What is Cross-Docking?
What is Cross-Docking?
Cross-docking is a strategy in the transportation industry that involves the direct movement of goods from inbound trailers to outbound trailers. There is very little handling of freight of storage time in between the transfer. The process occurs at a facility called a cross-dock, which is a type of warehouse facility designed to efficiently handle this transfer. Cross-docks are a very common part of the transportation industry and these facilities are found in cities ranging from large transportation hubs to small cities that are located on common routes for trucking companies.
Objective of Cross-Docking
The objective of cross-docking is to reduce the time and cost associated with the standard warehousing and distribution methods. It allows goods to move more efficiently through the supply chain. Cross-docking creates great benefits for companies that need to transport large volumes of freight over long distances, as it assists with streamlining their operations.
Benefits of Cross-Docking
Cross-docking creates extended benefits throughout the supply-chain. Find benefits of cross-docking below:
- Reduced Inventory Costs: Cross-docking allows freight to be moved quickly through a facility, reducing the need for additional warehousing costs.
- Faster Transit Times: Cross-docking allows freight to be shipped more directly to receivers, reducing the transit time needed for delivery.
- Improved Efficiency: Through the reduced need for warehousing and minimized handling times, cross-docking can improve the overall efficiency of a supply chain.
- Reduced Transportation Costs: Consolidation created by cross-docking can reduce transportation costs.
- Improved Tracking: Cross-docking can improve the visibility of products in the supply chain. Shippers can better track freight and communicate this to their customers.
- Sustainability: The consolidation created through cross-docking allows more efficient routing and reduces the total number of miles driven in the final mile part of deliveries.
Cross-docking is used for a variety of products, including consumer packaged freight, perishable goods and other products that generally require just-in-time delivery. Along with this, cross-docking is an efficient way to consolidate freight before being shipped to its final destination. Overall, cross-docking is a vital part of the transportation industry that allows businesses to better streamline their supply chain and boasts operational efficiency.
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-The Team at Wood-Hall Logistics