Cross-docking is an order preparation technique characterized by minimal or non-existent storage. In warehouses that use this method, goods are received, grouped by destination, and shipped out as quickly as possible.
This technique has many variations to adapt to different logistics needs. If you’re looking to improve your logistics operations, read on to find out which cross-docking model is best suited for your business.
Types of Cross-Docking: Advantages and Disadvantages
Pre-Distributed or Direct Cross-Docking
In pre-distributed cross-docking, the goods arrive already sorted by the supplier, meaning they do not need to be reorganized by the logistics company performing the cross-docking.
Thus, in pre-distributed or direct cross-docking, the goods are simply moved through the warehouse without breaking down or redistributing the transport unit (pallet, box, etc.).
This method is the fastest and most resource-efficient, but also the least flexible, as it does not allow consolidation of products from different suppliers or optimal redistribution of loads.
Consolidated or Indirect Cross-Docking
In contrast, consolidated cross-docking reorganizes the goods to match the final customer orders. Common activities in indirect cross-docking include pallet reorganization or splitting goods into smaller transport units.
This method is ideal for companies handling large volumes of goods that need further sorting before final distribution. It’s widely used in large retail distribution centers and food distribution hubs.
Hybrid Cross-Docking
Hybrid cross-docking combines part of the indirect model with traditional storage. In this method, orders are prepared using goods from both incoming supplier trucks and stored inventory.
Hybrid cross-docking is highly effective for companies with a wide variety of demand, as it allows them to alternate between direct and indirect cross-docking according to their needs.
How to Choose the Right Cross-Docking Variant
The best cross-docking model for your company depends on several key factors:
Number of SKUs in the warehouse: A high number of SKUs typically requires more complex storage and management systems, leading to higher operating costs. If the number of SKUs is low or the goods require minimal handling, direct cross-docking is best. As demand complexity increases, indirect or hybrid techniques are preferable.
Number of customers and suppliers: Just like with SKUs, the more complex your client/supplier network, the more handling will be needed, favoring consolidated or hybrid cross-docking.
Type of goods: Depending on the characteristics of the goods (e.g., large size, heavy weight), handling may be limited. In such cases, direct cross-docking is recommended.
Delivery time requirements: If delivery windows are very tight, minimizing handling is key. In these cases, direct cross-docking is the best option.
Cross-Docking Types Summary Table
Type of Cross-Docking
Description
Advantages
Disadvantages
Ideal for…
Pre-Distributed / Direct
Goods arrive already sorted by the supplier and don’t need reorganization.
Fastest method with lowest resource use. No extra handling.
Less flexible, can’t consolidate goods from different suppliers.
Companies with few SKUs, homogeneous demand, heavy/bulky goods, and fast delivery needs.
Consolidated / Indirect
Goods are reorganized to match final customer orders.
Allows consolidation and redistribution from various suppliers.
Requires more time and resources.
Companies with many SKUs, complex networks, and need for redistribution.
Hybrid
Combines indirect cross-docking with stored inventory.
Offers flexibility by combining storage and redistribution.
Higher complexity in management and planning.
Companies with variable demand, multiple suppliers and clients, needing adaptive operations.
Automation Tools for Cross-Docking
Automated Identification and Dimensioning Systems
Automated systems for identification and dimensioning are an innovative and ideal solution to overcome the limitations of manual pallet handling.
Weight and volume measurement is often overlooked in cross-docking but is crucial to detect discrepancies in declared weights and dimensions, allowing:
✔︎ Correction of delivery slips
✔︎ Prevention of billing losses
Sorters
Sorting systems (Sorters) allow you to integrate all the benefits of dimensioning through automated weight and volume checks, while enabling efficient material flows through repetitive internal transport procedures and standardized routing.
This improves internal organization and ensures harmonized material flow. Built-in dimensioning functions help cross-docking centers verify their loads.
Sorters take warehouse efficiency to the next level, achieving top scores across all key performance indicators (KPIs).
Cross-Docking vs Dropshipping
Cross-docking and dropshipping are both order preparation and distribution strategies focused on minimizing lead times and operating costs, but they have different scopes and applications.
Dropshipping is a modern distribution model where retailers sell products without keeping inventory. They act as intermediaries between the supplier and the final customer, reducing storage costs and financial risk. However, this model implies less control over logistics and shipment quality.
Cross-docking, on the other hand, is used by large suppliers to streamline distribution without long-term storage. Products are received at a distribution center and immediately shipped to the final destination, providing greater control and flexibility, especially for urgent orders.
In short:
If your goal is to reduce inventory costs and test new markets, dropshipping is the way to go.
If you need to speed up deliveries while maintaining control over your supply chain, cross-docking is the better option.
We Help You Improve Your Cross-Docking Performance
At Brolla, we have extensive experience designing custom solutions for cross-docking, helping our clients gain a competitive edge.
With our automated scanning and dimensioning systems, cross-docking centers can boost warehouse productivity by automating the often time-consuming and error-prone task of goods identification and measurement.
Alex Rossell es ingeniero mecánico con más de 2 años de experiencia en diseño y mecánica de máquinas. Actualmente, trabaja en BROLLA Palletizing & Conveying Systems, donde se dedica al desarrollo de sistemas de paletización y transporte.Graduado en Ingeniería Mecánica por la Universitat Politècnica de Catalunya (UPC), Alex busca seguir contribuyendo a proyectos innovadores y eficientes en la industria.
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Cross-Docking vs Dropshipping
