Today’s marketplace is moving faster than ever, and companies are challenged to distribute their products more quickly, efficiently and cost-effectively; cross-docking can be a useful tool to help keep pace with customer demand.
While cross-docking is not a new phenomenon, this process of moving material from the receiving dock straight to the shipping dock is gaining traction as more companies recognize its value in today’s competitive business environment.
Why Cross-Dock?
Companies choose to cross-dock for a variety of reasons.Common benefits include:
Increased speed to market – With high turn rates and reduced handling, cross-docking helps to increase efficiency and get products to market faster. While typically associated with durable goods, cross-docking can be effective for temperature-controlled, perishable and high-value/high-security products as well, thanks to its high velocity.
Reduced costs – Cross-docking requires a smaller footprint than traditional warehousing and often utilizes less labor as well. The practice also eliminates the cost of inventory and product rotation. Considerable freight savings can be achieved by consolidating LTL shipments into full loads.
Improved service levels – Because product is shipped in bulk and picked at the cross-dock, the practice offers great flexibility for changes to orders further down the supply chain. This helps to ensure a more accurate – and more responsive – process with shorter order cycles.
Prime Candidates for Cross-Docking
Just about any type of product can be cross-docked, but cross-docking is particularly effective for companies that are moving heavy volume on any given day and need to do it in a precise way where service is critical.Read more at Capitalizing on Cross-Docking
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