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The Benefits of Cross Docking in a Warehouse Operation

benefits of cross docking warehouse

Cross Docking is a warehouse supply chain function that includes the immediate or faster transfer of finished goods directly or manufacturers to customers or retailers with limited handling or storage requirements. This enables faster replacements by positioning inventory closer to the end customer and enabling those customers to serve their end customers.

Faster Shipping & Receiving Times

Since labor to store products can be reduced or in some instances eliminated entirely, warehouse items will reach their final destination much quicker. and inventory can be staged and turned around quicker. Shipping efficiency increases as bigger batches are broken down into smaller shipments and loaded to freight going in the same direction.

Reduced Costs & Time Savings

Using a cross docking warehouse, you do not need an eCommerce service to cost effectively have products sent to their customers. With cross docking, a warehouse will use a more efficient warehouse management process to support faster replenishment of their “Just In Time’ inventory. In addition, tracking an inventory flow through the entire eCommerce supply, inventory tracking is done in bulk. This process will help reduce labor costs and save time by keeping inventory shipments intact for a mor efficient inventory system.

Provides a Central Site for Handling Products

As late deliveries occur from a central location known as a cross dock warehouse, the warehouse distribution center acts as a sorting facility at the cross-docking location where products are sorted. This is especially true for perishable items such as food and beverage items and assigned to multiple carriers based on the shipment’s destination.

Reduction of Material Handling

Cross docking operations involve less material handling, less need to track products movements and protect and manage multiple SKU’s. Some warehouse items benefit from less material handling throughout the supply chain to manage quantities. In addition, tracking an inventory flow through the entire ecommerce chain, distribution of items is done more smoothly and efficiently. This process will help reduce labor costs and save time by keeping inventory shipments intact for a more efficient inventory storage system.

Provides a Central Site for Handling Products

As late deliveries occur from a central location known as a cross docking warehouse, the warehouse distribution center acts as a sorting facility at the cross-docking location and products are sorted.

Some products have a shorter shelf life (i.e. pharmaceutical, cold storage products etc.) which benefits customers or other businesses receiving products.

Core eBusiness Solutions and the CoreWarehouse WMS software provides a robust cross docking function as part of the company’s Warehouse Management Software.

The company is headquartered in Fairfield, NJ and can be reached at 201 836-8900.

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