What Is Cross Docking and How Is It Used in LTL Shipping?

Cross docking is a technique used in supply chain management where products from a shipper or manufacturer are directly transferred from an inbound truck to an outbound truck with minimal or no handling or storage time in between. The goal of cross docking is to streamline the distribution process, reduce handling costs, minimize inventory holding time, and speed up the delivery of goods to the end customer.

In Less-than-Truckload (LTL) shipping, cross docking is often used to streamline multiple shipments heading to the same destination into a single outbound truckload which can then be delivered to various destinations. Here's how cross docking is typically used in LTL shipping:

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Receiving: Inbound shipments from different suppliers arrive at a cross docking facility. These shipments are typically sorted based on their final destinations.

Sorting: Products are quickly sorted based on their destination or final delivery point. This involves identifying the items that need to be grouped together for each outbound shipment.

Consolidation: Products destined for the same or nearby locations are consolidated onto outbound trucks. This consolidation process helps optimize the use of transportation resources and reduces the number of delivery vehicles needed.

Loading: Once the outbound trucks are loaded with the consolidated shipments, they depart for their respective destinations without the need for intermediate warehousing or storage.

Delivery: Upon arrival at their destinations, the shipments are unloaded and delivered to the end customers.

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By eliminating the need for warehousing and minimizing handling and storage time, cross docking in LTL shipping can lead to several benefits, including:

• Reduced transportation costs by optimizing truckloads and reducing empty miles
• Faster delivery times due to streamlined logistics processes
• Lower inventory carrying costs since products spend less time in storage
• Improved supply chain efficiency and responsiveness to customer demands

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At Roadrunner, all of our 40+ service center locations use cross docking to ensure that your freight arrives on time and damage free.

Cross docking is a valuable strategy in LTL shipping for enhancing operational efficiency and meeting the demands of today's fast-paced supply chains.

Ship Smart. Ship with Roadrunner.