• Cross docking solutions are just-in-time delivery of components, parts, machines, or materials to the manufacturers, or end-users, resulting in reduced storage requirement.
  • Suppliers are taking efforts to reduce inventory cost and time required for delivery due to the increased rate of competition in the logistics industry. With the introduction of just-in-time concept, suppliers provide instant delivery of goods which helps end-users reduce inventory cost, and ensures continuity in operations.
  • In the backdrop of increasing demand for operation cost reduction across time-sensitive industries, introduction of cross docking solutions allows manufactures to concentrate on the manufacturing process without worrying about the availability of raw materials
  • Products which are highly perishable, have constant demand, and which are pre-tagged and are ready to be used are usually suitable for cross docking solutions.

Growing trend of just-in-time delivery expected to drive the demand for cross docking solutions

  • Manufacturers are providing material delivery exactly on time, at the right location, in order to gain competitive advantage. This reduces the storage facility requirement and also cuts down the material handling costs of users. Hence, manufacturers providing cross docking facility are preferred over manufacturers who do not provide just-in-time delivery. This offers significant competitive advantage to manufacturers, and helps them in gaining a larger market share in the cross docking solutions market.

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Huge cost involved in material handling and additional management expected to restrain the growth of the cross docking solutions market

  • Increased material handling cost borne by manufacturers is one the important factors expected to restrain the growth of the cross docking solutions market.
  • Cross docking solutions entail additional cost for material handling and infrastructure; besides, careful management and monitoring is required, which results in increasing the overall cost for the manufacturer.
  • This additional cost is expected to be a restraint to the demand for cross docking solutions in the forthcoming years.

North America to dominate the global cross docking solutions market

  • North America is expected to account for a notable share of the global cross docking solutions market during the forecast period.
  • This dominance is primarily due to the presence of numerous industries in North American countries.
  • The market in the U.S. is projected to expand at a considerable pace during the forecast period, which in turn is anticipated to drive the cross docking solutions market in the region.

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Cross docking solutions market in Asia Pacific to expand significantly

  • The cross docking solutions market is expected to expand at the highest rate in the Asia Pacific region
  • The reason for cross docking solutions market growth includes the continuous growth in the manufacturing and agricultural industry. Also, the growth of e-commerce in this region is expected to drive the demand for cross docking solutions to a great extent in the forthcoming years.

The top five players are expected to account for 30% to 35% share of the global cross docking solutions market. A few of the key players operating in the global cross docking solutions market include:

  • A.P. Moller – Maersk
  • C.H. Robinson Worldwide, Inc.
  • CEVA Logistics
  • Ryder System, Inc.
  • World Distribution Services