The How and Why of Crossdocking

Crossdocking is increasing in popularity among warehouses, distribution centers and third party logistics providers because it is an excellent way to combat increasing transportation costs and customer shipping expectations. Changing pricing structures and the shift towards omni-channel retailing are two main drivers in the adoption of crossdocking processes. Crossdocking is the process of transferring both finished materials and product components to a specified customer with little or no storage time in between. Shippers arrive at your facility carrying inventory needed by your customer. Inventory items are unloaded to staging areas where it can be sorted and consolidated into new shipments. Once the new shipment has been created it can once again be loaded onto a truck and shipped directly out of your facility. Businesses that most often utilize crossdocking include transportation companies, freight forwarders, e-Commerce businesses with online channels only, manufacturers, distribution centers, omni-channel retailers and 3PLs. Implementing crossdocking in their warehousing and distribution centers allows them to: increase order turnaround time as inventory flow through is much faster; reduce order processing costs with reduced labor requirements; reduce inventory holding costs as storage is not required; increase customer satisfaction with faster shipping rates; better utilize shipment resources through consolidation; and reduce material handling leading to reduced likelihood of inventory damage. The top supply chain service providers worldwide offering crossdocking services receive the full potential benefits with the utilization of proper supply chain technology. Automated data collection tools such as mobile computer, barcode scanners and powerful wireless networks assist in collecting data in real-time, creating an environment where crossdocking can thrive. All of the data collected using these ADC tools is transferred into a warehouse management software system where users can view the data and make accurate, informed business decisions. These crossdocking best practices, among others, can provide your warehousing and distribution center with the optimal scenario to provide best-in-class crossdocking services. To learn more about implementing crossdocking in your facility or supply chain solutions that may improve your current processes contact Datex experts today at 800.933.2839, marketing@datexcorp.com or www.datexcorp.com .