Cross docking is a logistics practice intended for unloading materials from a semi-trailer truck or a railroad car and putting all the materials into outbound trailer cars, rail cars, and outbound trucks with minimal or no storage at all. This can be done for changing the conveyance and also for sorting out materials that are intended for varying destinations. It may also be done to be able to combine materials from various origins right into transport vehicles having similar destinations.
There are several factors to consider before you decide to implement cross docking in a certain organization such as at this website. Every company has its own set of priorities in terms of cost, space for storage, product types, and geographical considerations. This is why you have to weight pros and cons of cross docking implementation into the company’s supply chain to be able to come up with an educated decision.
Advantages of Cross Docking
It helps in reducing material handling and in storing products inside a warehouse site. There is also no need for large warehouse areas to hire for the company. You have to think about the reduced labor costs too because there is no packaging and storing of materials. It also requires reduced time in reaching customers. Transportation can be expected to have fuller loads for every trip and thus letting the company save on transportation costs while being environment friendly too. It is easier to move products quickly with the help of cross docking and it makes it easier for the company to screen on the quality of the products. There are processes like pick location and order picking that are eliminated. It is cheaper to construct a cross docking terminal than to construct the regular storage warehouse. It is also easier to increase the turnover of products since the products can move faster through cross docking. They only take less than 24 hours in the process. Cross docking can also reduce the overall distribution cost since products that are to be sent in the same endpoint can be transported as one full load.
Considerations on Cross Docking
The whole process requires attention, time, and sufficient planning for it to be efficient. Setting up the cross docking terminal structures may take time and some capital. There may be some suppliers who are not able to deliver products to the cross docking terminal. For this process to be effective it is necessary to have a high volume of products.
Other details can be accessed at https://www.youtube.com/watch?v=MlvWcr0sOEo .