Cross-docking is one of the warehouse logistics industry’s most important yet underutilized practices. Cross-docking is a logistics procedure involving directly distributing products from a supplier or manufacturing plant to a retail chain or customer. It comes with little to no handling or storage time.
In most cases, Cross-docking occurs in a distribution docking terminal. A distribution docking terminal typically features trucks and inbound and outbound dock doors with limited storage space. Cross-docking is the process of receiving products through an inbound deck and transferring them to an outbound deck.
When is Cross-Docking a Good Idea?
It’s important to understand that cross-docking is not a good option for all warehouse needs. There are only some instances where this process will boost costs, productivity, and customer satisfaction for a certain business.
Cross-docking may make sense if your business sells food or other temperature-controlled items that must be transported as quickly as possible. Also, cross-docking may be a viable option if your business sells products that are already packaged and sorted so they can be delivered to a certain customer. In addition, if you’re hosting a crowdfunding campaign or e-commerce sale, cross-docking will likely be the most effective way to deliver your items to the end user.
Benefits of Cross-Docking
Cross docking offers a variety of benefits. Some of the most noteworthy ones include:
- Reduces the need for square footage: Since there is little to no storage in cross-docking, only a small amount of space is needed.
- Minimizes the risk of product damage: Due to the lack of storage and minimal handling in cross-docking, the risk of damaged products and the costs associated with them are drastically reduced.
- Saves labor hours: Rather than loading or unloading several trucks daily, one truck will arrive with a single shipment from multiple suppliers, saving you labor hours.
- Saves shipping costs: Since cross docking consolidates incoming and outgoing shipments, your business can save on shipping costs.
- Adds value to customers: Cross-docking provides expedited orders, lowers costs, and reduces the risk of damaged items, adding significant value for your customers.
Cross-docking is truly changing the warehouse logistics industry for the better. When used in the right situations, cross-docking is the fastest and most reliable method for shipping products from one location to the other. You’ll receive increased efficiency, cost savings, and value by using cross-docking to your advantage.
Contact Amware to Learn More About Cross Docking
If you would like more information on how your business may benefit from cross-docking, contact Amware today.