What is cross docking?

Your quick-start guide

In today’s on-demand economy, uncovering approaches that speed delivery, improve order accuracy, and cut costs are key. For some, cross docking is that ideal solution. But what is cross docking, exactly? And what type of business is a best fit? The more you understand, the more empowered you are to optimize your logistics strategy.

Let’s dig in.

What is cross docking?

Cross docking accelerates product from point of origin to point of sale.

As inbound freight arrives at a cross docking facility, it may be sorted and then loaded onto outbound trucks—dramatically reducing warehousing time or eliminating storage altogether.

Two crossdocking facility workers preparing to load a small shipment onto an outbound truck

How does cross docking work?

The process varies according to the particular approach used. (More on that in a minute.) That said, the steps generally include:

1

Unloading a manufacturer or supplier’s inbound products when they arrive at a cross docking facility

2

Sorting and grouping products according to their delivery destination, if needed

3

Loading products onto outbound trucks for customer delivery—bypassing warehousing storage

What is a cross dock facility?

Unlike warehouses, cross dock terminals are designed to support same-day freight transfer.

These typically I-shaped facilities often feature inbound loading docks on one side of the building structure and outbound loading docks on the other to accelerate the flow of product through the facility.

A diagram that shows an inbound semi truck backed up to a cross docking facility with an arrow showing the flow of freight to the outbound semi truck
Small palletized freight at a cross dock terminal that has been unloaded from an inbound truck

What are the benefits of cross docking?

Cross docking services can empower shippers to boost KPIs critical to their business success:

  • Faster delivery: This streamlined logistics process gets product to customers more quickly, helping deliver against on-demand expectations.
  • Reduced costs: By minimizing storage and handling, companies can likewise minimize the associated warehousing and labor expenses.
  • Minimized risk of damage and loss: Freight at rest is freight at risk, and risk increases with every touch. By keeping freight moving and minimizing handling, cross docking mitigates losses and frustrating cargo insurance claims—all while protecting customer relationships.
  • Improved supply chain sustainability: Consolidating products for delivery at a central cross docking location enables companies to optimize their shipping. Foregoing warehousing and LTL shipping, products can ship same-day via full truckload, ultimately reducing energy consumption and transportation emissions.

Types of cross docking

Cross docking solutions are defined by the method in which they sort and allocate freight, as well as by the process they use to move inbound freight through the cross docking facility. Each approach delivers an effective solution to a unique shipper need.

Cross docking by sort and allocation method

Pre-distribution cross docking

This approach enables freight to be transferred directly from inbound to outbound trucks, as products are sorted for final destination before departing for the cross docking terminal.

This cross docking method is most effective for shippers with established distribution channels and products with predictable demand.

Post-distribution cross docking

This approach supports sorting inbound freight for final delivery at the cross docking facility before being loaded onto outbound trucks.

While this method empowers shippers to effectively respond to fluctuations in demand, it also requires more sophisticated sorting operations and technologies to ensure accurate order fulfillment, ultimately keeping customer satisfaction high.

Process-specific types of cross docking

Continuous cross docking

Products are offloaded from the inbound truck and transferred directly to the outbound truck for delivery.

This approach minimizes storage time and associated costs, and is ideal for transporting high-demand products.

Consolidation cross docking

Smaller product shipments from various manufacturers are combined at the cross docking terminal into larger loads.

Freight consolidation enables small businesses to take advantage of full truck rates, helping them realize transportation cost savings—all while reducing carbon emissions.

Deconsolidation cross docking

In this scenario, the product shipments are split into smaller, more manageable loads for final delivery.

When is cross docking used?

Industries that produce perishable products, leverage just-in-time manufacturing processes, or must keep shelves stocked to maintain customer loyalty are prime candidates for cross docking logistics.

Some common industry applications include:

Retail

Big box retailers leverage cross docking to protect against stock-outs and keep retail prices low for their consumers. This is particularly important when it comes to seasonal merchandise and high-demand products.

E-commerce

Companies transacting business online use cross docking services to meet growing on-demand expectations; rapid fulfillment is critical to earning consumer loyalty.

Food and beverage

Growers and producers leverage cross docking to accelerate highly perishable goods, like meat, berries, and dairy products, through the cold chain, ultimately mitigating against spoilage.

Manufacturing

Manufactures tap cross docking partners to accelerate products and materials through the supply chain to maintain plant uptime—especially those that adhere to quick response manufacturing principles.

What to consider when vetting cross docking service providers

While many third-party logistics companies offer cross docking services, it’s important to note that this is a niche service. Experience is king if you want to avoid the pitfalls that would otherwise wipe-out your gains (and then some).

Find the right team, and you’ll find that a cross docking strategy can help you save money, boost customer satisfaction, and alleviate worry so you can focus on what you do best.

Look for the following as you vet potential providers:

  • A deep understanding of your specific product requirements, including storage temperatures and handling procedures, to help protect against breakage, spoilage, and loss
  • A proven history of accurately sorting products to avoid impacts on customer relationships
  • A demonstrated ability to move product out of the cross docking facility on time to avoid downstream disruption
  • Robust technologies to deliver real-time visibility, anytime access to information, and streamlined communication

Want to know more?

We got our start in beer, wine, and spirits. Meaning, we can cross dock complex loads in our sleep. If you’d like to dig into the nitty-gritty of optimizing your logistics strategy, please reach out. We’re happy to help.