[muglo] folders in the dock

My dock is getting so crowded, there's scarcely room for one more
program alias. I remember that about six months ago or so, MacWorld had
a tip on how to organize Dock aliases within folders according to
function (or I suppose by any other criterion), but I don't remember
the method, can't find it online and have had no luck trying to
improvise a procedure. Can anyone tell me how to do it, please?
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