As Benjamin Franklin said, “Time is money.” If a company can save time, then more often than not the company can save money. If done right, the savings should be directly proportionate to the amount of time saved. It is that simple. If all this is true, Cross Docking should be rather valuable for warehousing companies.
“The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. Cross Docking not only reduces material handling, but also reduces the need to store the products in the warehouse. In most cases, the products sent from the manufacturing area to the loading dock have been allocated for outbound deliveries. In some instances the products will not arrive at the loading dock form the manufacturing area, but many arrive as a purchased product that is being re-sold or being delivered from another of the companies’ manufacturing plants for shipment from the warehouse.” 
Cross Docking can streamline the supply chain process by decreasing the amount of time a product sits in a warehouse and eliminating expensive, unnecessary handling and storage of a company’s excess inventory and goods.
According to Cross Docking in the Warehouse by Martin Murray, Some of the benefits of cross docking include:
- Reduction in labor costs, as the products no longer requires picking and putting away in the warehouse.
- Reduction in the time from production to the customer, which helps improve customer satisfaction.
- Reduction in the need for warehouse space, as there is no requirement to storage the products. 
FW Warehousing often uses Cross Docking to help customers streamline the supply chain from point of origin to point of sale. By properly utilizing Cross Docking services, FW Warehousing helps its customers reduce operating costs, increase throughput and in many cases drastically reduce inventory levels outside of the warehouse.
Reducing inventory means customers need less space and equipment for handling and storing goods. For a company with numerous retail locations, this can mean that more space can be allotted to retail sales and less space used to store or move goods at each location.
Some materials are better suited for Cross Docking. Here is a short list of materials well suited for Cross Docking:
- Perishable goods requiring immediate shipment
- High-quality items that do not require quality inspections during the receiving process
- Products that are pre-tagged, pre-ticketed and ready for sale to the customer
- Promotional items and items being launched
- Staple retail products with constant demand and/or lw deman variance
- Pre-picked, pre-packaged customer orders from another warehouse or production plant
Given the opportunity, use Cross Docking to get goods in and out of the warehouse as fast as possible to help save time and money.
1. Cross Docking in the Warehouse (About) http://logistics.about.com/od/tacticalsupplychain/a/cross_dock.htm