In retail practice, cross-docking operations may utilize staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship.
- Streamlines the supply chain from point of origin to point of sale
- Reduces handling costs, operating costs, and the storage of inventory
- Products get to the distributor and consequently to the customer faster
- Reduces, or eliminates warehousing costs
- May increase available retail sales space.
- Potential partners don't have necessary storage-capacities
- or an adequate transport fleet to operate Cross-Docking
- Need of adequate IT-Systems
- Possibility of violation of secrecy
- Cross-docking is dependent on continuous communication between suppliers, distribution centers, and all points of sale.
- Customer and supplier geography—particularly when a single corporate customer has many multiple branches or using points
- Freight costs for the commodities being transported
- Cost of inventory in transit
- Complexity of loads
- Handling methods
- Logistics software integration between supplier(s), vendor, and shipper
- Tracking of inventory in transit
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