Work out cross docking saving instantly with clear inputs, formula shown and shareable results.
Cross-docking replaces putaway, storage and picking with a single handling movement from inbound to outbound dock. The saving per pallet is the storage cycle cost less the cross-dock handling cost, and it only applies to volume with matched inbound and outbound timing.
Pallets cross-docked
Cross-docked = Annual volume x Share suitable %
Annual saving
Saving = Cross-docked pallets x (Storage cycle cost - Cross-dock handling cost)
Predictable demand, pre-allocated inbound loads, and tight inbound-to-outbound timing. Anything requiring pick-and-pack from bulk is not suitable.
A late inbound load leaves the outbound vehicle waiting or short. Cross-docking removes the inventory buffer that hides supplier unreliability.