Crossdocking is an effective solution leveraged to improve transportation service to customers and reduce handling and storage costs. It allows clients to route product from one or multiple manufacturing site(s) to a Nexus distribution center strategically located near to the designated customer population. Product is shipped in bulk from manufacturing plants to Nexus where it is deconsolidated into multiple shipments and delivered directly to customers. Additionally, special packaging and labeling requirements can be met as a value-added function of the Nexus crossdock service offering.
Crossdocking is a sound strategy for companies that:
- Find they are consistently shipping from manufacturing site(s) to multiple customers, resulting in frequent and costly small less-than-truckload shipments that have to travel long distances. Crossdocking allows companies to send bulk shipments via full truckload, intermodal container, or railcar to a strategic Nexus distribution center that is closer to the customer base, making pool delivery possible and/or reducing the LTL expense by reducing the distance to the destination.
- Require the unloading and merging of bulk shipments from various points of manufacture for the combining of specified SKU’s to fulfill individual or store orders.
- Have a regional customer base that is far from the origin of manufacture and demands a short delivery window between the time of order placement and the requested delivery date.
- Wish to reduce the amount of excess inventory stored at their own facility or manufacturing site, either to reduce inventory carrying costs or simply due to limited available space.