Want to free up your storage space, reduce cost and save money?
Then cross-docking might be the right process for your business.
Cross-docking is a strategy that unloads freight from an inbound load. This freight is then loaded directly onto an outbound shipment.
This keeps products moving. Plus, it eliminates the function of storing orders in a warehouse.
Is cross-docking right for your business? Check out these five cross-docking benefits to help make your decision.
1. Reduces Transportation Costs
Cross-docking removes the storage part of the supply chain. Because of this, trucks are on the road less which reduces miles, fuel, and vehicle maintenance costs. This cuts your business’s carbon emissions thus reducing environmental impact.
2. Shortens Delivery Times
A cross-docking facility provides lead time reduction. This means your products are being moved faster and will reach your customer in record time.
Not only does this benefit your product distribution speed, but it also improves your customer service. This makes it more likely for customers to purchase your product again and become loyal to your business.
3. Saves Money
There are many opportunities to save money with cross-docking providers. An essential part of freight operations is warehousing which costs the business money to use.
A benefit of cross-docking is that you can avoid long-term warehousing and minimize the costs associated. This will reduce the cost of storage and labor.
Saving on labor will help pass on savings to the customer. This will improve customer satisfaction and give your business a competitive edge.
4. Reduces Storage Space
Every time your product is in a warehouse you are renting that square footage of space. This can become costly especially if you require a larger space for your products.
In a cross-docking facility, once your product arrives it is sorted through quickly and sent directly to its final destination. The time your product is stored in the facility is minimal.
Plus, cross-docking requires far less square footage for storing products. This can reduce distribution costs by half and help to reduce fees which will save your business money.
5. Improves Customer Product Quality
When your products are unloaded into a cross-docking facility, staff are able to inspect for any damage. This minimizes the risk of damaged products being sent to customers.
Cross-docking also minimizes material handling which helps the products stay free from damage. If an issue does arise, it can be easily resolved and any potential disasters can be avoided.
Take Advantage of Cross-Docking Benefits Today
The benefits of cross-decking make storage and distribution streamlined which improves warehouse efficiency.
It requires strong communication between supply chain members. You also need to have excellent organization skills. As well as up-to-date technology.
If this sounds like the right strategy for you, it’s time to contact Genex. We offer logistics services, including cross-docking services, warehousing, local deliveries, and more.
Ready to enjoy the cross-docking benefits for your company?
Get a quote today!