonable remaining shelf life. By forgoing storage and utilizing cross-docking delivery time is reduced. This provides the goods with a longer sales window.

Is it a good idea to cross dock?

A huge benefit, cross-docking can reduce costs and save time. Since items dont need to be picked and stored in a warehouse, there is a reduction in labor and warehouse storage costs. Cost of goods sold (COGS) accounts for a significant portion of inventory expenses.

What is an example of cross-docking?

An example of cross docking is when freight from incoming trucks is wheeled across the shipping dock and loaded directly on outbound trucks without entering a warehouse. In reality, cross docking as a supply chain strategy is generally more complicated; for instance, outbound trucks can be delayed.

What are the types of cross-docking?

There are a two major types of cross-docking: pre-distribution and post-distribution.

What is LTL cross-dock?

Transportation cross-docking combines LTL and small package shipments from multiple carriers. This creates larger shipments for economic scalability and reduced handling requirements.

Who uses cross docks?

Who uses cross docking? Three case studies
Roche Diagnostics (Switzerland) In the pharmaceutical industry, Roche Diagnostics uses cross docking for its transportation of products. .
Amazon (USA) The retail behemoth Amazon uses cross docking for its retail deliveries. .
Mainfreight (NZ)

What is the most important benefit of cross-docking activity?

The main benefit of utilizing cross docking services is consolidation. By using cross docking to consolidate incoming and outgoing shipments, your business can save a bunch of money on shipping costs, as well as on labour costs because only one truck will arrive and need to be unloaded.

Conclusion

Disadvantages of Cross-Docking to Consider:
Partners May not Have Storage Capacities. .
Freight Handling May Cause Product Damage. .
Management and Attention Required. .
May not Deliver Right Product On Time.

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