8 Advantages of cross-docking

Cross-docking involves the loading and unloading of inventory from an incoming truck onto an outgoing truck. It bypasses a storage facility and companies can ship products with greater speed down the chain.

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  1. A Cross-docking facility has a smaller footprint, requires less capital expenditure and companies can sell-off any additional warehouse facilities
  2. Increase speed allows products to get to the market faster and can increase customer satisfaction
  3. Companies require less inventory, which reduces inventory holding cost and cycle time as products aren’t stored
  4. Cross-docking can reduce transport cost as it allows you to consolidate loads
  5. Cross-docking requires less labour and provides companies with more flexibility during down-times
  6. Cross-docking can reduce energy cost and assist with making companies carbon neutral
  7. It provides companies with more agility further down the chain as products are shipped in bulk and can be repackaged and shipped as required
  8. Cross-docking provide flexibility for growing companies