Cross-docking operations are a logistics and supply chain strategy that minimizes handling times and maximizes efficiency across industries. Using cross-docking bypasses the storage element of the supply chain, allowing companies to get their goods into the hands of their customer or distributor much faster. Here’s a look at the general principles of cross-docking, and how it can help your company.
Cross-Docking Explained
Cross-docking is a lean supply chain model that eliminates the storage element of the inventory. Instead of storing the inventory inside a warehouse, it is moved from truck to truck, resulting in immediate or faster transfer between suppliers and manufacturers and customers and retailers. Goods are unloaded from the supplier’s truck, sorted on the inbound dock, consolidated on the cross-docking terminal, and loaded onto an outgoing vehicle at the outbound dock.
Pre-Distribution & Post-Distribution
The two basic types of cross-docking are pre-distribution and post-distribution. With pre-distribution, the goods are unloaded, sorted, and then repackaged per existing distribution instructions, and the customer is already identified. With post-distribution, sorting doesn’t occur until a facility is chosen and customers are identified. Goods spend more time at the cross-docking or distribution warehouse, but retailers and customers have more time to make an informed decision about where to ship the goods.
Benefits of Cross-Docking
Cross-docking offers many benefits to retailer and distributors:
- Reduced Costs – Inventory costs are lower and there is less need for warehouse space.
- Improved Delivery Times – The supply chain is optimized and delivery times are shorter.
- Higher Accuracy – Less need for manual handling means higher accuracy.
- Increased Responsiveness – Real-time tracking makes it easier to respond to changes in demand.
- Sustainability – Fewer shipments lowers transportation costs and emissions.
At Xcel Delivery Services, we offer cross-docking services throughout Arizona and beyond. We service warehouses near major interstates and international airports. To learn more about how our cross-docking services can benefit your business, call us today at (888) 743-0067, reach out to us online, or log into your existing customer account.
