Cross-docking
There are various transaction types for inventory in the shipping area. One of these transaction types is called cross-docking.
The most distinctive feature of this type of handling is that cross-docking eliminates the need for warehousing. The goods are already pre-picked by the supplier or sender. Delivered items are not put into storage, but are instead assigned directly to the corresponding goods issue and shipped.
There are three variants of cross-docking:
- single-stage,
- two-stage, and
- multi-stage.
The single-stage variant requires pre-picking by the supplier based on the final recipient. The inventory is forwarded unchanged to the recipient via one or more transshipment points. For this to be successful, it is necessary that the sender labels the goods with the name of the addressee in advance.
In the two-step variant, the goods are only forwarded unchanged to the transshipment point. From there, the transshipment into new units and delivery to the corresponding recipients takes place.
Multi-level cross-docking involves further process steps in addition to the actual repacking. Examples of this are the possible re-packaging of items or the labeling of goods.
The advantages of cross-docking include the creation of shorter throughput times, timely delivery, reduced inventory, minimized storage space requirements, avoidance of inbound and outbound processes, and reduced inventory costs.
For more information on goods handling, see this article.
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