Cross docking is one of the practices that have enabled different companies to transport their product using the shortest time possible. The main reason why cross docking helps the shippers to save cash and time is the fact that they do not have to store their products in a warehouse and thus one receives their goods as soon as they are shipped in. The practice has proved over the years to save the shippers their valuable time and 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.
One of the factors that a company needs to keep an eye on when they are interested in cross-docking is checking whether their potential partners have enough storage facilities. It is also necessary for the company to check if their potential partners possess a transport fleet to ensure products are transported in good time always. 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. Companies which are shipping products which are ready for the local market which are characterized by the presence of pre-tags such as bar codes and RFID should also save time and money through cross docking by not storing the products in the 3PL warehouses. If the products that have been shipped are being used for promotional purposes or during a launch, or when the products have a constant demand or low variance in demand, they are also suited when transported through cross docking practice. When a company ships products which are pre-packaged or pre-picked which are shipped as orders from their customers, they are better handled through cross-docking.
The level of success of cross-docking depends on the establishment of efficient communication between the chain from the manufacturer to the client. To make sure that there is efficient communication between the partners involved, there is the need to have software in place that enables them to trace their inventory in transit.