Understanding Meaning Of Cross-Docking And Its Requirement In Supply Chain

 

The process of cross docking services may not be suitable for every warehouse need, so it is imperative to make an informed decision as to whether cross-docking will increase the productivity, costs and customer satisfaction for your specific business needs. 

Cross docking can facilitate the supply chain for a variety of specific products. As an example, temperature-controlled items such as food which need to be transported as quickly as possible can be benefitted by this process. Additionally, already packaged and sorted items, which are ready for transportation to a particular customer can become a faster and more efficient process through cross docking.

Some of the main reasons why cross docking in supply chain is implemented are-

• Provide a central site for products to be sorted and similar products combined to be delivered to multiple destinations in the most productive and fastest method. This process can be described as “hub and spoke”.
  
• Combine numerous smaller products into a single method of transport to save on transportation costs. This process can be described as ‘consolidation arrangement’.
  
• Break down large product loads into smaller loads for transportation to create an easier delivery process to the customer. This process is also known as ‘deconsolidation arrangement’.

To implement cost-docking effectively, warehouse and supply chain managers should train warehouse employees on those processes and make use of robust inventory control processes available through various online portals. These services are affordable and are cloud-based turnkey solution systems.