What to Know About Cross Docking and Whether It’s Right for Your Business

What to Know About Cross Docking and Whether It’s Right for Your Business

Should you decide to implement cross docking into your warehouse strategy, this can be a great way to reduce waste and free up capital tied to inventory management.

Cross docking solutions ensure that you have less inventory in your warehouse, which means that you will experience faster inventory turns.

While adding a cross docking system to your warehouse sounds like it could benefit you in a variety of ways, this process isn’t for everyone. Read on to discover if creating a cross docking warehouse is in your best interest.

The Benefits of Cross Docking

There are numerous benefits to implementing a cross docking strategy, which is why many warehouses have been considering going this route. These benefits include the following.

Reduced Costs

When you don’t have to use your storage space to hold goods, this can save you approximately $6.00 per storage space, as well as reduce your carbon footprint.

In addition, it costs money to store, count, manage, and secure inventory. If it’s not staying in your warehouse for extended periods of time, you can save money in this area of your business as well.

Higher Quality Products

Even though the products won’t be spending a lot of time on your docks, while they are there, this gives your employees the opportunity to inspect them.

Finding damaged products at this stage in the game reduces the number of defective products that get shipped to customers, which can save money on returns and keep customers happy.

Reduces Delivery Time

The largest benefit that comes from implementing a cross docking strategy at your warehouse is the fact that products will get to customers faster. With the increased demand for products getting to people as fast as possible, this is a great way to fulfill that promise and have more satisfied customers.

Is Cross Docking Warehouse Right for Your Business?

cross docking warehouse will look similar to a regular warehouse in the fact that it has a loading dock, pallets, containers, and forklifts.

Where it differs is that you have to find a way to ensure that goods move efficiently and quickly through your system.

That means that you have to know what is coming and when and where it needs to go and how it’s going to get there.

It can be expensive to convert your system into a cross tracking warehouse, but it could wind up saving you in the long run.

Converting your warehouse structure to support a cross docking system may seem challenging and daunting, but there are tools and systems already in existence that can help.

Some of the beneficial tools that you can add include:

  • Electronic Advance Ship Notice Transmission
  • Barcode scanning
  • Incoming freight management
  • Business intelligence
  • Disaster recovery
  • Workforce planning capabilities

Industries That Benefit from a Cross Docking Warehouse

A cross docking system isn’t right for everyone, but it can be incredibly beneficial for certain businesses. If you work with the following industries, you might consider implementing a cross docking strategy:

  • Automotive
  • Food and beverage
  • Consumer goods
  • Chemicals

Get Help with the Process

To help make the cross docking process easier and more efficient, you need to work with the right partners. At GENEX, we have the fleet and expertise to get your products where they need to go. Contact us today to see how we can work together to keep the supply chain running optimally.

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