CROSSDOCKING

  • Shipping small partial loads destined for the same region as full truckloads saves loading and truck costs.

  • Full truckloads are cross-docked in the destination region saving trucking costs without sacrificing transit time.

  • Added cross-docking costs are outweighed by the savings of shipping truckload versus partial.

Crossdocking may be considered when multiple partial shipments to a common geographic area must be made saving overall logistics costs.  In this example:

  • Shipments to four customers in the same geographic region are scheduled to ship and deliver within two days of one another.  Total cost of logistics is $2640

    • $2400 in truck cost ($600/shipment for each 2000lb shipment)

    • $240 in locating, scheduling, cutting BOL’s, loading and unloading four trucks ($60/truck)

  • Four separate 2000lb loads are aggregated into one 8000lb truckload shipment which is then cross-docked and delivered right in the customer’s region.  Total cost of logistics is $2160

    • $900 in truck cost to ship the 8000lb load to the cross-dock

    • $100 to locate, schedule, cut four BOLs, load and unload one truck and schedule crossdocking

    • $160 to cross-dock four loads in the region (16 pallets at $10/pallet)

    • $1000 to make final delivery to each customer ($250/shipment for four 2000lb shipments)

$480 - TOTAL LOGISTICS COST SAVINGS