Consolidation and Cross-docking: Two methods for improving shipping efficiency
Consolidation and cross-docking are smart practices that all shippers should consider making use of to maximize efficiencies. When incorporated into your everyday shipping routines, they can both help lower costs and improve product flow.
Consolidation
What is it?
Consolidation is a process of combining multiple small shipments into a larger load in order to reducing shipping costs.
What are the benefits?
- Can lower freight costs through the sharing of full truckload pricing across multiple smaller shipments.
- Makes it possible for small shippers to get full load pricing across all modes of transportation.
Cross-docking
What is it?
Cross-docking is the process of receiving product and shipping it out the same day or overnight without putting it into storage.
How does it work?
The loading dock is used as a staging area where incoming shipments are quickly transitioned into outgoing shipments, eliminating the need to put the stock in storage and take up space in the warehouse.
What are the benefits?
- Improves facility utilization by eliminating the need for inventory storage.
- Can expand the effectiveness of existing facilities by avoiding the need to build in additional warehouse space.
- Can provide a process for overnight delivery, with no storage costs.
Consolidations and cross-docking are proven best practices for improving supply chain performance and reducing the cost of operations.
Contact us today for more information on how we can help you maximize delivery performance and efficiency through all practices available to you.
Information provided by: Supply Chain Consultant - Cole International
