More companies are incorporating crossdocking into their supply chain strategies, a recent independent nationwide study of warehousing, distribution, and transportation executives found. Crossdocking is the practice of receiving goods at one door of a facility and shipping out through another door almost immediately, without putting the goods in storage.
Some 52% of the study respondents currently crossdock, while 13% plan to begin crossdocking in the next 18 to 24 months. Of those who currently crossdock, about half have considered crossdocking more of their total SKU (stockkeeping unit) throughput.
Improved service levels, reduced transportation costs, and less required warehouse space are some of the reasons that more companies are crossdocking today.
The benefits, along with common practices, challenges, and changing trends, are detailed in the 2008 Cross-Docking Trends Report, a new whitepaper from Saddle Creek Corp, a nationwide third-party logistics services company, based on the study.
The research found that a broader range of products is being crossdocked. While respondents who currently crossdock are most likely to crossdock durable goods, more sensitive products such as perishable, temperature-controlled, and high-value/high-security products are also being crossdocked
Moreover, the study determined that more companies are outsourcing their crossdocking strategies, and are looking to third-party logistics providers to help manage the process. One-third of the respondents who currently crossdock use a third-party logistics either exclusively or in addition to in-house resources.
A copy of the whitepaper can be accessed at www.saddlecrk.com/whitepaper.