Cross docking has gained popularity among the shippers as they have served to save the shippers not only cash but also the time that they would have used to transport their loads. 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 cross docking practice thus primarily serves to save the shipper both time and 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. The company also saves on the fuel costs as the LTL shipments are consolidated to full loads and also enjoys a streamlined chain and thus the goods reach the distributor and thus the customer in time.
One of the factors that a company needs to keep an eye on when they are interested in cross-docking is checking whether their potential partners have enough storage facilities. One also needs to check if their partners have adequate transport fleet to transport all the products in time. 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. One good example is perishable goods which need to be shipped quickly as slow transportation 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. There are other products which are ready for sale to the clients which are characterized by a pre-tag such as a bar code or a RFID chip which are also suited for cross-docking. Items that have been shipped for a launch or for promotional purposes also qualify for cross-docking as well as staple products that have proved to have constant or low demand variance over the time. Companies shipping pre-packed and pre-packaged products can also rely on cross-docking to reduce the cost.
The success of cross-docking is dependent on a number of factors such establishment of constant communication between the manufacturer, suppliers, and distributors. To ensure efficient communication the vendors, the suppliers and also the shippers need to have a software that helps them to track inventory in transit.