Study explores crossdocking trends

Report indicates that more and more companies are finding value in the practice’s ability to take costs out of the system, manage inventory levels, increase efficiencies and accommodate unpredictable customer demand.

By ·

Cross-docking is on the rise, according to a new study released today by Saddle Creek Corp., a nationwide third-party logistics provider. The “2011 Cross-Docking Trends Report” indicates that more and more companies are finding value in the practice’s ability to take costs out of the system, manage inventory levels, increase efficiencies and accommodate unpredictable customer demand.

The report is based on online survey responses from more than 200 logistics industry decision makers. Respondents represent a solid cross-section of the logistics industry with backgrounds in warehousing, distribution and/or transportation.

A follow-up to the “2008 Cross-Docking Trends Report,” this year’s study explores the latest cross-docking practices, benefits and challenges, outsourcing trends and more. Research highlights include:

  * Cross-docking has increased significantly in the past three years. More than two thirds of survey respondents (68.5%) currently cross dock – up from 52% of respondents in 2008.
  * Cross-docking is a viable strategy for adapting to challenging economic times for many respondents. Of those who have been cross-docking for four or more years, 40.3% say that recent challenging economic conditions have prompted them to increase cross-docking somewhat or substantially.
  * The biggest benefits of cross-docking are improving service levels (37.9%), reducing transportation costs (32.4%) and consolidating shipments to destination (32.4%).
  * More companies are recognizing the value of outsourcing cross-docking. In fact, a significantly larger percentage of today’s cross-dock practitioners (40.4%) use a 3PL either exclusively or in addition to in-house resources than in 2008 when just 32% of respondents who cross-docked reported tapping a third-party.

“Survey results support what we’re seeing firsthand in the marketplace today,” said Tom Patterson, senior vice president of warehouse operations at Saddle Creek. “Companies are realizing that cross-docking can help them to increase speed to market and improve service levels while reducing warehousing and transportation costs. Outsourcing the function allows companies to leverage outside expertise and integrated logistics capabilities without making an overhead investment.”

For the complete 2011 Cross-Docking Trends Report, visit http://www.saddlecrk.com/xdock


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

3PL · Best Practices · Saddle Creek · · All Topics
Latest Whitepaper
Mobile Solutions: Improving Supply Chain Efficiencies
To meet customer's ever-increasing service expectations and improve their business efficiency, companies are looking to their supply chain operations – especially material handling and warehouse operations managers.
Download Today!
From the February 2017 Modern Materials Handling Issue
In warehouses and DCs, planning solutions tend to take a back seat to execution system functions. Vendors are working to boost the trust factor using tools that break down forecasts and blend with analytics.
Automated Storage on the Move
Receiving 101: Setting the Table for Success
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Johnson & Johnson: A vision for automation
J&J Vision Care brings together a variety of automated technologies, including an innovative...
Using AGVs at LEDVANCE
The lighting manufacturer reaped savings by reducing maintenance costs and product damage, and using...

System Report: Sustainable Distribution at REI
Specialty outdoor retailer REI’s new distribution center brings together the next generation of...
System Report: Whirlpool puts mobile robots to work
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to...