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What Comprises a Cross Docking Warehouse?

A cross docking warehouse receives incoming goods and quickly dispatches them off within a short window of time. The one big advantage here is that inventory is not locked up for long periods of time. In a normal warehouse, such goods would be sorted, processed, and stored for a particular time duration before actually going to the buyer. The coming in and moving out of goods happens more quickly in a cross docking warehouse.

Is Cross docking really necessary for your business?

Cross docking is perfect for you if you are looking to minimize wastages and reduce warehousing costs. However, not all industries benefit from it. And yet, for some others, it can be the catalyst that drives profits.

How Do You Determine If Cross Docking Is Right For You?

For this, first, you need to understand the benefits and limitations of this. You also need to know what type of industries are more suited to cross docking.

The key benefit of cross docking is that it drastically reduces the storage space needed for your inventory, along with warehousing and material handling costs. It also ensures that you incur lesser loss due to improper handling of materials. Most importantly, delivery is quicker when undertaken by a cross docking warehouse.

There are certain challenges here, too. Firstly, the process of sorting out incoming goods and making them ready for outbound transportation is time-consuming and not as simple as it looks. Then, you would need more capital for transport vehicles initially as well as setting up cross docking platforms. Its benefits are more apparent in the long run. Lastly, because of the small window of time between inbound and outbound material processing, your supplier should be trustworthy enough to send you goods at short notice.

However, with the help of the best 3PL partner, you can get the best of cross docking for your business. If you believe a cross docking warehouse can make your delivery cycle prompt and more efficient? Do partner with Spectra. The team can surely help you bring the optimal advantages to your business.