One of the practices that have enabled companies that ship different commodities save time and also cash during the period of transportation is cross docking. The increased transportation speed can be attributed to the fact that goods are received and immediately shipped out without putting them in a warehouse. The practice has proved over the years to save the shippers their valuable time and also cash. By practicing cross docking one enjoys a number of benefits such as the reduction of the operating cost as well as the handling cost of shipping a given consignment. By not storing your goods in a warehouse one also saves warehousing costs as well as the storage of inventory thus reducing the cost of shipping products significantly. A company that practices cross docking when shipping in products also saves on fuel costs since their LTL shipment is consolidated into one full load and also ensures their clients get their goods in good time since the chain of distribution is streamlined.
Before a company decides to practice cross docking they need to determine whether their partners possess enough storage facilities. For cross docking to be successful, one also needs to ensure that their partners have a functional transport fleet to carry the loads. Your potential partners also need to have an operational IT system to track the transportation of the loads.
Some of the products being shipped need the shippers to employ cross-docking to avoid losses. A good example of products that are better placed to be transported through cross-docking is perishable products which need to be transported using the least possible time as delays will lead to losses. Companies which are shipping high-quality products which do not require any further inspection are also suited by cross-docking as they do not experience any delays during shipment. Companies which are shipping products which are ready for the local market which are characterized by the presence of pre-tags such as bar codes and RFID should also save time and money through cross docking by not storing the products in the 3PL warehouses. If the products that have been shipped are being used for promotional purposes or during a launch, or when the products have a constant demand or low variance in demand, they are also suited when transported through cross docking practice. When a company ships products which are pre-packaged or pre-picked which are shipped as orders from their customers, they are better handled through cross-docking.
The success of cross-docking is dependent on a number of factors such establishment of constant communication between the manufacturer, suppliers, and distributors. Such necessitates the need for logistic software integration which aids the suppliers, vendors, and shippers as they can track inventory that is in transit.