Cross-docking
For many e-commerce and retail companies, getting products to their customers in the fastest and most efficient manner can mark the difference between success and failure.
That is why cross-docking has become an increasingly popular way to move goods. It is a procedure in which products from a supplier are distributed directly to a customer or retail chain with minimal handling and storage.
Thus, the products “cross the docks” from the receiving dock to the shipping dock.
Goods that arrive at the port would usually be moved to a warehouse. In cross-docking, however, they are quickly ported over to trucks or trains that deliver these goods directly to the customer.
The most significant advantage of this method is that it provides substantial inventory savings. Without the need for storage, inventory and handling costs are slashed or eliminated.
Cross-docking is particularly useful in the case of perishable goods, temperature-controlled items, and goods that need to be delivered quickly to the end-user. It also expedites customer orders, raising customer satisfaction as a result.
One of the biggest proponents and users of this approach is the U.S. giant retailer Walmart. The company reportedly delivers about 85 percent of its merchandise through cross-docking. It keeps suppliers up to date with sales activities and trends via satellite communications while streamlining its supply chain to ensure smooth and rapid delivery.
Find out how DHL Supply Chain can assist you with your company's cross-docking needs today.
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