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What is cross docking?
What is cross docking? Is it also considered warehousing?
Cross Docking is an operations where the the goods arrive to the warehouse, get sorted accordingly, and outbound processed. All this happened within a short span of time (as short as same day outbound, or within 2-3 days).
In such a facility, the sortation area typically is huge. And the storage area is minimal. This is different from a typical storage warehouse, where storage area accounts for 60-70% of the space.
However, it is still possible to term such facility as warehouse. Probably a cross-dock warehouse will be more appropriate.
Can someone provide some examples of cross dock operations? So that I can understand better?
An example will be fresh food from a neighboring country arriving in the night. Sortation is done by the operations and by morning time, the various trucks/vans will depart the facility for delivery to the destination locations.
In this case, storage is minimal. Rather, the main activity is sortation.
Cross docking is a procedure where products from a manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time.