A more diverse meaning for the name cross-docking is the process of directly transferring materials or goods without storing them or handling them directly, from the suppliers or manufacturing plants to the consumer. It is referred to as cross docking because basically the products or materials cross over from the receiving dock to the outward shipping point onto the carriers. Cross docking is a key supply chain and logistics practice that promotes smooth, coordinated and high flow transfer of information and materials from producers to consumers. Cross dockage benefits businesses that deal in fragile materials as well as temperature controlled products like edible substances that require quick action. For one, cross docking reduces the risk of handling and storage of materials which in turn reduces expenses such as insurance costs, space costs and labor costs for packaging and storing. An additional benefit is the fast transfer of materials to the outbound transportation which suggests that shipments are packed adequately minimizing the number of rounds made. Hence, cross dockage saves time, is environmentally friendly and reduces transportation costs. The process of cross dockage also provides a central site for sorting products, breaking down large products into small loads and combining numerous smaller products. Although there are many cross docking forms, in its purest form cross docking involves no storage at all. Cross moorage is put into practice in other categories of trade like manufacturing an automotive industries, parcel delivery and grocery industries. Cross dockage benefits businesses that deal in fragile materials as well as temperature controlled products like edible substances that require quick action. Cross docking requires cooperation among members of the supply chain and trading partners. IT is key in cross docking for efficient supply chain synchronization and transportation systems to perform daily planning an execution of orders.Information technology is very crucial in the handling of cross dockage for adequate harmony of logistics and shipping systems. Cross docking must be monitored and programmed carefully due to the wide range of products and large mass of materials. A crucial part of cross moorage is predicting the onset of materials and products into the dock thus ensuring the availability of space and adequate resources to ease their transfer out. Supply chain productivity can be implemented with the help of cross docking.
To complete the outbound load before shipping, inbound materials are sorted with onsite materials and both are combined. During sorting an preparation of material before onsite and inbound are mixed, they are organized in racks for faster retrieval when required. This provides flexibility and saves on transportation and handling. In most trades, cross docking creates a suitable environment for reliability in the logistics network. Cross dockage promotes good, fast and reliable transmission of materials or resources and info amidst customers and merchants hence very significant in the supply network.
Source: what is a dock