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Cross-docking in supply chain management is an effective approach when dealing with a large number of different suppliers concentrated in a particular area. Opting for cross-docking can be advantageous through reduced costs, avoiding inventory shortages and reverse logistics operations to rectify shortages, excesses or damages at the manufacturer’s end.
Simply put, cross-docking is when goods are unloaded from inbound vehicles and immediately loaded into outbound vehicles with little or no storage period.
This serves the logistical purpose of streamlining the supply chain, moving goods more swiftly, and saving on storage and space related costs in the warehouse.
Based on operational requirements, there are different types of cross-docking, i.e., Manufacturer Cross Dock, Distributor Cross Dock, Transport/Logistic Cross Dock, all of which can be handled by PALMS™ Smart WMS.