Cross-docking technology is one of the ultimate solutions for lowering transportation costs. Big brands such as Nike, Walmart, Amazon, and others have successfully implemented this strategy in their work process. The method is well-organized, regulated, and progressive, which benefits businesses.
The cross-docking system helps companies reduce the warehouse costs by 30-35%. Operating a warehouse is costly as businesses need to invest in the warehouse space, labor, and management. Cross-docking doesn’t require warehousing or minimizes the need, significantly reducing transportation costs. However, the benefits don’t only refer to cost savings. The method speeds up the delivery process, allowing the consumer to have the goods quickly. This method enables fast shipping, which increases consumer satisfaction. This article explains more about cross-docking and its suitability for your business.
Cross docking explained
Cross-docking is a logistics strategy where the goods are shipped from the warehouse, and the final delivery process is very well managed. The operations within the supply chain will eliminate the need for warehousing and speed up the delivery process. It can also be defined as direct shipment transferred between vehicles and carriers. Cross-docking simplifies the transportation process and reduces delivery times.
In the consolidated cargo industry, this method includes moving the freight from one vehicle to another without storing it in warehouses. As for the retail sector, cross-docking streamlines the process by consolidating the goods. The incoming shipments are sorted and stored until transferred to the outgoing transport.
Why do businesses decide to implement cross-docking? Because they can use their warehouse space for other purposes, such as extending the product lines. Also, the process allows them to transfer the goods from a shipping container to several smaller vehicles. Also, goods from various warehouses can be sorted and consolidated.
The cross-docking method is used for processing small batches, high-turnover products, goods with predicted demand, and perishable goods.
Types of cross-docking
When you search the option cross-docking warehouse near me you should have to pay attention to the two types of cross-docking service.
Pre distribution cross docking
With this type, the staff receive the goods, and they act according to the distribution instructions. The method is perfect for retailers that manage their warehouses.
Post distribution cross-docking
This method stores the goods in a warehouse until the next step is known. The business will identify the demand and find the customers.
Optimizing the supply chain for businesses
Food businesses work with perishable products that require tight delivery deadlines. Pharmaceutical companies also need timely delivery, and the products must be transported under controlled conditions.
In e-commerce businesses, the two most common challenges are shortening the delivery time and lowering the shipping prices. These businesses have high-volume orders, making them the perfect candidates for cross-docking. The automotive industry’s biggest challenges are reducing warehousing costs and spending on delivery.
Automation in cross-docking
In cross-docking, a greater volume of freight is processed than in traditional logistics methods. Automation helps manage the whole process, providing real-time data. It helps track shortages, discrepancies in demand and stock, and damage. Warehouse management systems will notice problems and help companies notify their clients about potential deviations. Sorting and packaging goods can also be done with automation technologies to streamline the whole process.
Final thoughts
Cross docking helps businesses speed up delivery time and cut costs by eliminating the need for warehousing. Advanced technology and automation drive the logistics industry forward, streamlining and optimizing the processes.
