Cross-docking reduces the time and labor
costs of shipping inventory. It also cuts down on damage and deterioration of products because the products do not have to go through multiple warehouses. This is especially beneficial for companies that deal in perishable or seasonal products.
Typically cross docking services are most effective for locations close to seaports. Incoming truckloads are quickly transferred to outbound trucks where they can be repacked and reviewed before heading to their final destinations. This process saves time and money for businesses that ship a large volume of products.
The automobile industry has been using cross-docking for decades. It allows them to ship products right to their customers. Just in time deliveries are essential in the industry, as inventory stock needs to be delivered as required. Another example is the chemical industry, which has specific storage needs and expensive transportation costs. By using cross-docking, such compoanies can ship chemicals directly to their customers, thereby cutting down on space and labor costs.
The benefits of cross-docking extend far beyond reduced storage costs. In addition to reducing costs, cross-docking also increases productivity and eliminates the need to store inventory in multiple warehouses.