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You may be one of those who are already typing ‘Cross-docking warehouse near me’ on Google to find a suitable cross-docking warehouse near you or are partially aware of the term. Whatever may be the case, cross-docking is indeed an ultimate supply chain strategy.
An organization’s growth is significantly dependent on how efficient its supply chain is. Considering speed and productivity as the parameters of a successful supply chain, cross-docking can be the supply chain strategy you were looking for. No doubt, if implemented at the right time, it can measurably improve the shipment handling time.
However, not every one of you would know the in & out of cross-docking logistics. This is why in this article we are going to discuss a lot about cross-docking logistics that include:
So, let’s get started.
Cross-docking is a logistics process wherein the goods from the manufacturer or the supplier are shipped directly to the customers without the investment of any storage or handling time. Technically, we have an inbound dock from where the products are received and an outbound dock from where the products are transported.
In between, we have a docking terminal, where cross-docking takes place. While it needs the commitment to time, it can be the best supply chain strategy for saving time & money and keeping the customers happy at the same time.
There are mainly five types of cross-docking warehouse examples/types to suit the different kinds of shipping types:
1. Manufacturing Cross-Docking
Involves supporting and gathering of input sources for helping the schedule underway.
2. Distributor Cross-Docking
Involves collection of input items from multiple providers into a bed of mixed things.
3. Transportation Cross-docking
Involves joining shipments in little packages for financial benefits of scale (i.e., Economies of scale) or from several LTL (Less-Than-Load) structure transporters.
4. Retail Cross-docking
Involves taking items from various providers and arranging those into yield trucks for several retail locations.
5. Opportunistic Cross-docking
Involves moving of an item directly from the receiving region to the transportation territory for meeting a referred to need.
1. Cuts inventory costs
Storing, managing, counting, securing, and getting the inventory insured costs money. Not just that, you lose money when excess inventory gets damaged or spoiled. Through Cross-docking you can reduce the number of goods held over the long term.
2. Condenses storage space
By using cross-docking you can reduce the storage space and so the money wasted. Otherwise, on average $6.53 is spent by businesses for every square foot of warehouse space. Moreover, the decreased storage space also contributes to diminishing your company’s carbon footprints.
3. Reduces material handling
Some very crucial inventory handling is required in traditional warehouse operations such as sorting, storing, picking, and packing. However, Cross-docking lessens the movement of goods around the warehouse whether automatically or manually.
4. Cuts labor costs
Labor costs are one of the most significant costs involved in logistics and are difficult to control. With cross-docking, you don’t require a large number of people needed for managing inventory. The money saved through this can be utilized for other process improvement activities.
5. Decreases damage from material handling
Sometimes, these are not the bumpy roads that cause damage, and the damage is also caused due to improper material handling. However, since the cross-docking reduces the movement of goods, the likelihood of damaged goods is reduced as well.
6. Cuts overall fixed costs
Warehouses not only involve costs related to storage space but also various other fixed costs such as equipment, utilities, etc. When the area of storage space is reduced, the capital spent on lighting, heating, equipment, etc. is also reduced.
No doubt executed the right way under the right conditions, cross-docking is sure to keep your business ahead of the curve as several factors come together to not only cut your bottom line but also deliver results quickly. Through cross-docking, you can transport merchandise faster, cut warehousing costs, and limit dangers related to specific items.
Unlike the traditional facilities that demand money and land to operate, cross-docking helps you carry out your logistics activities affordably and conveniently. All you should know is how to manage cross-docking well and how to stay committed to the time.
21 January 2022
