Bitergo's Logistics and Warehouse Management Glossary

Cross-docking

Written by Bitergo | Feb 7, 2024 12:14:20 PM

Cross-docking is one of various existing handling methods for goods. The special feature here is that it is a stockless distribution process: The goods arrive at the warehouse already pre-picked by the supplier and are no longer stored, but rather directly forwarded and dispatched to the corresponding outgoing goods areas. Cross-docking can be used to minimize throughput times in the warehouse and the need for storage capacity for large quantities of goods. This reduces warehousing costs. Personnel and financial expenses for the implementation of storage and retrieval processes are also eliminated. 

A distinction is made between three variants of cross-docking:

1. Single-stage cross-docking
The goods pass through the warehouse already picked and packed and are forwarded unchanged as a logistical unit to the recipient as part of a shipping order. 

2. Two-stage cross-docking
The goods are picked and forwarded to the transshipment point, where they are re-picked into new units and shipped to different recipients. 

3. Multi-stage cross-docking
This involves process steps that go beyond two-stage cross-docking, such as labeling or packing the shipping units.