How Axell uses cross docking for optimal logistics
With over 90 years of experience, Axell Logistics knows exactly what it takes to achieve optimal logistics. Cross docking is the key to making logistics fast and efficient. By outsourcing cross docking processes to Axell Logistics, you save time, reduce costs, and minimize inventory management. This way, you can efficiently meet consumer demand.
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The benefits of cross docking for your supply chain
Shorter delivery times
At Axell Logistics, individual shipments are collected and consolidated at a distribution center, then immediately transferred from incoming transport to long-haul trucks (linehaul) or local delivery vehicles—without storage.
This enables faster sorting and shipping of goods, significantly reducing lead times. This is especially crucial for companies operating under just-in-time principles, where timing is key and faster delivery is essential. A well-coordinated cross-docking process at Axell Logistics ensures smooth goods flow and enhances flexibility throughout the entire supply chain.
Lower storage costs
Cross docking eliminates the need for long-term storage. Although it may require an initial investment, companies save considerably on warehouse costs. Because products stay only briefly in our distribution center, less storage space and fewer racks are needed. This leads to lower rental costs, faster turnaround times, and reduced demand for complex storage infrastructure. Additionally, energy costs decrease since less space requires cooling or lighting. More efficient goods flow also means capital is not tied up in inventory, allowing companies to operate more flexibly and respond faster to market demand.
Less handling
Traditional warehouse management involves multiple steps such as receiving, storing, order picking, and moving goods. While handling is a necessary part of logistics, distributed cross docking reduces these additional steps by transferring products faster—directly from incoming to outgoing transport. This reduction in handling is particularly beneficial for companies where fast turnaround times are essential.
However, it is important to note that the efficiency of the cross-docking process depends on the type of business. For example, e-commerce companies typically require piece-pick-and-pack systems, which do not fit within a cross-dock operation. In such cases, traditional handling methods may better align with operational needs.
Ultimately, cross docking leads to a more efficient supply chain and lower labor costs. It’s a win-win situation for companies aiming to optimize their processes.
Efficient inventory management
Inventory management also becomes more efficient thanks to cross docking. Because products are not stored or only temporarily stored, you need to hold less stock. This reduces the risk of obsolete or excess inventory and improves cash flow, as less capital is tied up in unsold products. Companies can thereby respond more quickly to changing demand and seasonal trends.
Our values
Axell Group fosters an entrepreneurial mindset within our organisation. We encourage innovation and proactive action to create new opportunities and serve our clients effectively.
Respect is the foundation in everything we do. We value each individual and their contributions, ensuring a harmonious and productive work environment.
Transparency is crucial in our business conduct. We ensure that all information is clear and accessible, so clients and partners are fully informed about their daily business.
Our decisiveness enables us to act quickly and effectively. We make well-informed data driven decisions aimed at achieving the best results for our clients and our organization.
At Axell Group, we are always focused on finding practical and feasible solutions. We thoroughly analyze challenges and develop solutions that contribute to our clients’ success.
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Frequently asked questions
Which Companies Are Suitable for Cross Docking?
Cross docking is ideal for retailers, logistics service providers, manufacturing companies, and suppliers of perishable goods. Companies with fast turnaround times and well-organized supply chains benefit the most.
Does Cross Docking Contribute to Sustainable Transport?
Cross docking contributes to more sustainable transport by improving the overall efficiency of the supply chain. By reducing the need for long-term storage, the number of transport movements to and from warehouses can be limited, potentially saving fuel. Additionally, better-coordinated goods flow allows for more efficient route planning, which can lead to lower CO₂ emissions. However, it is important to emphasize that the sustainability benefits of cross docking depend on the specific logistics setup and transport structure of each company.
Is Cross Docking Suitable for My Industry?
Cross docking is particularly beneficial for companies with high inventory turnover, short delivery times, and just-in-time logistics. If your industry relies on fast distribution and a well-coordinated supply chain, this model can significantly increase efficiency and reduce costs.
What Is the Difference Compared to Traditional Warehouse Management?
In traditional warehouse management, goods are received, temporarily stored, and then picked and shipped. With cross docking, storage is minimal or even unnecessary. Products are transferred directly from incoming to outgoing transport. This shortens order processing times, lowers storage costs, and speeds up the flow of goods.
Looking for personalized advice?
Looking for more information about cross docking at Axell Logistics or need personalized advice? Contact us. Our experts are ready to assist you with all your logistics operations and needs.
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