Question

What is required to make cross-docking a viable solution for a logistics provider?

Short answer

Cross-docking is a process of delivering a product to its end consumer directly from the manufacturer without involving the step of storage or simply without involving warehousing.

Step-by-step solution

Importance of cross-docking for business

1. Cross-dockingmainly removes the storing step from the logistics or supply chain of businesses. Storing refers to the warehousing of inventory for future purposes. Cross-docking isbeneficial for businesses as it will reduce their cost by removing the warehousing. Warehouses are used to store the materials and deliver those materials to the shipment for distribution.
2. It makes the delivery of the product more easily and faster.
3. High product turnover rate.
4. It also increases the satisfaction level of customers.

Designing the whole process oflogisticsbecomes complex sometimes as it involves various steps, and this cross-docking will help them make the process of logistics simple and effective at a low cost.

Requirement to make cross-docking a viable solution for a logistics provider

Proper and adequate transportation modes, including water, highways, airways, or hand deliveries, can be a viable solution for the logistics provider. In other words, a proper amount of inbound and outbound shipments can also be a viable solution for them. It is also true that cross-docking can only be possible for perishable products as they need to be delivered as soon as they are manufactured. The logistics provider needs to be careful about applying this process as they have to satisfy all the necessary conditions before opting for cross-docking.