The Benefits of
Cross-Docking
Cross-docking - the practice of receiving product and
immediately shipping it out without putting it in a warehouse - is increasingly
valued by companies in fast moving industries, because it allows products to reach destinations
faster and more economically. It’s also
used by industry leaders, who have recognized the roll cross-docking can play
in delivering just-in-time services.
Cross-docking is on the rise, according to the 2011
Cross-Docking Trends Reports. More and more
companies are finding added value in the practices ability to lower costs,
manage inventory, accommodate customer’s demands, and increase transportation
efficiencies.
There are several methods of cross-docking. For instance,
products can be received and then immediately loaded outbound without being
placed in the warehouse. They also can be received and staged on the dock, and
then be loaded outbound later. Another approach is to receive products,
reconfigure the shipment, and then stage on the dock for an outbound later.
By eliminating the put-away process, companies reduce
warehouse requirements and inventory levels.
They also consolidate freight to reduce transportation costs and improve
product availability. Given that demand
is increasingly volatile, it comes as no surprise that cross-docking continues
to gain favor. Indeed, companies increasingly implement cross-docking as a
means to reduce costs, manage inventory levels, increase efficiencies and
accommodate unpredictable customer demand,
Cross-docking has increased significantly in the past three
years. The survey completed by The
Cross-Docking Trends Reports shows an increase of 16.5% in three years. 68.5% of the companies surveyed are currently
cross-docking. Cross-docking is a viable
strategy for adapting to current economic times.
The biggest benefits of cross-docking are reducing
transportation costs, consolidating shipments, and overall improvement in
service. More and more companies are
recognizing the value and are looking to outsource the cross-docking service.
There are considerable savings for those doing the
cross-docking. Since products aren’t actually put-away, companies reduce on
warehouse labor. Furthermore, by consolidating LTL shipments into full loads,
companies are able to improve transportation efficiency and reduce their fuel
costs. See More...!
