Cross docking is a logistics strategy that offers great advantages such as savings in storage and speed of distribution, but also represents the challenge of achieving great coordination between the parties involved.
This is a logistics strategy widely used by manufacturers of perishable products, as it ensures that these reach the final consumer as soon as possible, extending their shelf life.
The advantages of cross docking are:
- Great savings in logistics and inventories as no products or supplies are required to be stored.
- Greater efficiency and speed in the distribution and delivery processes.
- Elimination of errors in shipments by reducing cargo handling.
- Optimization in the use of transport vehicles, since they operate with full loads.
- Less chance of damage to the goods.
- Greater customer satisfaction
- Boosting productivity and, therefore, competitiveness and profitability.
In order for the cross docking procedure to work efficiently, it is necessary that the logistics company:
- Count on an organizational culture that favors strategy.
- Implement key performance indicators (or KPIs) to verify results and make adjustments in a timely manner.
- Adequately train staff to be aware of the importance of their work for the proper functioning of the entire process.
- Clearly define your management, distribution and storage policies.
- Coordinate adequately with suppliers to work in an integrated, synchronized and fluent manner with them for the benefit of the end customers.
Cross docking can be the process that is needed in your supply chain for your company to improve its customer service, record cost savings and improve its productivity.
