How to Streamline Your Business Through Cross-Docking

How to Streamline Your Business Through Cross-Docking

If you are running a successful trucking business, you will already know that margins can be razor-thin even in the best of times. One of the most significant costs that transport and logistics companies have to contend with is storage. Storing goods when they are between-transit is expensive, time-consuming, and can lead to a significant rise in overall business spending.

That is why an increasing number of trucking companies are eschewing warehouse storage altogether and adopting a cross-docking system for their operations.  But what is cross-docking? Essentially, it is the process of removing the “storage” element from supply chains altogether.

Instead of receiving goods and store them until they can be moved on, cross-docking allows you to consolidate resources by unloading products and then immediately reloading them into an ongoing truck, rail, or freight vehicle so that they can go straight onto their next destination. If you are considering a cross-docking service for your business, read on to find out the cross-docking benefits that could level-up your business in 2021.

1. Cross-Docking Reduces Storage Space

When it comes to the advantages of cross-docking, the most important is that it saves on storage space. On average, businesses spend around $6.53 per square foot on warehouse storage space, adding up to eye-watering annual costs for many.

By cross-docking and removing the need to warehouse goods altogether, you can completely remove the need to pay for this expensive and unnecessary service.

2. Cross-Docking Reduces Labor Costs

It’s no secret that labor costs in the trucking and transportation industry are high and constantly rising. However, cross-docking logistics means that fewer people are needed for inventory management and quality control.

This will save you money and allow you to pass on those savings to customers, or simply use the money saved to reinvest in your growing business.

3. Cross-Docking Reduces Inventory Costs

In a nutshell, cross-docking reduces the number of goods you have in storage, as well as the amount of time spent storing them. Inventory costs, which include the costs of storing, securing, managing, and counting all of your stock on a regular basis, can be crippling for a growing business.

With cross-docking efficiency gains, all of these costs can be dramatically reduced overnight, saving you time, money, and resources.

4. Cross-Docking Reduces Damage

The risk of damage to your products rising every time an extra step is added to the supply chain. Virtually all of the damage that is usually caused in transport and logistics occurs when products are handled by humans and moved from one location to another, usually for storage purposes.

However, with cross-docking, the material handling stages are drastically reduced, meaning that your stock is less likely to suffer costly damages.

5. Cross-Docking Improves Service

Finally, it is worth emphasizing that cross-docking improves the speed and efficiency of your entire operation. Products can get to their final destination faster and are more likely to arrive there in perfect condition.

This is a sure-fire way to improve customer satisfaction and ensure that your customers remain loyal for life.

Consult a Cross-Docking Specialist Today

If you are ready for cross-docking to benefit your business and save you time, money, and human resources, we are here to help. To find out how cross-docking services can benefit your business, do not hesitate to get in touch with our friendly and professional team today.

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