Cross Docking is a term used to describe the process of a carrier using another warehouse dock as a hub as in a spoke and hub model. . The warehouse may belong to the carrier or another Carrier. The main point is that the freight is transferred to one point/location and then is transferred to another truck/driver and taken to the next point or final destination. Cross docking can eliminate the need for inventory to be held at each location. After products are delivered to a warehouse they are sorted by destination locations and various drivers then take the freight for a specific area/zone.
Cross docking is not usually visible to the end customer unless that customer is a business and has a large shipping volume. In this instance, transportation managers are usually aware that their freight may be cross-docked a few times if traveling long distances.
Benefits of Cross Docking
Below are just some of the benefits;
High Product Turnover Rates
When you’re in the middle of a high-volume order, it can be hard to ensure that the parts are appropriately packaged. What if the first box isn’t quite right? It’s easy to lose sight of what’s happening in the warehouse when so many orders are coming, but that’s where cross-docking comes in. Your company’s dockers will be able to cross-dock your parts before they reach the customer; This means that they won’t have to stop production on any of your orders, and they’ll get your shipments to you faster than ever.
Reduced Storage and Labor Costs
Cross-docking allows you to deliver products immediately, saving time and storage space. In addition, by reducing the labor needed to move inventory from one point in the supply chain to another, cross-docking can make your logistics more efficient and less expensive.
On the other hand, the faster you can get products from the storeroom to your customers, the fresher they will be when they arrive. Still, it can also apply to other types of products that may be damaged by long-term storage or delivery delays.
Increased Customer Satisfaction
When shopping online, consumers expect a quick turnaround on their products—and it’s no surprise! As a result, they don’t have to deal with residual stressors with in-person shopping: navigating traffic, fighting for a parking spot, and waiting in line. Instead, they click a button and wait for their goods to appear at the door.
Cross Docking Warehouse
Cross Dock warehouse is everything an online business owner would need. They only have to make a call, set everything up, and Swifts Cross-docking services will handle the rest when it comes to receiving the shipments, organizing, and fulfilling those orders.
Ultimately, the decision is up to you. Cross-docking is one of the best methods for efficient, environmentally responsible distribution within a warehouse. Still, if it doesn’t work for your business or meet your needs, there are alternatives to fall back on such as direct shipping.
However this option is much more expensive.