Cross-docking refers to the process of obtaining goods directly from the manufacturer and shipping to their destination without storing them in warehouses. The process is relevant to the companies because it saves them precious time and money. Many companies may decide to be using the method as it has several advantages. The following advantages are what will make many companies switch to the process.
The first thing the companies have experienced is cut prices both in the handling of goods and in operations. Since the goods are not being stored, there are lees of good handling as there is no packing and unpacking goods in the warehouses. That automatically reduces the need for store inventory. Since the goods are not being stored in the warehouses, it goes without saying that there will be no need for store inventory. That will mean that the warehouse costs will reduce automatically. Companies spend a lot of there money paying for warehouses and the people to man them. Now that can be sent directly, the companies will save a substantial amount of money used to managing warehouse.
Also the companies will enjoy reduced fuel costs because they will when due to consolidating shipments into full loads. Another advantage is that the goods will be leaving the manufacturer to the distributor and the customer faster. All the perishable goods will be transported faster to their destination without thinking about cooled transportation system. The perishable goods can be shipped without passing through the warehouses. That will reduce the number of electricians working in these warehouses which is a cost reduction to the companies.
When you compare the cost of building a warehouse and that of cross docking terminal, you will find that the terminal is far much less expensive. At the same time transportation of goods is much less expensive as you will be able to transport full loads. It is also an easier way to screen products. With cross docking services, consumers get what they want much faster. There are some products that are more suited for this kind of transportation than others. Some of these most suited are the high-quality items that require no quality inspection.
For the process to be effective, it will be determined by some factors. The process will depend much on the handling method of various goods for its success. The complexity of the load is also a major determinant.
The good thing is that the method is flexible and efficient enough to meet the customers” needs and changing demand. It is the desire of every company to make sure that their clients’ needs and shifting demands are met. The service will go a long way in helping companies achieve that goal.