[FR] What is cross-dock logistics? What’s in it for you?

The world of logistics is full of techniques designed to optimise flows and reduce costs. There’s one technique you may be wondering about: logistics cross-docking. Find out in this article what cross-docking is, what its benefits are, and what you need to do to implement this strategy in your business.

Cross-dock logistics: a simple definition

Cross-dock logistics (or cross-docking) is a logistics method that involves delivering goods directly from the manufacturing plant to the final point of sale (shop), or even to the consumer.

With this type of logistics management, the products do not go through a storage phase, or an order preparation and packaging phase. It is therefore a just-in-time logistics organisation method, also known as “direct flow delivery”.

What are the different types of logistics cross-dock?

Depending on a company’s supply requirements, there are several different types of logistics cross-dock:

Direct cross-docking, also known as pre-distributed cross-docking. With this type of method, the goods just need to be loaded immediately after leaving the production line, without the need to sort them.
Indirect cross-docking, or consolidated cross-dock. Here, goods arrive on pallets and are de-palletised to be sorted and sent to the outbound docks.
Mixed cross-docking, or hybrid cross-docking, which combines goods leaving the production warehouse with other goods already in storage.

How does cross-docking work in practice?

Cross-docking is a logistics process that requires companies to have a suitable goods-in platform. This platform is called a cross-dock logistics terminal or a transhipment terminal.

At this terminal, incoming and outgoing logistics flows cross paths:

Products are picked up at the receiving dock of a cross-dock terminal.
They are taken out of the vehicle so that they can be examined (and sorted if necessary)
They are then placed on the outbound side of the terminal, on the shipping dock, in other lorries, depending on their destination.

In short, with logistics cross-docking, the logistics warehouse becomes a place of pure transit, where goods remain for a maximum of 24 hours.

What are the advantages of logistics cross-docking?

Many logistics departments choose to implement cross-docking. And with good reason: this method brings real benefits, both to the company and to the end customer.

These include

Saving space. Because products are not stored or packaged in a warehouse, there are significant cost savings in terms of stock management.
Improved productivity for logistics teams. They do not have to prepare orders. As a result, fewer logistics and flow management operations are required, and the teams spend their time on quality-related tasks rather than purely operational ones.
Faster deliveries. Goods spend less time in the warehouse, which means faster delivery to the end customer. So much for customer satisfaction!
Less risk of damage to goods. Less handling means less risk of breakage or damage to goods.
A reduced carbon footprint. If cross-dock logistics requires less storage space, it also means less energy consumption. What’s more, this method makes it possible to optimise delivery routes, so lorries spend less time on the road. In this sense, it is an ideal practice for implementing greener logistics.

A final advantage of cross-dock logistics is that it enables bulky products to be transported in several parts, so that they can be delivered more easily to the end customer. This is particularly useful when the different parts come from different suppliers.

On the whole, where it can be implemented, cross-dock logistics makes for greater profitability, thanks to increased performance and lower logistics costs.

When should you consider implementing a cross-dock strategy?

The cross-dock logistics method is generally used by e-commerce companies, mass retailers and those responsible for delivering the daily press.

But whatever your sector of activity, this logistics strategy can be interesting:

If you manage perishable products with expiry dates. Cross-docking allows you to avoid storing them in a refrigerated warehouse, and to ensure that your delivered goods are always fresh.
If you manage large volumes of goods and market demand is relatively stable. Then you can reliably predict your customers’ needs, and limit the amount of stock you need to manage.
If you manage high-volume products with a high turnover rate. Thanks to cross-dock logistics, you can respond more quickly to customer demand, without overloading shop or warehouse stocks.
If you have to deal with peak order periods (for example, during sales or the peak season at the end of the year). Cross-docking allows you to process a large flow of orders directly, without having to go through the storage and packing phase.

The essentials for a successful logistics cross-docking strategy

Cross-dock logistics may be attractive, but it requires your entire supply chain to be carefully organised and optimised.

If you’re thinking of embarking on this strategy, think in particular about :

Align all the stakeholders in your supply chain. The people in charge of receiving, sorting and dispatching parcels need to be coordinated around standardised logistics processes. All the stages in your supply chain need to be orchestrated quickly to avoid products sitting on the receiving and dispatch docks for too long. This involves a well-oiled labelling system to check product traceability and quality at every stage.
Putting the right technological tools in place. You’ll need software such as a Warehouse Management System (WMS) to ensure the traceability of goods at every stage of cross-docking, as well as a Transport Management System (TMS) to optimise your delivery rounds. Take the time to see whether your current information system, or the one you choose, is really suited to your needs.
Train your teams to do the right things. Your operators and/or carriers need to be able to check and load goods quickly, while ensuring their safety during handling.

A winning and profitable strategy, cross-dock logistics is worth experimenting with if you want to significantly improve the fluidity of your physical flows. But, whatever your choice of strategy, never forget the key element that you need to monitor on a daily basis: your customer satisfaction!