Cross Docking Services

The supply chain is a complex connection of warehouses, shipping partners, and transportation methods. Creating new efficiencies in the process is paramount for improving your businesses operations and bottom line.

Cross docking is a hyper efficient way to improve shipping time and cost.

If you’re interested in cross docking solutions, keep reading.

What is Cross Docking?

Cross docking is a shipping procedure where goods are moved from inbound suppliers to outbound customers with no additional storage or handling time.

Cross dock facilities have two sides: One for inbound shipments and one for outbound trucks. When goods arrive at the facility, they are moved directly to the outbound trucks for immediate shipment.

The only handling that occurs at a cross dock facility is unloading, screening, and sorting. However, depending on what the goods are, they can be moved into outbound trucks immediately.

When is Cross Docking Used?

Cross docking is not for every business. Businesses that don’t need faster speed, or that don’t want to deal with complicated coordination won’t usually want to deal with cross docking. But in certain instances, it’s a very helpful and often needed service.

• Limited Time Products: Seasonal goods or limited time products need to be moved quickly or else the window of opportunity will be closed.
• Perishable Items or Goods With Environmental Needs: Drinks and food products that have an expiration date or specific temperature needs typically use cross docking. It speeds up the process so the goods are more likely to arrive in a good condition.
• Products That Don’t Need Inspection: Some industry standards require goods to be inspected upon arrival. This added step won’t work well with cross docking. Therefore, goods that don’t need to be inspected upon arrival are great candidates for cross docking.
• Steady Demand Products: When a product has a steady demand, it’s easy to know how much needs to be moved. If a business is aware of the specific demands for a product they’ll have an easier time opting for cross docking.

Cross docking is best utilized by businesses with products that have a steady demand or require special temperature control.

Related Resources: How to Improve on Time Delivery in Manufacturing, Warehouse Cost Saving Ideas

Who Coordinates Cross Docking?

Cross docking requires a lot of coordination across the entire supply chain. Inbound shipments need to arrive on time, and outbound shipments need to be packed correctly and quickly. This means ensuring trucks won’t be overfull when goods are packed.

This level of supply chain management is mostly covered by cross dock warehouses, but it’s up to the seller to make sure their goods reach the inbound docks at the proper time.

Related Resources: Freight Carriers vs Freight Forwarders

What Industries Use Cross Docking?

Industries that use cross docking include:

• Agriculture: Plants need to be moved in a timely manner or else they could die from exposure.
• Lumber: Some specialized lumber can be destroyed if humidity or temperatures reach a certain level.
• Food: Perishable foods like veggies, frozen goods, and dairy products will spoil in a regular truck. 
• Drink: Some drinks require to be kept at a certain temperature or else they could spoil.

Any business can use cross docking, but those that require special care or quick delivery utilize it more often.

Types of Cross Docking

There are different ways to do cross docking. Each method is designed for a special need. 

Deconsolidation Cross Docking

When large incoming shipments arrive at a facility and are split into smaller shipments, that’s deconsolidation docking. The best example of this is the mail carrier. Larger shipments come from all around the country, and when they arrive at a local facility in a semi truck, they’re reorganized into smaller mail cars for final delivery.

Consolidation Cross Docking

Consolidation is the opposite of deconsolidation. Smaller shipments arrive at a facility and are split into larger shipments. Businesses that need to move goods in smaller shipments can save money by consolidating those goods into a larger shipment. 

If a business produces less-than-truckload shipments across different facilities, those shipments can be combined into full-truckload shipments at a cross docking facility to cut transportation costs.

Continuous Cross-Docking

Some cross docking facilities operate continuously, meaning there’s a constant flow of inbound and outbound trucks. Goods are loaded directly onto the outbound truck with little to no storage time. 

These high-volume docks require constant attention and a higher level of coordination than other docks. However, this type of docking is particularly useful for high volume products that are continuously being moved. Food is a great example of this.

Benefits of Cross Docking

The supply chain hasn’t been described as efficient, maybe ever. There’s a lot of changing hands and goods often need to be stored in various distribution centers before reaching the last leg of shipment. Cross docking removes much of the arduous waiting in traditional logistics.

For the Shipper

Shippers benefit tremendously from cross docking. Goods can be sent to their final destination much quicker than traditional warehousing methods. The cost of cross shipping is often cheaper for shippers because it requires less space and they won’t need to pay for warehouse space.

There is also less material handling of products shipped with cross docks. Less handling means a lower chance of goods being damaged.

Businesses that need to move perishable goods also greatly benefit from cross docking. Storage time is virtually zero, so food products won’t need to be stored in specialized areas of a warehouse. Instead, they’re just walked over to the insulated trailer that’s already waiting for them.

For Warehouses

Cross docking happens quickly. That means there’s no need to organize warehouses while waiting for available trucks. This reduces storage needs and streamlines the processes for warehouses. However, setting up operations and coordinating trucks can be a logistical challenge.

Warehouses that offer cross docking services bring a lot of value to their customers and place them in a competitive place.

Open Road can help warehouses with all of their shipping needs. We connect business with hotshot drivers all across the country. Sign up for Open Road and simplify LTL shipping.

Challenges of Cross Docking

Cross docking is a great option for many businesses, but it’s not without its challenges.

It Requires Sufficient Transport Carriers

Cross docking is not something you can do halfway. To get the most out of this expedited docking system, businesses need a sufficient number of transportation carriers. The initial investment for cross dock terminals is very high. Again, there’s no half measure. That goes for shippers and the warehouse.

This challenge of cross docking can be combated with the help of hotshot truckers. Instead of hiring a lot of drivers and investing in trucks, you can tap into this talent pool only when needed. Hotshots are specialized haulers who can move goods with agility and efficiency.

Related Article: Freight Carriers Vs Freight Forwarders: What’s the Difference? 

Suppliers Need to Be Reliable

It is crucial for inbound shipments to be on time. If shipments are late, the outbound transport can’t wait. When things get backed up in cross docks, chaos will ensure. If you’re interested in using this form of transportation, you need to ensure that shipments will arrive on time.

This challenge can be faced with the help of hotshot drivers. These drivers can bring goods to their destination in a timely manner.

It Requires Lots of Planning

As mentioned earlier, cross docking requires a lot of planning. For operations to be continuously running smooth, plans need to be made quickly. The process requires:

• Supply-demand analysis
• Shipment schedules
• Truck loading plans

The level of efficiency cross docks offer makes all the planning worth it. 

Drive For Cross Docking with Open Road

Participating in cross docking requires quick, efficient, and on-time drivers, but for small to medium sized businesses, having the equipment to utilize these services can be challenging. That’s where hotshot drivers come in.

Hotshots are specialized delivery drivers who use their own trucks to offer on-demand LTL shipping services to businesses. They’re able to act fast and offer warehousing delivery and transportation services. Hotshots can be used for cross docking—especially when time is tight.

Open Road is a service that offers businesses the ability to connect with hotshots and ship goods quickly. If you want to make your shipping more efficient and cost effective, contact Open Road and start shipping.

Related Resources: The Benefits of Last Mile Delivery