Two of the most prized traits in logistics are speed and productivity. When you can put them together in one place, customers are happier. Cross docking is a practice that not only increases shipping speed, but offers additional benefits than other shipping practices.
How It Works
Companies and their distributors keep stocks of product on hand in warehouses, even for a short period of time, before shipping them out to customers. That requires storage space, labor, and additional transportation before it reaches the customer. Additional handling increases the risk of damage, and adds more time to the duration of transport.
Cross docking eliminates one or more steps in the equation. Utilizing just-in-time shipping, freight moves from a receivables intake dock directly into the outbound shipping where it continues its journey toward the customer. There is no warehousing or long-term storage, shortening the journey from manufacturer to the customer.
Why would cross docking be better than the standard warehouse distribution model? Here are some of the benefits from cross docking.
Reduced Damages
More handling means more possibility of damage. But when you remove two steps from the process, you decrease the possibility of damage. Because it’s not necessary to move product into and out of storage, handling is minimized. Items simply roll from an incoming truck and to an outgoing truck with little or no handling, giving you less damage and less loss.
More Cost Savings
Warehouse storage costs money. While it may be necessary to have increased inventory available for projected increases in demand, shipping product as soon as it is ordered saves on storage as well as decreases the length of time needed for transport. Shipping time is also reduced, so the items keep moving instead of stopping, arriving in the hands of the customer faster.
Time Savings
Because the shipping process takes so much time, having a third party to help with packaging, repackaging, pickup, delivery, and customer follow up frees up time for you and your company to focus on business. Adding cross docking to your process outsources one more step from your supply chain, giving you back a little more time as well.
Cross docking is also useful when you need to combine shipments from several vendors to a single customer.
Our Cross Docking Services Add To Your Company’s Efficiency
3PL Worldwide offers your company a wide range of logistical services including cross docking for shipping and skipping the warehouse. We work with you to coordinate a wide range of transportation to ship your products directly to your customers. Contact us today at (877) 444-0002 or use our online contact form to get started outsourcing your supply chain.