Cross docking is often used as an alternative to warehouse storage, moving product from a supplier to a manufacturer, or manufacturer to a wholesaler or retailer by truck with little to no storage in between. The exchange normally occurs at a distribution docking terminal where trucks pull up to either side of the dock and move products from one vehicle to the other.
Cross docking in supply chain management specifically refers to the transfer of goods between vehicles the incoming and outgoing vehicles to saving on storage costs.
In between the exchanging vehicles, items can be sorted, screened, and transferred by forklift, conveyer, etc. to the other vehicle. Once loaded, the products are brought to their final destination.
Although cross docking replaces a physical storage location, movement of product through this method can still be thoroughly tracked with SOS Inventory software as a location; SOS Inventory allows an unlimited number of locations to centralize your inventory data from any access point.
How is a Cross-Docking Warehouse Arrangement Beneficial?
- It is ideal for products which must be consumed quickly and cannot be stored for long periods, such as food products.
- It works well for pre-packaged items ready for the end user.
- Items can be sorted and transferred to different vehicles for delivery to different destinations.
- Smaller truckloads can be combined to save on transportation costs of goods.
- Reduce the costs associated with on-site storage.
- Decrease risk of damage from additional movement in warehouse.
- Save on labor involved in unloading and moving product on-site.
- Reduce shipping time.
Cross-docking does not work for every type of business; there are times when it’s necessary to have stock on hand to mitigate shortages. However, cross docking logistics can solve the need for warehousing and save substantial amounts of money for some businesses.
Integrate Cross Docking Services with SOS Inventory
You don’t need separate cross docking software to fit your needs. From your SOS Inventory account, you can add a location from the Company Menu where you will find a tab called Locations. Select Locations and Add New. The locations list can alternatively be used to edit the location address or attributes of a location. Once your locations are set up, you can choose your desired location on each form that requires one. In addition, you will be able to use the Inventory Stock Status and Inventory Valuation reports to view your quantity and cost basis at each location.
You can also move inventory from one location to another from the Operations Menu tab where you will see Inventory and then Transfers. Choose your from and to locations, then enter items and quantities. You can transfer any type of items here to include serial inventory, lot-tracked inventory, and item groups. When transferred, the value of the item is calculated by the valuation method selected in your settings. SOS Inventory allows you to specify transfers in defined units of measure for items, assign classes and departments for reporting in QuickBooks Online, and assign transfers to a job for costing.
If your business currently uses a cross docking warehouse model or is looking to integrate one in the future. No matter the business model, SOS Inventory is adept at integrating all aspects of manufacturing, production, sales, and fulfillment into a single database that can be accessed from anywhere. SOS Inventory is cloud-based SaaS software that offers unbeatable support and a wide array of tools to fit any business model. Enjoy the rich features of enterprise software at an affordable monthly rate any business can manage.