Cross-docking means taking an item of finished goods from the production plant and delivering it directly to the customer with virtually no material handling in between. Cross-docking reduces material handling and storage of the material in the warehouse. In most cases, the material sent from production to the loading dock has been allocated for outbound deliveries.
The many benefits to a company that uses cross-docking include:
Ø Lower labor costs because the material no
longer requires picking and put away in the warehouse
Ø Less time moving
material from production to the customer, improving customer satisfaction
Ø Less need for warehouse
space, because the material is not stored.
The finished goods are delivered from the
production area directly to a location near the loading dock and from there are
packed and shipped. In some instances, the material does not arrive at the
loading dock from the production area, but may arrive for shipment from the
warehouse as a purchased product to be resold or delivered from another
company’s manufacturing plants.
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