Cross-docking is a logistics maneuver in which transported products spend very little time in a storage area. This reduces the handling time of items and gets the product to the customer quicker, which can be advantageous for high rotational items that need cold storage. Below is a guide explaining what cross-docking is and how it can be beneficial to your company.
What Cross-docking Entails
Typically, when a product arrives by truck or train, it is designated an area in the warehouse. Products are screened, sorted, and moved to their designated area until the transportation is provided for pick up. During a cross-docking exchange, items are unloaded into a terminal, which is usually much smaller than normal terminals. They are then screened to verify content, sorted to find out where each product must go, and then reloading directly onto a truck or train on the other side of the terminal. Once reloaded, the product is sent off to the customer. Items requiring cold storage gain an advantage here if the warehouse owners have a temperature controlled loading area.
Why It’s Beneficial
Cross-docking provides a centralized location to sort similar products to multiple customers quickly. The process is referred to as a “hub and spoke,” in which the warehouse is the hub, and each destination is a spoke. Through consolidated arrangements, several trucks can meet at the same warehouse and unload similar products going to the same client, which saves on transportation costs. Primary products for cross-docking are cold storage items, high-quality items not requiring quality inspections, and promotional items.
In order to prevent possible loss of inventory over the long term, warehouse and supply chain managers should be implemented to maintain inventory control processes.
If you’re considering cross-docking to help increase efficiency for your business, the cold storage professionals at EuroFreezer Cold Storage in Hialeah, FL, are here to help. Their 16,000 square-foot state-of-the-art facility boasts three different temperature-controlled zones to preserve your frozen goods and dry storage products. Visit their Facebook to learn more about their services or call them today at (305) 392-5555 to talk to a member of their staff.