Cross Docking logistics is a method of managing goods that is part of so-called ‘Lean Logistics’, i.e. a lean distribution strategy that coordinates the entry and exit of goods to avoid warehousing and speed up delivery to the end customer.
Through cross docking, processes are speeded up and overproduction in relation to demand is limited, resulting in the elimination of inventory management while waiting to be sold.
Here are the advantages of using cross docking in more detail:
- Lower warehouse costs: there is no need for a very large facility.
- Lower personnel costs: there is no need for warehousing and picking activities, i.e. the taking of individual items from the stock warehouse to prepare the final order.
- Less risk of damage to goods: the goods are handled much less than in a classic warehouse.
- Faster delivery times: processes are leaner and more agile than in a conventional warehouse.
What are the product sectors in which it is advisable to use a Cross Docking warehouse?
- Sectors in which goods with stable demand and constant flows are handled.
- High-value articles, such as household appliances and furniture, with short delivery times. In this way, companies avoid storing large quantities of items in the shop, but entrust them to cross docking warehouses in order to sort goods according to market demand.
- Goods that are part of promotions and discounts, as this type of warehouse is better suited to respond flexibly to peaks in demand.
- Perishable goods. In these cases, it is necessary to get the products to the point of sale as quickly as possible.
Do you want to know if Cross Docking is useful for your business? Contact us for a free consultation!
