Cross docking is a strategy used in warehouses and delivery terminals to make supply chain management easier. When used correctly, it can make delivery times faster and simplify warehouse logistics, so that the entire supply chain process operates more efficiently. However, there are some potential disadvantages to cross docking that make some companies to question if it is the right solution. The amount of management required for smooth cross docking and the capital demands necessary to start a cross docking system concerns some customers. Do the advantages outweigh these concerns? The answer is yes for most customers. Here is a look at some of the benefits of cross docking.
Reduced the Need for Warehouse Space
When cross docking is in use, shipments are unloaded from the supplier’s truck directly into the customer’s truck across a warehouse terminal dock. Because of this, it is not necessary for a shipment to first be unloaded and then stored in the warehouse, in order for it to be pulled from the warehouse and loaded into a customer’s truck. This cuts down on warehouse space needs and the cost of warehouse storage for suppliers. This also completely eliminates the expense of order picking.
More Environmentally Friendly Supply Chain
Cross docking cuts down on inefficient shipping methods, such as trucks carrying loads with only small amounts of inventory. Cross docking makes is easier to put products going to similar destinations in the same load, so every truck journey accomplishes more. In addition to making shipping costs more affordable, this also makes the process more eco-friendly, since it maximizes the usefulness of each load.
Faster Deliveries
The biggest benefit of cross docking is that deliveries can be made more quickly. The process of transferring from one truck to another is much faster than picking orders, and the products can be screened for quality during the process. This means that customers get their goods faster and that there are fewer quality issues that require customers to return items and wait for new shipments.
Xcel Delivery Services is pleased to provide cross docking as part of warehouse and delivery services. Get more information about our delivery options in Phoenix by calling (602) 368-1300.
