Accelerated logistics and reduced effort in logistics - thanks to Cross Docking. This modern logistics system is particularly effective for large orders and is currently being deployed very successfully at Metro Cash & Carry. 
What is Cross Docking?
Cross Docking is a good’s distribution process in which pooled orders are distributed to the branches via one terminal – the so-called transshipment point – without intermediate storage. Cross Docking, or transshipment, is a modern logistics system designed to reduce costs and time taken for the shipment of goods, cut out intermediate storage and avoid transporting incomplete loads.
One system, two versions
Cross Docking is applied within METRO Group by Metro Cash & Carry in two versions: as a one-level (Cross
Docking 1) and a two-level (Cross Docking 2) process.
Docking 1) and a two-level (Cross Docking 2) process.
- Cross Docking 1 refers to merely bundling shipping units for transport. Orders issued by stores are passed-on to suppliers one-to-one. Suppliers pick goods according to the store’s orders and draft delivery notes and invoices for the goods picked. These individual orders are then pooled into one and sent to the transshipment point where logistics companies take over the distribution to the individual stores, and bundle the order together with other orders for each particular store. The processes are supported by providing advance or accompanying information and goods labeling – via DESADV and NVE.
- In Cross Docking 2 suppliers receive an overall order summarizing the orders of the individual stores. They transport the ordered goods to the transshipment point as one big delivery where, in contrast to Cross Docking 1, the goods are repacked onto pallets with other goods for the same store. Logistics companies then deliver the goods to the respective stores. An advantage for the customer and supplier: There’s only one order or delivery per day or per week. However, this system puts a great amount of demand on the logistics partners, the so-called Cross Docking Providers.
Example of Cross Docking 2: Consolidated Delivery
In contrast to Cross Docking 1 in this version all 60 Metro Cash & Carry stores send their orders to to the Metro central server via Electronic Data Interchange instead of directly to the vendor. This server pools all orders which are then transmitted to the manufacturer as one big order via EDI at an arranged time. The manufacturer packs all ordered goods onto palettes, without marking them for specific stores. The goods are then transported to the Cross Docking terminal in Unna. Varena staff then take over distributing the goods to the stores – according to their demand. Varena has been an MGL Warehousing location since January 2005.
Two-level Cross Docking differs from the one-level version in terms of stock picking in the Cross Docking center. The shipment is then manually allocated to the respective stores.
Two-level Cross Docking differs from the one-level version in terms of stock picking in the Cross Docking center. The shipment is then manually allocated to the respective stores.
