Grant Agreement number: 314786

Project acronym: ECOHUBS

Project title: Environmental CO-herent measures and environmental interventions to debottleneck HUBS of
the multimodal network favoured by seamless flow of goods
Funding Scheme: Collaborative project

Best Practices in Cross Docking in Europe

WP 1.2 Industry consultations

WP 3.2 Integrated Competitive Services
WP 3.3 Measuring and Benchmarking System
WP 7 Dissemination

Project co-funded by the European Commission within the Seventh Framework Programme (2007-2013)
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PU
Public
PP
Restricted to other programme participants (including the Commission Services)
Restricted to a group specified by the consortium (including the Commission
RE
Services)
Confidential, only for members of the consortium (including the Commission
CO
Services)

Document Title:

WP

Best Practices in Cross Docking in Europe

WP1/3/7

Document number:

Main Authors

Org

Steffen Nestler
Dr Thomas Nobel
Feliks Mackenthun

DGG

Contributing Authors

Org

Doc. History

Version

Comments

Date

Authorised by

14/09/23

Number of pages:
Number of annexes:

9
0

Contents
1.
2.

DEFINITION OF CROSS DOCKING .................................................................................................................................... 4

BEST PRACTICES IN CROSS DOCKING IN EUROPE ............................................................................................................... 5

1. Definition of Cross Docking

Cross docking is defined as a procedure where the distribution process from a supplying company or a
manufacturing company to the customer is reduced to no or a minimum storage or handling time.1
This procedure takes place in a special distribution docking terminal. This docking terminal contains trucks
and dock doors on two sides. One side is called inbound, the other side is called outbound side. The
terminal has got a minimum storage space only. Cross docking means the process of receiving products
through an inbound dock and then transferring them across the dock to the outbound transportation dock.
Products transported by trucks/trailers arrive at the inbound dock and are allocated to a receiving dock on
one side of the cross dock terminal.
The following diagram shows the procedure of cross docking.

Inbound

Outbound

Cross docking terminal

Figure Cross docking warehouse procedure (Source: DGG)

When the inbound transportation has been docked at the inbound door, the goods can be moved directly
or indirectly to the outbound dock and then to outbound destinations. It is also possible to unload and sort
the goods and to move them to the other end of the docking terminal. This handling can be done by
forklifts, conveyor belt, pallet truck or other means of transportation. The next step is the way from
outbound dock to the customers.
Cross docking reduces handling time and costs. It is used in different types of warehouses and therefore
different branches. For example, it can be seen in food supply where temperature controlled products have
to be moved quickly. Furthermore, already packaged and sorted products ready for transportation to a
particular customer can become a faster and more efficient process through cross docking.
Cross docking offers advantages when a central location is needed to sort products and to combine them to
deliver these to multiple destinations. It is also implemented when many small loads shall be combined to

See: http://www.sciencedirect.com/science/article/pii/S136655450500013X

one transport to save costs by optimizing the capacity utilization. Cross docking terminals can also be
installed for break-down of big loads to small loads to be delivered to a special market.
Three types of cross docking can be considered:
1. Fully packed pallets go in to the warehouse and are delivered in the same arrangement to the
agencies/customer;
2. Several pallets with specific products are consigned to packages which include the products the
agency needs;
3. Already consigned pallets or packages arrive at the center and will be handled only and delivered to
the specific agency
This system requires that the processes are adjusted perfectly. The information flow between producing
company, the warehouse and cross docking center and the agency has to work smoothly. The wrapping has
to be standardised. Transporting companies have to be on time. There have to be enough doors for
inbound and outbound processes as well to avoid congestion. The ingoing products shall be handled
automatically.
The system helps improving efficiency and effectiveness regarding stock-keeping. The agencies need less
stock which does not mean that the quality of supply decreases or empty shelves occur because. The cycle
time of goods decreases too.2
The importance and number of cross docking centers will increase due to the increase of same day
deliveries and due to optimization of efficiency. First aim is the minimization of warehouse capacity and
transaction costs.3

2. Best Practices in Cross Docking in Europe

This chapter shows some Best Practices of Cross docking in Europe. There exist different needs regarding
warehouses and the examples show where Cross docking can supply the companys needs.
The automotive sector is characterized by fast transportation processes. The procedure of just-in-time or
just-in-sequence are well-known in this branch to reduce storage capacity and costs.
Cross docking offers advantages for car manufacturers too. The German car manufacturer BMW AG has
implemented cross docking terminals in the south of Germany.

