Cross-docking -- the process of receiving product and shipping it out the same day or overnight without putting it into storage -- is an increasingly popular best practice for companies as it addresses the need to become more efficient without adding overhead. In a survey of 547 supply chain professionals, the following are the top 10 benefits to adopting a cross-docking strategy:
23% Improved service level
17% Reduced transportation costs
14% Reduced need for warehouse space
11% Consolidated shipments to destination
9% Savings from reduced inventory carrying costs
5% Get products to market more quickly
5% Improved inventory management
5% Reduced labor costs
3% Increased demand for just-in-time service
2% Accommodate company growth
Source: Saddle Creek Corp.
See Also
About the Author
Dave Blanchard
Senior Director of Content
Focus: Supply Chain
Call: (941) 208-4370
Follow on Twitter @SupplyChainDave
During his career Dave Blanchard has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. He also serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2010), which has been translated into several languages and is currently in its second edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.