U.S. companies have been streamlining logistics with cross docking since the 1930s, but the practice truly became widespread when Wal-Mart began doing it. With cross docking, shipments spend little to no time in a warehouse. Instead, they are unloaded at the docking terminal and directly loaded into another truck, or sorted and then loaded into other trucks. If you’re looking for a way to improve customer satisfaction and manage shipping costs, then cross docking could be the perfect solution for your business.
To Consolidate Shipments
One reason to integrate cross docking into your route planning is to consolidate shipments. Cross docking allows you to combine shipments from multiple origins that are intended for the same destination. When consolidating shipments, it may be more efficient to keep one truck waiting for a few minutes so that the products can be transferred directly from that truck to another truck, rather than being unloaded into the dock terminal area.
To Sort and Separate Products
Cross docking can also accomplish the opposite of shipment consolidation: Sorting and separation. This is useful when a company is shipping items from one point of origin intended for multiple destinations. The products will be unloaded from the truck into the terminal area, sorted, and then loaded back onto multiple trucks for final delivery.
To Improve Customer Satisfaction
These days, customers expect to receive deliveries quickly. Cross docking eliminates the need for warehouse storage and excessive handling. This allows customers to receive their deliveries more quickly, which improves customer satisfaction.
To Reduce Shipping Costs
Another benefit of cross docking is the reduction in total costs. Cross docking is more cost-effective because companies aren’t paying for long-term warehouse space. And in many cases, they aren’t paying for storage space at all. Cross docking also reduces labor costs, since materials require less handling.
Xcel Delivery Services’ facilities are fully equipped to handle your cross docking needs, with multiple bays at varying heights. We also offer short-term warehousing solutions for flexible cross docking. Call our office in Phoenix at (602) 368-1300 to get started today.
