Benefits and challenges of Cross Docking.
Time, money, transport and storage capacity, staff: Logistics is all about finite resources. This makes efficiency the most valuable thing in supply chain management. Rising costs and falling margins make it essential to question established processes – and find innovative solutions. Like Cross Docking.
What is Cross Docking?
The Cross Docking principle has been around since the 1980s. The American retail giant Walmart, which achieved significant competitive advantages through the change, is considered to be the founder. The method is intended to help streamline processes, reduce costs, but also protect employees and help manage market fluctuations.
The primary goal of Cross Docking is to speed up the supply chain between production and sales by completely eliminating the need to store products and minimising handling time. Goods are therefore not transported to the warehouse, sorted and finally picked and packed again. Instead, they are brought from production directly to the final recipient or to the store with just one stopover, the Cross Docking.
The method reduces storage, energy and personnel costs, as well as transport costs. It reduces capital commitment and increases the agility to respond to changing market conditions and customer needs. Rationalising and streamlining the process chain result in much faster order processing. All in all, competitiveness is increased.
Read here what services are included in Cross Docking and what advantages it offers
The switch to Cross Docking
Convinced of the benefits of Cross Docking and want to implement it? You shouldn’t rush into the decision. In addition to many advantages, Cross Docking also presents its own challenges.
First of all, Cross Docking requires special infrastructure. Numerous gates are needed for the incoming and outgoing goods.
However, a cross-docking centre must also be in as strategic a location as possible in order to integrate seamlessly and without detours into transport chains.
In addition, the processes require precise coordination and seamless communication between all parties along the entire supply chain.
So are major investments essential to benefit from the cross-docking method in the long term? Yes – unless you use a cross-docking service provider. In the System Alliance Hub, we have everything to provide Cross Docking for our customers:
With 93 gates and 8,500m2, we have an ideal transshipment area and sorting system for mixed pallets, as well as a thermal hall.
At the Niederaula location, we are not only centrally located in Europe and Germany, but are also perfectly connected: The A4, A5 and A7 motorways can be reached from the hub in just a few minutes.
We are experts in transshipment and Cross Docking. Of course, we are happy to advise you on logistics processes and create tailor-made solutions according to your specific requirements. We connect directly to your IT via open interfaces and thus deliver current data.
Take advantage of a no-obligation consultation and find out more about the Niederaula logistics location. And how Cross Docking could optimise your supply chain!
