Cross-docking is a word that sounds complicated but in reality, it’s pretty simple.
See this video to understand it better –
It is interesting to note that Cross-docking was one of the centre-piece logistics strategies implemented by Walmart to streamline the supply chain. Yes, Walmart.
So, what really happens during the cross-docking process?
During cross-docking, inventory is unloaded from an inbound track to an outbound truck and vice versa, without intermediate storage.
Cross-docking eliminates the need for large warehouse areas and reduces the time it takes for products to reach the customer.
But then again, how do you decide if cross-docking is the right logistics strategy for your ecom store? Ask yourself a few things first –
- Do you have a stable product demand around the year?
- Are you selling time-sensitive and perishable items?
- Are you looking to fufill orders that came in through crowdfunding or a flash-sales campaign?
Analyse the answers and you will know. Cross-docking could be a game-changer for your eCommerce shipping when implemented right.