With cross-docking, ordered goods are distributed without being stored.
For online retailers, this means that incoming goods from your suppliers are directly assigned to one or more orders in the outgoing goods department.
The aim of crossdocking:
A stock-free flow of goods - i.e. faster throughput times and an optimized supply chain with minimal warehousing.
Sounds good, but is it really that simple? No, of course details are crucial:
- Orders with items from different suppliers have to wait for the last goods receipt before they can be dispatched. Intermediate storage is usually necessary for this.
- Goods receipts often contain items for several orders or for regular stock. This means that all incoming goods must first be booked before the relevant orders can be processed. Only then are the items allocated - and that costs time, system support and space.
Cross-docking in your own logistics
If you handle logistics and shipping yourself, you can only scale efficiently with crossdocking if you use a warehouse management system (WMS/LVS).
Nevertheless, you will find that crossdocking ties up resources - especially personnel and space.
Cross-docking for outsourced logistics
Fulfillment providers are not always enthusiastic about cross-docking either.
Although most service providers have mastered the process, there is a lack of potential for added value:
- There are no margins for cardboard packaging, storage fees and pick & pack.
- Value Added Services (VAS) are also hardly in demand for cross-docking.
- In addition, a second incoming goods process is created, which requires more resources - the service provider must therefore be paid more for this effort.
CONCLUSION
As is so often the case in life, cross-docking offers advantages and disadvantages. Before you build your business model on crossdocking, you need to know and be able to evaluate all the influencing factors.
Are you considering introducing cross-docking in your store or are you looking for logistics support?
Then please get in touch, we will be happy to provide you with practical and expert help.