Overview
In this guide, we will explain what Cross-Dock is and how this works in a 3PL environment. It is important for our clients to know what inbound shipments class as a cross-dock so we can ensure that these are raised correctly within the OMS and dealt with as required when goods are received into the facility.
What is a Cross-Dock
A cross-dock is a logistics practise, often used in 3PL.
It involves unloading goods from inbound delivery vehicle and directly loading them onto outbound vehicles, with little to no storage time in-between. Incoming goods from suppliers or manufacturers are quickly unloaded, sorted and then reloaded onto outbound transportation vehicles, for delivery to their final destination.
What are the benefits of cross-docking?
1. Efficiency and Speed - aims to accelerate goods delivery & increase supply chain efficiency
2. It lets you distribute inventory more effectively, without keeping in the warehouse facility for long periods
3. Minimised Storage - goods are typically moved within a few hours or, at most, a day
4. Consolidation and Deconsolidation - small shipments from multiple suppliers are combined into a single, larger shipment to be delivered to the customer (consolidation), or large shipments that are broken down into smaller loads for delivery to multiple destinations (deconsolidation).
5. Reduced Handling
How does cross-docking work in a 3PL environment?
1. Inbound Stage: Goods arrive at the cross-dock facility. These goods are typically pre-labelled and pre-packaged according to the final destinations.
2. Sorting and Inspection: The goods are unloaded and sorted based on their final destinations.
3. Outbound Stage: After sorting, the goods are directly loaded onto outbound vehicles.
Process for cross-docking at GEE
1. Client to notify the CSR Team of the cross-dock inbound and provide any other requirements (if necessary). This should be sent via email to 3PL@globalecommexperts.com, as this will allow a ticket to be created for the request 2. CSR to create an ASN in the OMS. 'CD' is to be included in the PO Reference and the 'cross dock' SKU is to be associated to the ASN< along with expected quantities and No. of cartons/pallets information
Please Note: if a cross-dock needs to be merged with stock from inventory, the CSR Team will also create an order within the OMS and attach this to the ASN
3. Once the goods are received, the Goods In Team will book in the ASN and put this away in the cross-dock section. They will create a ticket to the CSR Team, who in turn will notify the client of this delivery
Please Note: if there is also an order outstanding, the Outbound Team will pick and palletise the order and move this across to the Cross-Dock location
4. Shipping to be determined and arranged
5. The Order is shipped as specified by the client, to the CSR Team
Things to remember
- Cross-Dock can only be used if the products are being sent out as received on the ASN. If SKUs need to be removed/added, the ASN will need to be set up for the specific SKUs as cross-dock is not relevant
- Cross-Dock should be used for incoming goods that are expected to leave the warehouse again very quickly after these are received in to the facility
Need more help?
If you have any questions, queries or require any help with understanding cross-docking in more detail, please
reach out to the Team who will be happy the help