Cross-Docking Technique in Logistics

January 15, 2018

(Please feel free to watch our video instead of reading)

 

Cross-docking is an effective technique utilized in distribution centers and warehouses, to speed up the order fulfillment process. This practice in logistics make the incoming stocks transferring directly into the shipment without connecting warehouse. This eliminates the need to store products, and thereby saves the overall time to a great extend. The incoming items are likely to remain on the site for a maximum of 24 hours, but mostly leaving in a much shorter time. 

 

 

 

The image given above tells you a clear explanation of how Cross-Docking brings a benefit in terms of effort and time. To operate an efficient cross-dock process, a good information technology system is a must. Goods need to be identified easily at the inbound stage to enable staff to move them directly to the dispatch or shipping area as opposed to the storage area.

Advantages of Cross-Docking:

  • First level of production until sales will be streamlined 

  • Less effort thereby less labor costs

  • No inventory holding costs since no warehouse is used

  • Product movement from manufacturer to the distributor, and consequently to the customer, become faster

  • Less risk of inventory handling

  • Less paper jobs

 

WMS-lite.com has the feature of cross-docking. The time in the warehouse can be charged (storage) or not charged at all - A location called "Cross-Docking" can be created to move the goods in a very short timeframe as described in this article.

 

Talk to us to know more about how we support Cross-Docking feature in our software 
FREE Demonstration and 15-Days FREE full-version are always available at your fingertip

 

 

 

 

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