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The Benefits of Cross-dock Operations

Saturday, May 30th, 2020

Would you describe your supply chain as speedy and productive?

If not, then utilizing cross-dock operations could help your company achieve a competitive advantage within your industry because a cross-dock can minimize handling times and maximize efficiency.

What is a Cross Dock?

The general idea behind a cross-dock is to minimize the amount of handling required to get materials from suppliers to manufacturers and finished products from the manufacturer to the customer.

This also drastically reduces inventory carrying costs and labor costs incurred by warehousing goods and picking them at a later time. Most cross docks will be a building with inbound docks on one side and outbound docks on the other.

Inbound products are unloaded and then consolidated and/or sorted in the middle before being loaded onto an outbound truck. Most products will not stay in the cross-dock for longer than a few hours.

Benefits of Using a Cross Dock

In one word, consolidation.

In manufacturing, suppliers are often located in the same region. By using a cross-dock to consolidate both incoming and outgoing shipments, your company can save a great deal on shipping costs.

Also, instead of having to load or unload several trucks in a day, one truck will arrive with a consolidated shipment from several suppliers, saving you valuable labor hours.

Minimal Handling Equals Less Damage

Nobody wants to receive a complaint from a customer regarding the receipt of a damaged product. When this does happen, it is often due to the number of times a product is handled in the shipping process.

For many companies, sending out full truckloads of products is not possible or cost-effective, so less-than-load (LTL) shipments are utilized. This means that your product ends up going through multiple shipping facilities before it arrives at its final destination.

Using a cross-docking operation allows your product to go through a minimal number of locations before arriving at the final destination. This equates to a smaller likelihood that any damage will occur.

Trust CWI For Your Cross-Docking Operations

Considering whether a cross-dock operation could help your company become faster and more productive?

Contact the warehouse, distribution, and logistics specialists at CWI to see how we can help.

Commercial Warehousing