Each year supply chain managers are surveyed regarding a variety of topics and concerns. Each year surveys report that attracting new business and saving money are key areas of focus for supply chain operations. As the industry increases in complexity, warehouse operators must explore every potential avenue for operational improvement. Cross-docking has been presented and proven to be a successful solution for targeting cost reductions and attracting new clients.
Cross-docking is a logistics activity where materials are unloaded from an incoming shipment onto dock staging areas. Once unloaded, inventory is sorted and staged for outgoing shipping. These staged orders are loaded directly onto outgoing vehicles with little to no storage time required. Every year more and more businesses shift their logistics outsourcing to supply chain businesses practicing cross-docking because they are able to offer cost savings opportunities and process optimization needed to capture new business.
Cross-docking helps to eliminate high costs paid for LTL shipments. With cross-docking shipments can be strategically consolidated to reduce empty space in shipping containers. This allows customers to benefit from economies of scale where the total transportation cost is spread across more units. This allows shippers to pass on savings to their customers.
By eliminating storage time, inventory flow through rates are increased. This allows your business to increase order fulfillment rates and put product in consumers’ hands faster. This helps small to mid-size business compete with distribution giants like Amazon. Consumer decisions are often driven by shipping time so this can provide competitive advantage and capture new business.
The implementation of cross-docking also helps to reduce both operating and labor costs. With smaller facilities and minimal handling requirements less labor and resources are needed to fulfill orders and complete day-to-day activities. By eliminating storage requirements, supply chain businesses can also reduce inventory carrying costs. All of these savings can be passed on to customers.
To learn more about cross-docking, technology needed or how it benefits the omni-channel retail industry contact Datex supply chain experts today at www.datexcorp.com , firstname.lastname@example.org or 800.933.2839.