Cross-docking is the supply chain service where you have one mode of transit meet another briefly while the product is en route to its final destination rather than hauling everything to the warehouse first. It can mitigate a lot of pain points in the supply chain. Here are just a few examples of how:
You’ve Outgrown Your Storage Space
Growth year over year is your goal as a business, and it’s a huge win to outgrow your warehousing options. But it can be costly and expensive to expand. Considering cross-docking for your supply chain could help you get product to your customers in a timely fashion without a huge need for storage. Even just choosing crossdocking for the occasional shipment or individual products could help free up a lot of storage space in your warehouse, and taking advantage of a new cross-docking dry dock facility can help you keep things moving smoothly.
You’ve Expanded Your Customer Base
There comes a time for many successful businesses where it has gotten a decent following locally and has a good reputation with their business partners in the area, but they haven’t seen as much growth beyond. That is, until word gets out across the country about the business’ great products. Now their warehouse outside DC isn’t going to do a great job servicing their new customers in Kansas City. Instead, the manufacturer in Pittsburgh can send the shipment west and meet up with your cross-docking service provider in the Crossroads of America, Indianapolis. It will save your team two days of shipping time not having to backtrack.
There’s a Quickly-Approaching Shipment Deadline
It seems that everything is taking a little longer than expected these days—especially sourcing and manufacturing. But if you’ve gotten a large order from an important client, you want to do everything in your power to get it to them in the timeline promised. Cross-docking your freight can be a great way to get there. Since you’ll be bypassing the warehouse, you can take a more direct route from the manufacturer to your customer and time your supply chain so that freight passes from one mode of transit to another without stop.
Fuel Costs Are Threatening Your Bottom Line
Having one set warehouse means that all of your product has to coalesce into one space before being sent out again, often leading to a lot of backtracking by plane, train, or truck. It’s not just going to cost you in time but wages and fuel to get there as well. It’s not cheap. Building a network of cross-docking facilities in each direction from your manufacturer can help you reduce costs. Avoiding even as little as 30 minutes of backtracking can save you a lot. That’s one hour of wages, one hour of truck time, and one hour of fuel.
You’re Short a Few Hands
If you’ve got seasonal spikes in distribution, there’s a chance your business feels a little short staffed during the peaks. Working with a cross-docking facility often creates opportunities for add-ons like lumping services. These workers can give you a hand while you’re in need of help without the additional costs and time needed to hire and train new staff, and it can minimize the chaos in your own warehouse.
Cross-docking can be difficult for some supply chains to pull off, so it’s important to know whether it’s right for youbefore diving in head first. But it can alleviate a lot of pain points for your business, and having a cross-docking facility specialist can help mitigate any reservations you might have. Reach out to our team today to learn more.