Cross-Docking, Customer Experience, D2C, Drayage, Flatbed, Flatbed Transportation, Fleet, Intermodal Transportation, Ominchannel, Operations, Port Services, Processes, Supply Chain, Supply Chain Management, Taylor Information, Third Party Logistics, Transloading, Value-Added Services
Benefits of Cross Docking – Cutting Storage Costs
What is cross docking?
Cross docking is the transfer of inbound goods to an outbound carrier through the use of a cross docking facility – that is, a temporary storage terminal that cuts out or reduces the need for inventory storage. All incoming goods are sorted and loaded onto outbound trucks as quickly as possible – often immediately.
The cross docking market is growing yet again! Globally it’s expected to reach US$342 billion by 2030 at a CAGR of around 6%. This growth is fueled by increasing consumer expectations for delivery times, putting pressure on the supply chain through the ‘need for speed’.
Cross docking benefits
Reduced costs, particularly any costs associated with long-term inventory storage and associated facilities, labor and utilities
Improved stock turnover, as the goal of cross docking is to get goods in and out as efficiently as possible
Minimized risk, given there’s reduced handling of goods and no long-term storage that could increase the chance of spoilage