In a supply chain, speed and productivity are two essential elements in any existing industry. Cross-docking helps businesses achieve a competitive advantage when implemented effectively and flawlessly in order to utilize operations that hone in both speed and productivity. The best conditions can open up significant improvements in a company’s revenues and brand visibility.
What Is Cross-Docking?
Cross-docking is a process that involves delivering goods from a manufacturing plant directly to consumers with little handling involved in between. Two of the best advantages of cross-docking are the reduction of material handling and the reduction of storing goods in a warehouse. Cross-docking allows companies to accelerate shipment to customers. However, cross-docking has risks that businesses must put into consideration before implementing it into standard operating procedures.
Cross-docking eliminates the role of storage in a supply chain. Products are unloaded from a railroad car or trucks and are immediately reloaded to an outbound vehicle heading to a final destination. Products heading to the same destination are consolidated into a transport vehicle. In terms of large shipments, they can also be clustered into smaller groups for easy delivery. Basically, cross-docking creates a leaner and more efficient supply chain.
Pre-Distribution vs. Post-Distribution Cross-Docking
Cross-docking has two basic types; Pre-distribution and Post-distribution.
In terms of pre-distribution, the supplier has the customer’s identification before sending the products. The goods are unloaded, sorted, and repacked according to the predetermined distribution instructions.
In the process of post-distribution, before sorting, the facility, customers, and the demands must be put into consideration. Meaning, the products will have to spend some time in the cross-docking facility. Retailers and suppliers will have more time to make better decisions about the shipment, sales-inventory, sale trends, in-store inventory, etc.
What are the benefits of Cross-Docking?
Goods need little or no time for inventory handling and lower costs are two of the primary benefits to integrating cross-docking into your operations. However, there is still much that you can benefit from it. Some of them include:
- Reduction to labor costs – the goods no longer need picking and storing in a warehouse.
- Improve customer satisfaction – reduce the time from production to customer
- Reduction in warehouse space – there is no need to store the products
What Products Are Best for Cross-Docking?
The list below are the kinds of material that are best for cross-docking:
- High-quality products that do not need inspections during goods receipt
- Vulnerable goods that need immediate shipment such as food or other commodities
- Goods that are ready for sale; barcodes, pre-tagged and pre-ticketed
- Promotional items
- In-demand retail products
- Pre-packaged orders from a warehouse or production plant
When to Use Cross Docking Services?
As mentioned earlier, cross-docking allows companies to transfer goods from one vehicle to another, minimizing the storage period or excluding it completely.
However, there are still other advantages cross-docking can do for your business more than minimizing the storing need. Here is a wide range of issues cross-docking can assist you for more seamless production:
- Cross-docking can handle your goods that are arriving in via container or truck. Once the container is at the port, it is then sent to the warehouse where we unload the container. The container is returned to the port immediately or you can leave it with us to streamline your next shipment.
- Cross-docking can handle mixed freight on a trailer. Often, a trailer is loaded and disarranged; pallets are placed behind other pallets. In this situation, the driver can unload the pallets that require immediate delivery first and return to the facility to pick-up the remaining pallets.
- Cross-docking can assist when your truck is overweight. A cross-dock service provider can minimize your load for a more seamless transaction.
- Cross-docking can assist you if you have loads/goods coming in from multiple vendors in different areas. A cross-docking provider can combine shipments into a single delivery.
- Cross-docking can assist if you are shipping temperature-sensitive goods. Because your goods essentially pass straight through our warehouse, they will not sit and perish.
- Your goods are being sent to a major retailer, but your delivery/driver is a little early from the schedule. You can save time by getting the driver to a cross-docking provider to store the goods temporarily and deliver them at the exact time. The same goes for when a driver is late for delivery, as the cross-docking provider can provide storage and rescheduling with the delivery and retailer on your behalf.
Consider Integrating Cross-Docking Into Your Supply Chain
Products that are best for cross-docking services are those in consistent demand – fast-moving and high in volume. At Southern Gulf Logistics, we have the experience and the tools to handle oversized and complex goods. If you wish to minimize the need for inventory and simply reduce your supply chain costs, give us a call today.
Conclusion
To sum it up, cross-docking is a logistics technique that minimizes the function of warehouses and storage. The main goal of cross-docking is to transfer goods directly from trailers to trailers – eliminating the intermediate storage process. Customers want their orders as fast as possible. Businesses are investing in cross-docking, knowing that it can keep delivery times and costs shorter.
For more information, give us a call today.
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