When It Comes To Goods Distribution, Could You Benefit From Cross Docking?
Many distribution sectors adopt the "just-in-time" delivery mantra and want to make transportation as efficient as possible to avoid unwanted costs and maintain a competitive advantage in the marketplace. These organisations are always looking to improve, and the industry is constantly developing new distribution methods to keep pace with supply and demand. If you are also under pressure to get goods from one point to another as efficiently and cost-effectively as possible, why should you think about cross-docking and what benefits would it impart?
Short And Sharp
Cross-docking is probably the quickest form of processing in a warehouse environment. In its purest form, when goods are delivered on one vehicle, they are directly loaded onto an outbound truck, so there is little or no storage at all. In other words, the goods are sorted rather than stored, and the warehouse facility is used as a processing centre instead.
Benefiting Industries
This type of distribution method is increasingly popular across a range of different industries. Retailers and car parts companies value the rapid turnaround times associated with cross-docking so that they can get the order into the customer's hands as soon as possible. As you can imagine, this is a favoured solution whenever perishable goods are involved, and time is definitely of the essence.
Careful Structuring
To benefit from this approach, the logistics company has to invest heavily in automation and rely on an adequate and predictable transportation method. Each inbound and outbound journey has to be planned with military precision, and everything needs to be tracked from origin to source.
Consolidated Methods
Some cross-docking methods involve consolidation, where several smaller loads arrive at one processing point and are immediately consolidated onto a larger outbound truck. It is also possible to reverse this process where a larger load comes from a primary distribution point and is then broken down and immediately dispatched onto smaller trucks for last-mile delivery. You cannot beat this method of distribution when everything is running smoothly and as it should. It will also cut down significantly on costs as there is less inventory handling, lower labour charges and reduced warehouse storage liability.
Exploring Options
Do you feel that your company could benefit from cross-docking and that this would improve your logistics operation? If so, talk with a 3PL logistics warehousing company that fully understands how to do the work and has invested in the necessary tools to make it happen.
