In a highly competitive market such as logistics it is necessary to provide services which will meet your customer’s needs and improve your competitive advantage. Cross-docking can do just that.
Cross-docking is a logistics activity where inventory items, whether raw, partial components or finished products from a supplier or manufacturer are distributed directly to the user. Users can be next level manufacturers, retailers or the end consumer. In a typical cross-docking scenario inventory is stored for little to no time at all before leaving for its next destination.
The process of cross-docking can be quite simple and can provide logistics customers with significant cost savings. For example, two trucks arrive at a logistics center. One carrying clothing and another cell phones. Both of these items are needed by retailer XYZ immediately. Rather than shipping large quantities in advance to be stored until needed, the suppliers of these products ship only the quantity ordered to a single facility shortly before the required date. When these trucks arrive the inventory is unloaded onto the receiving dock location to be sorted and staged for shipment. After the order is staged a truck may be loaded to order specification and shipped to retailer XYZ.
Stay tuned to this series to learn more about how cross-docking works and the benefits it can provide to your business. For additional information or inquiries please contact Datex logistics experts today.
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