Mainly there are two important parts for growth in the supply chain, which are speed and productivity. Cross-docking is just one strategy to optimize these competitive supply chain benefits. Cross-docking is a method to supply chain management for all purposes. At times, cross-docking services can improvise handling times and efficiency.
What is a cross-docking service?
Cross-docking is a technique in logistics management, which includes unloading goods from the manufacturer and directly loading the goods to the retailers. It will reduce typical warehouse logistical procedures and save money and time, which facilitates the shipments with a great chance for sales. It decreases the requirement to store goods in a warehouse. It involves much less material handling and inventory delivering products from a manufacturing company. It is used to obliterate the requirement for storage.
When are cross-docking services used?
Cross docking is very useful for companies who don’t want more expenses of overpriced warehouses and using the facilities of warehousing. It involves the transportation of products from an inbound carrier to an outbound carrier with less to no warehousing and material control. Once these products occur at a cross-dock facility, they are rapidly categorized and transported directly to the landing station. The cross-docking warehouse has very less storage capacity than a distribution center. The inbound shipments reach the receiving dock, then the goods are sent directly to outbound destinations.
It decreases costs because of the least storage area required and less packaging. This technique looks like a universal promotion for the supply chain. Some businesses will benefit from this technique significantly, which include as follows:
- Raw materials and inbound supplier components
- Easily spoiled products, foods, and beverages
- Sorted products or parcels
- Businesses that utilize cross-docking services
Advantages of Cross-Docking Services
The cross-docking process will not fulfill all warehousing needs, so it is important to understand the advantages and the risks that come with it. The main advantages are listed below.
- Saving storage space. Cross-docking emancipates the main storage space. The reserved space will benefit inventory cost savings. It reduces delivery time and makes a more flexible chain of supply by saving time dispatching goods. This will improve customer satisfaction.
- The number of procedures for handling goods is markedly decreased. Mainly quality control, unloading, dispatch of products, and order conditioning are beautifully maintained.
- Cross-docking will improve the profitability of the facility that utilizes this technique due to the time constraint.
Disadvantages of cross-docking services
- Time-consuming
- Need for reliable suppliers
- Must require proper planning and coordination
- Requirement of enough transport carriers
- It may cause damage to goods.
Different Types of Cross-docking Methods
There are mainly three methods of cross-docking, which are continuous cross-docking, consolidation arrangement, and deconsolidation arrangement.
Continuous cross-docking is defined as the fastest and most straightforward method. Materials and goods transfer continuously to a central location. The materials are moved immediately from an inbound truck to an outbound truck.
The consolidation arrangement method is defined as several products or freight loads merging into significant loads in the cross-docking. This technique is more beneficial than the cross-docking facility.
Deconsolidation arrangement is the opposite of consolidation arrangement, which splits large product loads into multiple smaller loads for transportation to become easier.
At National Freight Forwarding Inc., we offer an ultramodern warehouse and cross-docking facility and good inventory and goods tracking. Get in touch with us and one of our consultants will explain a plan in detail to grow your business.