Best Practice BMW AG / Kuehne + Nagel

The logistics company Kuehne + Nagel (http://www.kn-portal.com/) is operating logistics centers for BMW
in Germany. In August 2012, K+N expanded their logistics center in Wrth (Bavaria) by additional 50,000
sqm. In total, the center has got 95,000 sqm area size. The plants in Dingolfing, Landshut and Leipzig are
being supplied by Wrth. Kuehne + Nagel organises the transportation services between the supply center
and the BMW production sites.

2
3

See http://www.business-wissen.de/artikel/lagerhaltung-aktionsfelder-fuer-bevorratung-und-umschlag/
See http://www.heuer-dialog.de/insight-2013-04-Logistikimmobilien-E-Commerce

Additionally, the logistics company is in charge of warehousing services, sequencing, the

commissioning of components, reverse logistics, customs clearance and various security
tasks. This supply center is used as a cross-dock to supply all Bavarian BMW plants. The
cooperation between BMW and K+N exists since 1999. K+N is operating logistics centers
with a total area of 230,000 sqm for BMW.4
K+N is one of the biggest logistics company in Germany and is operating
worldwide. The company has got more than 1,000 locations in more than
100 countries (see www.kuehne-nagel.com for further information).

Best Practice Volkswagen AG / Schnellecke Logistics

Another best practice is the example of the car manufacturer Volkswagen
(http://www.volkswagen.de/de.html). Volkswagen implemented a cross
docking center in Bratislava (Slovakia). Suppliers deliver their products to
this center where the products will be sorted and bundled. The aim is to
maximize the loading factor of the outgoing trucks. These trucks move the
goods to the single plants of company VW then. Different forwarding agencies are in charge for the supply
of the cross docking center. The cross docking center itself is managed by
another logistics company. The distribution to the plants of Volkswagen is
organized by forwarding agencies.
(see:
http://www.verkehrsrundschau.de/autoindustrie-hinterfragt-dasmodell-des-gebietsspediteurs-1373133.html for further information).

Best Practice LeClerc (France)

The company LeClerc (www.e-leclerc.com) is one of the biggest retailers in
France. The company has got 500 sale points and 16 strategic distribution
centres. Four of them dispose of fully automated cross docking systems.
In the LeClerc distribution center fresh goods as fruits, vegetables, dairy products and meat are processed
in air-conditioned buildings. The implementation of a cross docking system in this case means that products
are not stored temporarily but delivered directly to single agencies. This has got a big advantage regarding
fresh products.
One of the important modules of the system is the equipment for sorting 40,000 boxes each day. The socalled Posisorter offers different advantages. The first one is the reduction of up to 50% of manual
processes. The second one is the triple flow rate per sqm in the centre. The system also guarantees 100%
quality regarding correct supplies. It also offers a comprehensive management of tracking and tracing of
goods.

http://www.dvz.de/rubriken/logistik-verlader/single-view/nachricht/bmw-restrukturiert-die-wareneingaenge.html

Best Practice Logwin / Douglas

The logistics service provider Logwin is operating a new cross docking center in the Western region next to
Stuttgart since 2010. User of the center is the perfume selling company Douglas
(https://www.douglas.de/douglas). This center offers also some other value
added services. About 80 agencies are supplied by this cross docking center.
Each ingoing package will be unpacked, scanned, priced and protected if
necessary or obligatory. Then, the products will be put into reusable boxes.
The products will be sorted so that the right products will be next to each other in the shelf in the shops.
The agencies get the boxes which are allocated to a special shelf and not mixed. This is a big advantage for
the agencies to fill up their shops with new supplies. The agencies get boxes instead of partial shipment.
It reduces storage costs and saves time. This time period can be used for providing customers in the
agencies. The company Logwin is a logistics service provider which employs more than 5,500 people in a
worldwide market.5

