Cross Docking Center

Efficient transshipment: shaping the future of logistics

Transshipment is a central logistics process that describes the change of means of transportation on the shipping route, for example from truck to ship. It is increasingly being carried out mechanically or automatically in order to optimize the transport chain and save time. Technologies such as robotics and artificial intelligence are crucial here. Efficient handling not only ensures safe onward transportation, but also reduces transport costs in the long term. Precise coordination of time, technology and qualified personnel is essential for a smooth process. Modern software solutions support this efficiency by optimizing planning and monitoring processes and identifying bottlenecks at an early stage. Continuous training of employees is also important to ensure that they are able to handle state-of-the-art technologies.

Sustainability is also becoming increasingly important in the handling process. Companies are increasingly relying on environmentally friendly technologies and energy-efficient logistics centers, which not only strengthens the company's image, but also saves costs and improves adaptability to legal requirements. By using resources responsibly, companies are making a valuable contribution to environmental protection for future generations, which also saves costs and improves their ability to adapt to legal requirements.

Description of crosss docking centers

A cross docking center is a warehouse where goods are temporarily stored and subsequently distributed. The storage of goods in a cross docking center is usually only of short duration. The goods are only taken up for a short time and loaded or shipped from one means of transport to another. Therefore, in contrast to other types of storage, the cross docking center has only temporarily stored goods or products. Accordingly, it is a kind of interim storage until the next onward transport. In a cross docking center, goods are therefore only stored temporarily for a short time in order to shorten delivery times. They are usually used by companies that have a high turnover rate of their goods.

Cross docking centers are usually used by companies that have a high turnover volume and short delivery times. It is used when delivery times are short and warehouse size is limited. Cross docking centers are often used in combination with other warehouse types to optimise the supply chain. The turnover rate is usually very high in a cross docking center. Cross docking centers are usually set up and operated by trading and industrial companies. The appropriate choice of location for a cross docking center is of importance for smooth operations. The requirements for warehouse size and land prices are usually lower than for other warehouse types. The primary purpose of a cross docking center is to distribute goods between the manufacturer and the customer or sales market.

Cross docking centers have the advantage that they shorten the supply chain and increase the turnover rate. Disadvantages are the low flexibility and the complexity of the organisation. Moreover, they require a high turnover rate.

Areas of application of a cross docking center

This type of warehouse is operated by logistics service providers and trading companies. Especially for trading companies, cross docking centers are becoming increasingly important. Manufacturers deliver their pre-commissioned goods for the individual branches to a central warehouse of the retail trade for a certain region. From there, the goods sent by the various manufacturers are re-picked and loaded for the respective branch (cross-docking). This means, for example, that large truckloads arrive at the central warehouse of the trade and are loaded onto much smaller units. In this way, transport costs can be saved. Customer requirements in terms of the distribution areas to be covered are constantly increasing and this at economically favourable conditions. In order to guarantee this, a network or combination of hubs and depots of cross docking center / warehouses is necessary for logistics service providers to use synergy effects between the partners.

In a conventional warehouse, goods and stock are stored until they are sold or delivered. In a cross docking center, on the other hand, goods are put into and taken out of storage almost every minute ("stockless warehouse"). This is also referred to as an intermediate warehouse. The focus here is not on storage capacity, but on a high turnover rate or turnover speed.

A cross docking center is used for different purposes. For example, it is always used when the means of transport has to be changed for further transport. For example, from a ship to a truck. Therefore it is sometimes also called transshipment warehouse. Cross docking centers / warehouses are used by supermarket chains, among others. Other areas of application are also conceivable.

Because of the short loading distances, the storage height and hall depth of a cross docking center / warehouse are relatively low. In addition, it has a large open area or a paved plot of land. The storage capacities, on the other hand, are of secondary importance. A cross docking center only requires a low storage height (of approx. 5-9 m UKB) and hall depth (because of the short loading routes). The warehouse is equipped with many gates and ramps, these can be placed on two, three or all four sides of the hall. A large open space or paved area around the hall is required to ensure smooth operations. A good hall floor is required inside the cross docking center so that the high forklift traffic is not disturbed.

The advantage of cross docking centers is that they shorten the supply chain and increase the handling speed. Disadvantages are the low flexibility and the complexity of the organisation. Moreover, they require a high turnover rate.

Advantages of a cross docking center

• No inventory and stockpiling costs
• Exploitation of economies of scale in transports

Disadvantages of a cross docking center

• Longer delivery times
• High land and property consumption
• Requires favourable land prices