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 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. One also saves on storage of inventory and also the warehousing costs as the goods are not stored in the warehouses. When practicing cross docking when a company is shipping products, the chain of distribution is streamlined making sure that clients get their orders in time while a company also saves on fuel costs as their shipments are consolidated into one full load.
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 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 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. Another type of a company which should consider cross-docking is a company that ships high-quality products which require no inspection when one is receiving them. 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 level of success of cross-docking depends on the establishment of efficient communication between the chain from the manufacturer to the client. Such necessitates the need for logistic software integration which aids the suppliers, vendors, and shippers as they can track inventory that is in transit.