Cross-docking in supply chain management

Cross-docking in supply chain management

Cross-docking does not involve the storage of pallets, instead, the freights are directly delivered from producers to the customers. This service involves the hub and spoke model. 

It is a logistics strategy incorporated to move the freights in an effective manner in less time. In short, cross-docking doesn’t include warehouse storage. 

This method receives products from the inbound dock and transfers them into the outbound dock. Thereby reduces the storage and inventory handling costs.   

Unlike the traditional dock service, cross-docking is an upgrade in the supply chain management process. Although it’s not a regular shipment procedure, it is efficient in many ways. And here’s why you must opt-in for this methodology.

1. Cost reduction

cross dock warehouse

Cross-docking in supply chain management involves lesser labours. The shipment takes place directly from the manufacturer to the customer or retailer. Hence you need not pay for the extra process to that of traditional goods shipment.

2. Time-saving

cross docking logistics

It is an efficient process because it reduces not only the warehousing cost but also time. Product screening is quickly done. It leads to the dispatching of goods at the customer’s doorstep in an organized manner without any hassle.

3. Minimal risk in cross-docking storage

This method involves less or no inventory handling risks when furnished. Traditional warehousing is bound to handle environmentally hazardous substances, burglary, theft etc. 

4. Increased efficiency

By organizing the shipment staging area, the efficiency of the cross-dock logistics improves. The method is ideal in the supply chain consists of the goods-in and goods-out doors on the same dock.

5. No warehouse required in cross-docking logistics

No storage of freights and inventory handling is required for this particular technique unlike in traditional warehousing. The cross-docking method promotes a very streamlined process.

6. Easy consolidation and deconsolidation

Similar items that are yet to reach the same location are kept together so that they can be dispatched easily and quickly. Thereby it’s a win-win for both the business as well as the customer. 

Transportation cost is greatly reduced because of the consolidation of several items together.

7. Less inventory damage

cross docking in supply chain

Usually, the shipment of freights involves a lot of processes in between. As far as cross-docking logistics are concerned, the damage of inventory handling is less likely to occur. Because of the streamlined shipment procedure, the damage is reduced to a great extent.

8. Less labour requirement in cross-docking logistics

More labours are required when the products are stored in the warehouse for operations like handling of machines and preservation of freights. 

In the case of cross-docking, labour requirements are very less as it is a straight forward process. The products are arranged and dispatched in bulk to the destination.  

9. Frequent deliveries

Because of the proper consolidation of products, delivery of products happens in a rapid fashion. Customers receive their goods quickly. Hence the payment transaction also takes place rapidly which is essential for retailers.

10. Reduction in inventory levels

There is a minimum need for inventory for cross-docking of goods unlike in traditional warehousing. Thus this reduces the chances of any kind of damages to the goods.

11. Rapid product flow

Cross-docking logistics involves the sorting of goods in large quantities and are dispatched together to the destination. Delivery time is reduced when the transportation of freights occurs using cross-docking in supply chain management. 

This saves time, money, and resources altogether. It promotes customer satisfaction by effective usage of time. Thus more people will come back to buy from you.    

12. Quicker payments to suppliers

If you are a supplier or distributor, you are going to benefit by getting quicker payments for dispatching of freights. Whereas if you are a customer, you will receive your goods in a short span of time. 

Having said that, if you think the cross-docking of goods is right for you, then reach out to us!

We have a team of experts who takes care of cross-docking logistics from acquisition to delivery of freights. 

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Phone: 044-71119400