What Does Cross Docking Entail?

If your company is committed to getting the products you produce to your customers as quickly as possible, you might want to consider cross docking. Cross docking is a term that refers to the practice of taking products from a manufacturing plant and shipping them directly to customers. It eliminates the need for storing products in a warehouse and gets them to customers much quicker than storing them and then delivering them later. Cross docking is seen as a great option for those companies that want to eliminate warehousing costs and ship items immediately.

The Benefits of Cross Docking

There are many benefits that come along with cross docking. It can be used to eliminate your labor costs since you won’t have to take products and put them into a warehouse. It can also be used to reduce the amount of warehouse space you need overall. Additionally, cross docking can come in handy when it comes to perishable products as well as promotional products that need to be shipped right away.

However, there are also some challenges your company could face with cross docking. It can be difficult to carry out inventory control when you use cross docking since there’s not much time to account for everything that’s being sent out. It can lead to lost products over time. Cross docking can also lead to confusion if your company doesn’t have the manpower to make sure everything is shipped out properly. It’s why cross docking is not for every company and why some companies should opt against using it on a regular basis.

Whether you utilize cross docking or not, Affiliated Warehouse Companies is here to supply you with the warehouse space you and your company need. Call us at 732-739-2323 today to check out any of the warehouse space we have located throughout the U.S., Mexico, or Canada.