How Does Cross-Docking Help Me?
The Benefits of Cross-Docking
Cross-docking provides many benefits for businesses, namely offering a more streamlined, efficient operation, resulting in a reduction of expense across the board. Here we look at the main advantages the system offers:
By streamlining and simplifying consolidation and loading systems, cross-docking facilities are able to provide a fast-paced environment, with a quick-turnaround, swiftly moving goods through the process. The end result is that products reach their destination (often the customer) quickly, allowing businesses to retain a competitive edge.
Implementing cross-docking is often an extremely cost-effective way to handle the transportation and distribution of goods. It eliminates the need to carry out typical warehouse tasks such as picking and inspection, which positively impacts on labour costs. However, the biggest reduction in expenditure comes from eradicating the need to store items for long periods of time; substantially reducing, or even eliminating entirely, the need for dedicated warehouse space. In addition to this, there are savings to be made with regards to transportation costs. Gathering products at one central point to then reload and ship to one destination removes the need for using several vehicles.
Using cross-docking means that materials are in and out, reducing the need to hold on to large volumes of stock. This leads to fewer labour hours required to oversee the management of the inventory, and also has an impact on the need for warehouse space (as highlighted above). This is particularly valuable in an ever-competitive world where it is important to have an edge over business rivals; cross-docking means that businesses aren’t tethered to contracts for large warehouse space, and are not bogged down with tons of inventory, making it easier to adapt and change to meet current demands. Another benefit of not having stockpiled up in warehouses is that it limits the likelihood of accidental damage, fire, or theft occurring.
Contact FMi Logistics today to find out how we can help you.