Every logistics professional is focused on one goal: to optimize the supply chain by enhancing efficiency. Improving efficiency may mean getting products into the hands of consumers faster, cutting shipping costs, or reducing labor costs—or all three. If you need to improve the efficiency of your company’s logistics, talk to your shipping carrier about cross-docking.
Overview of Cross-Docking
A common supply chain model involves shipping products from the manufacturer to a warehouse for inventorying and storage to the consumer. This supply chain model involves plenty of material handling, as products that arrive at the warehouse must be tallied and stored appropriately. They must then be removed from storage areas and reloaded for distribution to the consumer. Cross-docking eliminates this step in the supply chain. With cross-docking, items are unloaded from one truck to an outgoing truck right away.
Benefits of Cross-Docking
There are many benefits of cross-docking. First, it can reduce costs. Since items don’t need to be picked and stored in the warehouse, there is a reduction in labor and warehouse storage costs. Second, cross-docking benefits the consumer by reducing shipping times and, consequently, increasing consumer satisfaction. This reflects well upon the business. Third, cross-docking can enhance product quality. Since cross-docking reduces the time between production and end delivery, it helps preserve the quality of perishable items.
Good Candidates for Cross-Docking
Many products can successfully undergo cross-docking on their journey to reach the consumer. Some of the most suitable candidates for cross-docking include the following:
- Perishable items such as produce, meats, and dairy
- Pre-tagged products that are ready for sale as is
- Promotional items and items that are getting ready for an initial launch
- Customer orders from another warehouse that are pre-picked and pre-packaged
- Retail “staples” that tend to have a low demand variance
Cross-docking is one of our specialties here at Xcel Delivery Services. No matter how complex your shipping, warehousing, or cross-docking needs are, we have the right fleet and staff to execute your vision flawlessly. You can get in touch with our headquarters in Phoenix by calling (602) 368-1300 or you can track an existing order online.
