The definition of cross-docking is simply the services where products are received and shipped immediately without having to be stored in a warehouse. There are so many advantages that can be associated with the service especially when it is implemented in the right way. The article will highlight some of the most important benefits of using this service. The businesses benefit so much from the reduced costs in handling and operational charges.
Initially, businesses would pay so much money for storage of good but with the express transportation a lot of expenses are reduced which is a huge benefit to the companies. The other change that many of the companies that are using the service experience is in the reduced storage of inventory. With the reduced use of the inventory companies are saving a lot. The other cost that is so much reduced by the use of this service is in the cost of warehouse. Now that products can be shipped directly is has become unnecessary to pay for the warehouses.
Another areas, where there is a lot of saving, is in the fuel costs brought about by consolidating LTL shipments into full loads. There is also a faster and streamlined movement of products from the manufacturer to the distributor and then to the consumer. The most important thing to ensure is that all the potential partners confirm that they have adequate storage capacities before staring at the cross-docking services. They should also confirm that they have adequate transport fleet and adequate IT system to operate the cross-docking services.
When you start this service you will realize that there are some products that are more suited to it than others. Some of the products to be transported must be transported immediately, therefore, they need this kind of service more than others. Some of the common ones that should be given priority are perishable goods. Others that can be shipped directly are high-quality items that do not require quality inspection before they are shipped. The other category of goods that need this service most are those that are already pre-tagged and they are ready for sale to the customers immediately. Other items that need this method of shipping are promotional items being launched. When you have pre-packed and pre-picked items or customer orders, you will find such an arrangement being the most suited.When there is a flow of communication between the suppliers, distributors and the points of sale then the process can be very successful. You can have the assurance that goods will reach the destination without delay because of the seamless communication. The perishable goods can be transported immediately.