Cross-docking is a great tool to have in your logistics tool belt. This service can be a key differentiator between you and your competition. In this short video we will review the top 10 benefits you and your customers may receive from offering cross-docking as a service.
First, cross-docking reduces the square footage needed in your facility. Because little to no storage occurs, only a small amount of space is needed for this activity, significantly reducing the footprint of your facility and the associated costs.
Because little to no storage occurs in cross-docking facilities, the costs related to storing inventory is also reduced.
In conjunction with this reduction in storage costs, material handling also sees significant reductions. Material handling is limited to loading, staging and unloading with minimal picking and putaway activity.
With cross-docking your facility can assist in managing and improving customer product quality. During the unloading and staging process staff can easily inspect inventory for damage incurred during transit. This can help to reduce the amount of damaged inventory that reaches customers and help improve customer satisfaction rates.
The reduction of material handling needs leads directly to the labor cost savings associated to these activities. This allows your business to pass on savings to customers, providing additional competitive advantage related to cost.
Because the number of hands on each inventory item is reduced due to lack of storage and minimal handling, the probability of damage to inventory and the costs associated with this are also significantly reduced.
Utilizing cross-docking also assists in the reduction of delivery times. Typically facilities offering these services are located in geographical areas that are near the final delivery destination. This helps to reduce delivery times by eliminating excess travel.
Cost savings, increased product quality and reduced delivery times due to cross-docking also factor in to help increase customer service satisfaction. This will help to retain current customers and capture additional market share.
The utilization of cross-docking can help to reduce transportation costs. With optimized routing, less miles are wasted, reducing fuel and associated vehicle service costs.
Lastly, cross-docking provides fixed asset cost savings. Cross-docking requires less facility square footage. These smaller facilities require less cash outlay to operate.
All of these benefits help demonstrate one key issue: implementing cross-docking can provide your business with many new opportunities to save money, increase efficiency and better serve customers. Thank you for following along with this video series on the basics of cross-docking. To learn more about cross-docking or to ask questions about your current logistics challenges contact Datex supply chain experts today.
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