crossdocked

Crossdocking is a logistics method where incoming goods are received and immediately prepared for outbound shipment with little or no storage. The term also describes the shipments themselves that have been crossdocked.

In typical practice, goods arrive at a receiving dock, are sorted by final destination, and loaded into outbound transportation for delivery to stores, distribution centers, or customers. By bypassing extended storage, crossdocking aims to reduce handling, move goods faster, and lower inventory costs.

There are several forms. Flow-through crossdocking moves items directly from inbound to outbound. Consolidation crossdocking groups several inbound shipments for a combined outbound load, while deconsolidation breaks a large inbound into multiple outbound shipments. Some operations combine these approaches depending on network design.

Success relies on timing and data visibility. Common requirements include a warehouse management system, transportation management system, electronic data interchange or advance shipment notices, accurate barcoding or RFID, and synchronized dock scheduling.

Benefits include shorter order cycle times, reduced handling, lower working capital, and decreased storage needs. Risks involve dependency on supplier reliability, tight coordination requirements, potential dock congestion, and higher upfront infrastructure and IT investments.

Crossdocking is widely used in retail distribution, grocery, manufacturing supply chains, and e-commerce fulfillment where speed and throughput are priorities.