Best Practice Trinks GmbH

In the sector of food logistics, especially logistics of beverages, the
company trinks GmbH (http://www.trinks.de/) buys non-alcoholic
drinks and beer from their suppliers and stores these products at their
plants. This describes the usual way of processing.
In contrast to this the products will be purchased and arranged at the assigned loading zones. Together
with the beforehand allocated consignments from the trinks core product line the whole arrangement
will be delivered.
The advantage for the customer is to be seen in having only one contact person and therefore reduction of
process steps. It also reduces costs of storing.

Best Practice Alcaro Invest GmbH / Emons Spedition GmbH

In the Freight Village of Berlin South (Grobeeren) sold another project
called ALCARO Logistikpark Grobeeren III (www.alcaro.de) to the real
estate fund Henderson German Logistics Fund in 2013. This object is a warehouse which does not have
support columns. It has got 54 doors and a size of about 6,400 sqm of storage
space and 1,200 sqm for offices. The logistics company Emons Spedition GmbH
(http://www.emons.de) is the main tenant of this warehouse. Emons is
operating on a worldwide level.

See http://www.logwin-logistics.com/de/news/pressemeldungen/detail/logwin-betreibt-neues-ersatzteillager-fuerdeutschen-automobilhersteller.html

Best Practice Post CH AG

The Swiss Post company (http://www.post.ch/) is operating a cross docking center
for different clients. By using intelligent information systems goods arrive at this
center from different producers at the same time. The goods can be assigned to
one or more recipients. The company Post CH AG checks the inbound goods, does quality control and
repacks the products then. The goods for a specific recipient are allocated at one place in the center.
One example is a trading company which sells electronics in Switzerland. DVD recorders are supplied by a
company which produces in Ireland. The same producing company delivers blu ray players from their plant
in Portugal too. Two other producing companies deliver their MP3 players and digital cameras as well at
the same time. The Post CH AG then arranges the shipments for the single agencies in Switzerland within
24 hours usually.
Due to this cross docking center the producing companies save their own central warehouse.6

Best Practice HAVI Logistics / Ba-Ha-Mas Ltd

Another example of food logistics is the supply of the zoo of Budapest with fishes for the penguins. The
company HAVI Logistics (http://www.havi-logistics.com/) and its daughter company STI Hungary took over
the delivery of this zoo.7 8
The supply chain starts at the terminal at Riga in Latvia. The transport goes
to the cross-docking center of the mother company HAVI Logistics in
Warsaw (Poland). It is done with multi-temperature-managed trucks. From
this point in the supply chain the goods are delivered to Budapest then.
The transport time is about 3 days in total.

Summary
Cross Docking is a helpful instrument for shortening the delivery process and for reducing warehouse
capacities. Both aspects have benefits regarding costs and efficiency. Many current examples show the gain
of importance of this approach in the logistics sector. For specific branches the implementation makes
sense as described in the examples before.
In the context of the project EcoHubs the usage of the cross docking approach is one instrument to
optimize supply chains. Logistics hubs / centers should therefore integrate and push the idea of cross
docking centers.

See http://www.post.ch/post-lagerlogistik-crossdocking for further information

See http://www.inar.de/damit-pinguine-satt-werden/
This example focuses on food logistics for animals. It is integrated to show the concept of cross docking to the
successive generation.
8

Supplier / Manufacturer
Before

Incoming

Supplier / Manufacturer

Customers

Sorting
After

Outgoing

Supplier / Manufacturer

Cross-Docking
Inventory

Customers

Customers

Figure Cross docking approach (Source: own diagram according to Trinks GmbH)