The global cross docking services market was worth around $200 billion in 2020. Cross docking is a powerful way to make your shipping and logistics more competitive.
Have you thought about shifting to cross docking but want to know more? Is your first question, “What does cross dock mean?”
Read on to learn more about cross docking and the benefits it can bring to your business.
What Does Cross Dock Mean?
Cross docking is a logistics procedure where you transfer products directly from inbound to outbound transport. When shipments come to the inbound dock, your personnel move them to a middle area for sorting and inspection. The goods then go straight onto outbound transport for shipping to customers.
The key part of the cross docking definition is that you don’t store goods in the warehouse or distribution center. The merchandise is always moving on to the customer.
Cross Docking vs Drop Shipping
Drop shipping is another inventory management technique that may seem similar to cross docking. However, cross docking differs from drop shipping in important ways.
Drop shipping sells products directly from your supplier to your customer. You never contact the items. You order from your supplier when your customer places an order.
Drop shipping doesn’t need any facilities to sort and ship the products. You have less control over the quality of the items, though. You’re only the middleman with drop shipping.
Advantages of Cross Docking
Cross docking gives you several advantages in your logistics. You save money, your customers get higher quality products, and your shipping time is faster.
Cross docking saves money through reduced storage space, lower inventory carrying costs, and less spoilage.
You need less warehouse space because you don’t store your inventory. Most goods spend less than 24 hours in a cross dock facility.
Inventory carrying costs include managing, counting, securing, and insuring your merchandise. You reduce these costs with cross docking because you hold less inventory.
If you handle perishable goods, you have less risk of spoilage. The inventory doesn’t waste valuable time sitting in a storage facility.
Improve Product Quality
Cross docking can help ensure your customers get the highest quality products. Damage tends to occur when inventory is moving in and out of storage. Less handling of the goods means fewer chances for damage.
Cross docking streamlines the shipping process, which helps protect your merchandise.
Faster Shipping Times
Cross docking can substantially reduce your shipping times. This is critical for your business. 92% of consumers say shipping speed is important when deciding to purchase an item online.
With cross docking, items can get directly on the road to your customers. You eliminate the time it takes to find and retrieve products from a warehouse before shipping them to the customer.
Challenges of Cross Docking
Implementing cross docking brings your business many benefits, but getting started can be challenging. Successful cross docking requires precise planning and coordination. You need a warehouse management system to avoid scheduling conflicts or other problems.
Setting up a cross docking facility requires a large capital investment. You need dock terminals and enough transport vehicles to fully service your business.
Benefit from Cross Docking Hassle-Free
You’ve answered the question “What does cross dock mean?” You think cross docking could be right for your business, but you’re concerned about the implementation. A cross docking services provider lets you enjoy the benefits of this logistical procedure out of the box.
Genex provides superior cross-docking service for full loads and less-than-truckload (LTL) shipments. Our state-of-the-art technology keeps all parties connected throughout the transportation process. We’re available 24/7/365 for all of your logistics needs.
Contact us today for a quote, and make the change to cross docking.