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.
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