Cross Docking And Why Is It An Important Concept For Many Corporations?

Inventory Management
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What is cross-docking and why is it an important concept for many corporations?
Cross-docking involves moving products from a manufacturing facility by a corporation and delivering it directly to the consumer with little or no material handling occurring in between (Coyle et al., 2016). Through this process, companies significantly reduce material handling and also decrease the necessity to store products in their warehouses. Cross-docking is an essential strategy that companies can employ in achieving a competitive advantage. When this procedure is developed and executed effectively, and in the right conditions, it can provide significant improvements in efficiency and handling times of products for a company.
Through cross-docking, the square footage needed by an enterprise is reduced. Since little to no storage occurs, only a small amount of space is required for this process, which highly reduces the footprint of the company and all the related costs (Coyle et al., 2016). Therefore, since little to no storage occurs for companies employing cross-docking, the associated costs towards storing inventory is reduced.
With cross-docking, a corporation can help in the management and improvement of customer product quality. During the procedures of unloading and staging, the workers can effectively inspect inventory that may have been damaged while in transit (Hugos, 2018). This, therefore, assists in the reduction of the amount of damaged inventory that will reach the customer and ultimately, assists in enhancing customer satisfaction rates.
When a corporation uses cross-docking, this process will help in the reduction of late delivery times. Usually, companies that offer cross-docking services are located in regions whereby the final delivery destination is near. This helps in the reduction of delivery times by eliminating excess travel and decreasing transport costs (Hugos, 2018). With optimized route schedules, fewer miles a...