Cross dockings are lean logistic systems that enable distribution to be more efficient by fast-tracking the inventory fulfillment and replenishment cycle. It allows retail supply chains to cut costs and get finished goods to the end user on time. Watch this video and learn how cross dockings work.
Cross-docking involves the immediate transfer of products from manufacturers or suppliers to retailers or customers with little or no storage and handling. It immediately converts incoming deliveries to outgoing shipments. This model has numerous benefits, including faster receiving times and shipping, time-saving, reduced costs, reduced material handling, and centralizing material handling and shipping processes.
Effective cross-docking needs real-time visibility of goods from the supplier to the customer. Supply chain companies must track each parcel, even between trucks in the same warehouse. Real-time tracking is necessary because low inventory visibility may lead to delayed or duplicate shipments, excess inventory, or added overhead costs.
Cross docking is ideal for exporters and importers with stable, high inventory turnover and consistent demand. Some businesses that can benefit from this lean model include companies with multiple suppliers and those dealing with time-sensitive products.
