Cross-Docks: The Optimum Solution To Transport Challenges

The growing interest in groupage transport and the desire to distribute goods to multiple destinations is leading logistics companies to focus more and more on creating a service that meets these needs. Cross-docks, i.e. transhipment terminals, are a solution for optimising costs and running efficient processes in general cargo transport. Their extensive network is a huge advantage for the operator.

The economic situation, including high inflation and a decline in household purchasing power, has meant that many manufacturers have had to decide to reduce production. As a result, the demand for LTL shipments has increased. “We ship around 8,000 pallets a day from our transhipment depots. At the cross-dock in Lućmierz, which has more than 60 loading bays, we handle up to 3,000 pallets a day and transship around 650 vehicles a day,” says Maja Talarek, Customer Care Senior Manager, FM Logistic CE. At cross-docks, the operator consolidates shipments from different customers and then sends them in one direction, maximising the use of truck space. This allows the operator to offer a competitive price even for small volumes. In addition, if the operator has a sufficiently extensive cross-dock network and runs regular services, consolidation is very fast and enables efficient distribution.

As you can see, thanks to the cross-dock system, even small volumes are handled quickly and their transport is optimised in terms of costs.

Cross-docks form the strong backbone of the national groupage network. “29 cross-docks in Central Europe enable optimal consolidation of shipments and efficient transport to more than 2,000 points per day,” says Maja Talarek. And it turns out that ‘connecting’ transport is no more complicated than direct travel. Once the goods have been collected from the customer, they are taken to the nearest terminal, from where they are routed for linehaul to the transhipment hub. From there, the consignments are passed on for direct distribution to their destinations. This solution benefits everyone: The logistics company makes the best use of its resources, the customer gets a good deal and the whole process results in less CO₂ being released into the environment than if individual loads had been transported.

Cross-docking is used when goods from many locations are delivered to a warehouse and then sent to one recipient, but also when goods from one manufacturer are delivered to many points of sale. “We distribute 60% of the consignments we handle to retail chains,” confirms Maja Talarek from FM Logistic. Orders of this nature require exceptional expertise from the logistics operator. Time and precision are of the essence. This is because deliveries to the retail chains are scheduled in ‘windows’. This means the shipment must be delivered on a specific day and time, usually within a 30–60 minute interval. However, this is not the only challenge faced by the operator serving the retail outlets. There are other situations that require individually planned operations.

Transport, like most services, is constantly evolving, so operators who want to remain competitive need to be open and listen to the needs of the market. “We have a lot of optimised processes that we implement regularly, but when we see that a customer needs a tailor-made solution, we look for it,” says Maja Talarek. One such situation is when LTL volumes are included in general cargo orders, but can hardly be classified as ‘small’. For such customers, an intermediate option is the solution. This is cross-docking of full pallets. “Shipments of more than 30 pallets at a time bypass the sorting facility and go directly from the terminal to their final destinations. This reduces delivery times and the number of transports between terminal and destination,” says Maja Talarek. This minimises costs and provides the customer with a comprehensive transport and logistics service.

Cross-docking is a modern logistics model that enables a more flexible supply chain. This method of distribution eliminates the warehouse, turning it into a transhipment hub, and requires good coordination of all supply chain participants. An extensive network of transhipment terminals shows customers that the company is ready for today’s transport challenges.