There are numerous benefits to partnering with cross-docking companies like CWI Logistics. Three main advantages include increased supply chain speed, cost-effective warehousing, and scalability. Read on to earn more about cross-docking and its benefits.
What’s the Role of Cross-Docking Companies?
Cross-docking companies like CWI follow a proven logistics model that seeks to optimize a supply chain by reducing the storage time of products. In other words, once the products are unloaded, they’re not stored but instead are prepped or staged to be sent directly to consumers according to their specific needs. Additionally, the orders are organized and distributed based on the delivery routes needed to get the product to those specific consumers.
3 Benefits of Using Cross-Docking Companies
There are a number of benefits to working with cross-docking companies like CWI Logistics. However, for our purposes here, we’re focusing on 3 of the main ones. The benefits include the following.
1. Increased Supply Chain Speed
Inventory management is one of the largest expenses for manufacturers–accounting for as much as 67% of their total lifetime warehousing costs. This is why cross-docking companies are so valuable. An invaluable process in the middle of the supply chain when trying to move inventory from manufacturers to consumers is cross-docking.
Again, the goal of cross-docking is to have little to no storage time. Generally, storage time is kept under 24 hours. Products are either sent directly to clients after being unloaded or sent to be broken down and staged through what is known as a picking process or “pick and pack.” Pick and pack logistics allows for mix and match or selective retrieval of individual products from various cases to fulfill a customer’s specific order.
2. Cost-Effective Warehousing
Since goods are not stored long-term and are only staged to be shipped to the appropriate location, cross-docking companies are able to provide cost-effective warehousing solutions. Short storage time also eliminates the need for additional warehouse space.
Contracting out to a third-party logistics provider like CWI not only reduces the need for warehouse space but completely eliminates the need for manufacturers to build or rent their own warehouse space. Cross-docking companies also create additional warehouse efficiencies by leveraging customer relationship management (CRM) software to manage inventory and satisfy customer fulfillment needs.
Lastly, cross-docking companies are able to consolidate numerous, smaller product loads into a single method of transportation. Moreover, logistics companies like CWI have partnerships with major nationwide and international shipping carriers. These relationships allow them to negotiate the best rates and pass those cost savings down to their clients.
Consumer demands often ebb and flow based on a number of factors including seasonality, market shifts, the economy, pandemics, large-scale weather events, and more. As a result, manufacturers that attempt to meet their logistics and warehousing needs in-house are more vulnerable.
Working with companies that specialize in cross-docking services provides scalability for manufacturers–insulating them from volatile outside market conditions. Third-party cross-docking eliminates unnecessary costs and allows for more margin and flexibility. For example, having too much warehouse space creates excess overhead but having too little prevents you from effectively fulfilling customer needs. Cross-docking companies effectively solve this problem.
CWI Is Your Go-To Cross-Docking Company
At CWI Logistics, we are your experts in cross-docking, as well as transportation and packaging. We’ve operated in climate-controlled warehousing for over 5 decades. Let us take your cross-docking needs off your plate so you can focus on other aspects of your business.
We’re always here and ready to serve all your third-party logistics needs!