Cross Docking Warehouse

A cross-docking warehouse is one in which goods remain on the premises for a short time after receipt, thereby reducing storage costs. Cross docking happens to be a distribution system where the goods received at a distribution centre or warehouse happen not to be stored, but rather prepared immediately for their subsequent shipment. In other words, the goods do not go into stock or undergo any other type of intermediate storage.

Cross docking warehouse in Abbotsford is focused on the process of consolidating products and deconsolidating multiple orders.

Based on the accomplishments carried out, two types of Cross Docking are there: direct and indirect.
1. Direct cross-docking

The load units that arrive at the cross docking warehouse in Lower Mainland are transported in the same format without manipulation to the departure dock. The supplier is the one who prepares the deliveries, based on the end customers and using a specific load unit (boxes, pallets, etc.), the distribution center identifies, classifies and sends the merchandise to each customer.
Direct Cross Docking is also known as Pre-distributed Cross Docking.

2. Indirect cross-docking

This type of cross docking involves more handling operations, since the pallets or boxes arrive fragmented and must be defragmented and re-labelled for delivery.
Also known as consolidated cross docking, because the logistics units are received and sent to a conditioning area (within the distribution center) to organize the new logistics units and send them to their respective destination points.

Advantages of Cross-Docking
The advantages of a cross-docking warehouse can be summarized in 3 areas:

• Significant savings are generated, especially due to the limited personnel required to handle the products and the limited means of transport required.
• By reducing storage time, the probability of theft or loss of stored goods also decreases.
• Significant savings are achieved in direct and indirect logistics costs and time as storage and picking processes are not necessary.
• In addition to these three major areas and depending on the industry that uses cross docking warehouse in Langley, there are the following advantages:
• Reduce customer delivery times and improve product availability.
• Minimize distribution costs.
• Reduce warehouse location time.
• Reduce physical storage areas.
• Reduce the costs of handling and deterioration of goods.
• You support Just-in-time supply chain strategies.

Cross-Docking Strategies and Features

The strategy consists of a continuous flow of products, cost savings, fast transport at low cost and meeting customer needs.

The characteristics that allow identifying whether a company is implementing a cross-docking system are:

• Storage time is less than 24 hours
• The received goods are sent to the final destination or taken to the picking area (order preparation).
• There is an effective exchange of information between: suppliers, distribution center and customers.

Companies that usually apply Cross-docking are:

• Manufacturing companies: receiving orders, consolidating and sending materials to the manufacturing chain, to directly serve customer orders (internal and/or external).
• Distributors: Manufacturers who send their goods to a distributor to assemble the products and then ship them to their customers.
• Transporters: consolidation of goods with nearby geographical destinations, to carry out full loads that can reduce transport costs.

Last words

Cross-docking is not a new concept, but many companies like Whirl Logistics are offering an omni-channel supply chain. In any case, before adding it to our order preparation strategies, it is important to know the advantages and disadvantages of cross-docking and the situations in which it has proven to be a successful tactic. Only then can you can evaluate the convenience of cross docking warehouse in Vancouver Island for your company.