The Value of Cross Docking
The definition of cross-docking is simply the services where products are received and shipped immediately without having to be stored in a warehouse. There is a lot of value added by using this service especially when it is carried out in the right way. The article will highlight some of the most important benefits of using this service. The first thing the companies experience is a reduction in handling costs and the operating costs.
Companies are experiencing great savings because of the money that used to be paid for storage which no longer needs to be paid with the express transportation. Many companies are also finding a great change when they use the service especially in the reduced storage of inventory. With the reduced use of the inventory companies are saving a lot. The other cost that is so much reduced by the use of this service is in the cost of warehouse. The fact that most of the shipping can be done directly, the companies are realizing they do not have to pay for the warehouses.
Another areas, where there is a lot of saving, is in the fuel costs brought about by consolidating LTL shipments into full loads. It is also a very important thing to note that movement id goods is so streamlined and also much faster where goods are living the manufacturer to the distributor and finally to the customer. What you should make sure before engaging in this service is that all potential partners have the necessary storage capacities. It is vital to confirm whether those you are partnering with have an adequate transport fleet and also if they are using the proper IT system before engaging in the cross-docking services.
You will also realize that there are some of the products that are more fit with the service than others. Some of the products to be transported must be transported immediately, therefore, they need this kind of service more than others. Some of the common ones that should be given priority are perishable goods. Another category of good are the high-quality ones that may not need to be inspected before shipping. When there are goods that are already pre-tagged and they are ready to be sold to the customers, this is the right service that should be given to them. Other items that need this method of shipping are promotional items being launched. It is also better to use the method for the items that are a direct order from the customers or the ones that are pre-packed and pre-picked.successful implementation of the process depend on seamless communications between suppliers, distributors and the points of sale. You will be assured that products will flow in a seamless stream without delay. The perishable goods can be transported immediately.