Cross docking is one of the practices that have enabled different companies to transport their product using the shortest time possible. 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 is properly practiced it serves to save the companies not only time but also cash. One reaps some benefits when practicing cross-docking as the practice has proved to be efficient in reducing the handling cost as well as the operating costs. One also saves on storage of inventory and also the warehousing costs as the goods are not stored in the warehouses. 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.
When one is interested in initiating the cross docking services they need to ensure that their potential clients have the storage capacities. One also needs to check if their partners have adequate transport fleet to transport all the products in time. Your partners also need to have a fully functional IT system to aid communication.
Some of the products being shipped need the shippers to employ cross-docking to avoid losses. One instance, when a shipper needs cross-docking, is when they are dealing with perishable goods which need to be transported using the least time possible to avoid registering 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. Another kind of products which are suited by cross docking are products which are shipped ready for sale such as items which have pre-tags including RFID and bar codes. If your company ships products for a launch or to be used in promotions, or in the case of products which have constant demand in the market, one can ship them and employ cross-docking strategy. Companies shipping pre-packed and pre-packaged products can also rely on cross-docking to reduce the cost.
For cross-docking to be successful there is the need to have constant communication between the manufacturers and also the distributors and suppliers. Such necessitates the need for logistic software integration which aids the suppliers, vendors, and shippers as they can track inventory that is in transit.