An ongoing goal of any organization is to optimize its supply chain and get products to customers as soon as possible. The longer an item stays in transit or in storage, the more a company will pay for its overhead costs. In 2021, total warehousing costs saw a 5.6% increase compared to the previous year, amounting to $7.91 per square foot.
Cross-docking is a system designed to reduce the amount of storage needed by a supply chain. It creates a logistics schedule where finished products are transferred from one vehicle directly to the next, eliminating the need for any interim storage.
This not only reduces overall costs, it also streamlines order management, results in faster shipping times, and generates value to the company at a quicker rate.