The Meaning and Advantages of Cross Docking

Cross docking has become an essential factor in growth for a logistics and warehousing organization because speed and productivity matter a lot. Providing cross docking in Miami and across Florida is a significant service that can be implemented to achieve a competitive advantage. If you’re using cross docking in the right circumstances, it can provide you a lot of benefits, including; efficiency and handling times. Let’s discover what cross docking means and then, take a look at its advantages and also downsides.

What is Cross Docking?

If you’re looking for a logistics procedure where multiple loads should be combined and distributed directly to customers within a quick time, then cross docking service is for you. Cross docking takes place in a distribution docking terminal, and it usually consists of trucks and dock doors on inbound and outbound sides of the terminal with minimal storage space.

If we define the process with the “Cross Docking” name, then one can explain it as the process of receiving the products through an inbound dock and then transferring it into the outbound transportation dock.

Where is Cross Docking Used?

Cross docking process will not work for every business, and it may not suit your warehouse needs. You have to figure out whether it is suitable for your business or not. If you need advancement in the delivery system of your shipments, then there’s no better option than cross docking. The FMCG companies are benefited the most by the cross docking process because these products need to be delivered quickly. The delivery process for various packaged products is also the quickest by using the cross docking approach.

Benefits of Cross Docking

Here are some reasons to implement cross docking for your inventory.

• Minimal Storage Cost

Cross docking is cost-effective. Your loads are not stored over a long time. You do not have to pay large amounts for the storage of your goods. In this way, your storage costs are reduced. They are just organized and distributed as they reach the warehouse. This is not only a cost-efficient, but also a time-efficient process.

• Reduced Transportation and Distribution Costs

Different loads destined for same locations can be transported at once, it will reduce your transportation costs. You do not have to pay for multiple tranportation trips to move only your goods. The transportation and distribution for cross docking is really effective, and your load is never late on its destination.

• Products Reach Customers Faster

Another huge advantage of cross docking is its fast delivery ability. Shipments will be delivered to customers faster. In this way, your customers will be happier with your services.

• Fewer Risks for Inventory Handling

In cross docking, there are no warehouses needed to store your products for a long time. It is the reason that there is no need to keep the inventory of your products.  

Downsides of Cross Docking

Cross docking is a really efficient process as you can handle your shipments easily and more efficiently. Your transportation and storage costs are reduced, and you have fewer risks for your inventory handling. These risks include storage capacity problems or mismanagement issues.

• Storage Capacity Problem

As the warehouse is eliminated from the process, your costs are notably reduced. But there is an issue if the company doesn’t have the required capacity for their inventory storage, then the excessive burden can be challenging. Here cross docking doesn’t help you to solve your problem.

• Management and Attention Required

The cross docking system cannot run by itself, and you need someone to follow up the system. It takes some investment to make this system work, and the labor costs are also inevitable for the follow-up process.

Conclusion

Cross docking will help you with your business. Your costs are notably reduced. The delivery time for your products is faster, and there is almost no risk. You should just need to consider your delivery needs and if you decide that this system fits your needs, there is no better way then cross docking to use.

If you are looking for a trusted partner to ship your loads and offer cross docking services, QuickLoad can help you match your cross docking needs with right business partners to reduce your warehousing costs.