Cross-docking is one of a number of supply chain techniques designed to drive down inventory, improve warehousing space utilisation and improve the effectiveness of delivery fleets.

Cross-docking involves products that have either been pre-assembled at another warehouse or manufacturing facility or are supplied direct from supplier either locally or from overseas and are transported to a cross-dock facility at a location geographically closer to the final delivery point. In some cases the cross-dock facility may be located in an area where there is easy access to the main delivery area.

Liquex Logistics undertakes cross-docking operations at its Melbourne Logistics centre in Sunshine Victoria. These operations are characterised by multiple deliveries from various supplies being consolidated "across the dock" and sometimes integrated with other orders for onward delivery to retail outlets. The process takes place generally in the early am hours without stock going into warehousing or storage facilities.

Many different categories of product are suitable for cross-docking - slower-moving lines, fast-moving bulk products ,food and beverage, or product lines where deliveries are skewed geographically.

With slower-moving lines, cross-docking is appropriate where it is more effective to hold stock at a single location rather than duplicate stockholdings at every regional distribution centre. This not only reduces expensive warehousing space throughout the supply chain, but also releases the capital that's tied-up in duplicate stockholdings.

With fast-moving products, the use of cross-docking means that retailers are able to operate with minimal stock. Product handling is also minimised from the point of manufacture to the end-consumer, which reduces the possibility of damage and reduces fixed labour costs.

Liquex Logistics also specialises in the consolidation of beverage products for the wine and spirit markets Here retailers can benefit from lower costs through the sharing of common facilities managed by Liquex Logistics.

Transport utilisation is another area that can be optimised by cross-docking. For example, fleets can be utilised during the day for deliveries to retailers and deployed at night for the transport of the pre-assembled orders from source to the other regional distribution centres.

To successfully merge different product streams like this, while meeting time-critical delivery windows, cross-docking demands detailed and highly accurate planning processes, along with effective communications and the flexible use of resources. Volume fluctuations, supplier performance, warehouse delays and traffic congestion can each have an impact on the all-important service to the consumer. Liquex Logistics has the skills and experience necessary to react rapidly to these dynamics.