The Benefits of Cross-Docking for E-Commerce Businesses

by Michael Kotendzhi | Logistics

Logistics is a very competitive and important market. One of the most essential elements of logistics is cross-docking. Cross-docking is a form of freight movement in which raw, partial components or finished products are directly distributed to the users, eliminating storage time or transportation processes that involve multiple steps. This directly allows logistics to work at more competitive rates and streamline the process. For more information on the benefits of cross-docking for e-commerce business, continue reading below.

No Need for Warehouse or Storage

Ultimately, the cross-dock facility will replace the warehouse or storage area. A cross-dock facility is easier to construct and requires less space. It also allows the company or business to save money and lessen overall costs for this element of the business.

Less Risk for Inventory Handling

By eliminating the warehouse, you are limiting or getting rid of inventory management risks. This allows for fewer problems and errors to occur throughout the logistics process.

Transportation and Distribution Cost

When transporting products through cross-docking for e-commerce businesses, you can group together products that are destined for a similar endpoint destination and transport them simultaneously. This will allow you to reduce transportation and eliminate unnecessary processes such as “pick-location” and “order picking.” When you eliminate these processes, you will save time, miles, and fuel, and overall costs will decrease.

Products Reach Customers Faster

The best and more beneficial part of cross-docking is that products reach customers faster. Cross-docking allows you to accelerate the screening process of products, resulting in a higher turnover for the products and, ultimately, allows you to deliver the products to customers sooner and faster. Not only will this take less time away from business logistics, but it will also make the customers even more satisfied.

If your business has a stable demand for inventory, the product you are selling is time-sensitive or perishable, or if you are having crowdfunding and e-commerce flash sales, you should consider cross-docking. These benefits of cross-docking for e-commerce business explained above provide you with multiple reasons why you should consider this course of action.

Don’t miss out on a way to stay competitive in the logistics business. If you are looking for a warehousing and distribution service, 18 Wheels is just the company for you. Call us today to speak with a professional or visit our website for more information on how to get started!

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.