With the development and growth of businesses based on online stores, logistics has become a fundamental strategic element for success. Developing a logistics management system that minimizes delivery time, reduces stock to the maximum, and guarantees the proper handling of goods are basic pillars that we must take great care of. To achieve this, it is key to rely on a warehousing company capable of coordinating inbound and outbound goods with precision and in very tight time frames.
What Cross Docking is
There are many logistics management models for Ecommerce; choosing the most suitable one will depend on the type of business and its needs.
One of these models is Cross Docking, which is based on the idea that as soon as the goods arrive at the warehouse, they are shipped to the final recipient. The essence is to reduce storage time as much as possible, so that as soon as the goods enter the logistics warehouse, they are prepared to leave in the shortest possible time.
In fact, we can find different types of Cross Docking, since not all goods can undergo this immediate transit. When a specific order preparation has to be carried out, the Cross Docking we could perform would not be pure, but it would be aimed at minimizing the time the goods stay in the warehouse, reducing it to the time strictly necessary to prepare the order.
Advantages of Cross Docking for Ecommerce
- Delivery times are reduced precisely because of the reduction in storage time
- The warehouse space needed for goods stock is minimized, since the tendency is towards zero stock
- Consequently, the cost linked to stock management is reduced, including personnel costs
- The risk of breakage, loss, or shrinkage is minimized, since the goods are barely handled in the warehouse
- The risk of obsolescence is reduced because products are not stored
- Investment in stock products is reduced to a minimum, freeing up that money for other business needs
- Customer service is improved due to shorter delivery times and the minimization of the risk of stockouts.
There are many advantages to Cross Docking, but it is important to bear in mind that this logistics management model is not suitable for all businesses, as it will depend on the type of product and handling needs. In addition, it is a model that requires very well-articulated coordination between the supplier and the logistics operator, since a correct flow of goods must be guaranteed in accordance with the needs of both parties. In this context, having an efficient picking service is crucial to prepare orders quickly and maintain the operational flow of Cross Docking.
