Guide to Cross Docking

When it comes to costs and warehousing, every organization has its own priorities and they need to consider and weigh up the disadvantages of implementing cross docking into the organization’s supply chaise in order to make the right decision. There might seem to have advantages when cross-docking especially because in logistics jargon, when an item sits, cost is entailed until it reaches its intended destination. The reality to cross docking is that a product from a supplier or manufacturing plant are distributed directly to a customer or retain chain with very little or no handling or storage time, and so less prices is paid.

The disadvantage of a cross-docking operator is that it requires much management attention, time, and planning which are all necessary to make it work effectively. We can look at it this way, that when cross docking is implemented or before it is implemented, there is a need to set up the cross docking terminal structures and link them to semi-trailer trucks or railroad cars into outbound trucks with little or no storage in between, and this would require time and capital unlike warehousing where, the job is to establish a warehouse, advertise the facility and maintain a good account of its inventory. A cross-docking client can take advantage of this facility since they have a comfortable reliance that suppliers would deliver their goods to the customer without breaking up the entire supply chain through cross-docking terminals.

Productivity of a supply chain becomes the more important factor for a cross-docking client since their priority is speed to grow their organization and achieve a competitive advantage. This is especially true these days since customer satisfaction weighs heavily on an organizations survival. With a reliable supply chain, one can keep customers, otherwise, customers are lost. Image the convenience of picking up exactly the right item that you have been looking for, and paying for it electronically over a website, but with the exception that it takes sometime before you can get hold of that item, while another company that sells exactly the same item and price, and allows you to have them much earlier than its counterpart. This type of customer satisfaction has its grounds on the organization’s supply chain management.
Practical and Helpful Tips: Businesses

With cross-docking a lot of companies have benefited from reduction of labor costs because it does not need to be packed and stored, reduction in time in packing from production to customer, which aids customer satisfaction, and reduction in the need for warehouse space, since there is nothing to be stored.
3 Lessons Learned: Businesses

Manufacturing cross-docking, distribution, transportation, retail, and opportunistic cross docking are the different types of cross docking; the last type being used in any warehouse by transferring a product directly from the goods receiving docks to the outbound shipping dock to meet a know demand.