Cross Docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between. Cross dock services involve unloading, cross-dock services products/goods from a truck or container directly onto another truck for delivery. Items are not put away but merely staged near dock doors to await loading. Therefore, there is little to no storage, and turnaround time between receipt and shipment.
Key business benefits include:
- Streamlines the supply chain, from point of origin to point of sale.
- Reduces labor costs through less inventory handling.
- Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock.
- The elimination of manual picking, replenishment and sortation labor and associated costs