Cross docking refers to the process of unloading materials from inbound vehicles and reloading these materials directly into outbound vehicles with little storage or handling of goods between trips. This process allows companies to reduce costs by minimizing transport times and storage needs.
The Cross Docking Process
When goods arrive at a Cross Docking Services facility from suppliers or distribution centers, they are scanned and grouped according to their destination. Forklifts then transport the pallets or containers directly from inbound trucks or trailers to outbound trucks and trailers for delivery. The entire process involves little sorting or storage. New loads for delivery are assembled based on the arriving goods and orders awaiting shipment.
Advantages of Lower Inventory Carrying Costs
One key advantage of cross docking is that it reduces inventory carrying costs associated with warehousing goods. Since items are moved directly from inbound to outbound vehicles with minimal storage, companies can turn inventory over quicker and access working capital more efficiently. Lower inventory levels also mean reduced needs for expensive warehousing space and equipment.
Cross Docking Service Improved Order Fulfillment Accuracy
The cross docking process promotes improved order fulfillment accuracy since items are less likely to get lost, damaged or picked incorrectly when put away. Errors are minimized when goods flow straight from receiving to shipping with limited double handling involved along the way. This results in higher customer satisfaction and fewer incorrect or incomplete orders needing to be resolved.
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