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Cross Docking saves time when it is efficiently utilized and managed by the right 3PL Third Party Logistics partner. With a large enough warehouse facility and a well-trained staff in place, cross docking can save a company time, money and warehouse overhead.
Not all cross docking is created equal; different scenarios require different solutions.
- Transportation Cross Docking: Combining shipments from different LTL carriers to create economies of scale.
- Distribution Cross Docking: Consolidating inbound products from various vendors into a mixed product pallet, which is delivered to the customer when the final item is received. For example, auto parts distributors often source their parts from vendors worldwide and combine them into a single shipment for their customer.
- Manufacturing Cross Docking: Receiving products that are required by manufacturing. The warehouse receives the products and prepares sub-assemblies for the production orders.
- Retail Cross Docking: Receiving products from multiple vendors and sorting onto outbound trucks for a number of retail stores.
- Opportunistic Cross Docking: Transferring a product directly from the goods receiving dock to the outbound shipping dock to meet a known demand.
Cross Docking keeps products in the warehouse for as little time as possible. This helps companies save on warehouse overhead and minimize the warehouse space required while moving the same amount of product. |