Cross Docking is a part of logistics procedure where goods from a supplier or manufacturing plant are directly distributed to a customer with marginal to no handling or storage time. The procedure usually involves trucks where goods from one of the incoming trucks are unloaded then directly loaded onto outbound trucks or trailers with no storage space for the goods in between. Many companies that deal with the movement of heavy products employ this kind of a procedure because of the following reasons.
Cross-docking allows for streamlined material handling thereby improving the efficiency at which products are moved through the system. As a result, products can reach their destinations in due time increasing customer satisfaction. This is an indication of better customer service and gives your company a good image and you will also receive good reviews from them owing to the fast streamlined process at which you serve them. Customers also receive their products way quicker than usual. You customers are also able to receive good quality products. Cross-docking makes it easy for your workers to check for damaged goods during the loading stages checking to see if the goods are in the best conditions before they are shipped out to the clients. This will eventually increase customer satisfaction owing to the fewer amounts of damaged goods received.
With cross-docking, there is usually no need for a warehouse to store the products as they can be directly loaded for outbound after being received from a manufacturer. This makes it also cost-effective because packaging and storage costs will be greatly reduced as the need for them won’t be necessary. Also, the level of risks involved in inventory handling will be reduced as there won’t be any concerns about inventory management risks in the warehouse.
Cross-docking also greatly reduces the amount of time it takes for the products to be delivered. Businesses that employ such a procedure are usually located near the eventual destination thereby saving the amount of time taken. This reduces transportation costs because products do not have to travel for long distances as delivery points are geographically located. The amount of fuel consumed as well as vehicle maintenance costs are greatly diminished. There is also a high level of security involved in the transportation of your products. With few hands involved in the loading and unloading, it becomes really tough for your goods to be stolen along the way.
The organization of your business generally improves by making use of this procedure. The docking solution enables you to put in order your products to track them when they come and go and grouping them in the right order. Without knowing the statistics that come with your products, your company will have a hard time managing them. It will help accelerate the order fulfillment process and ensure your customers are happy. As a result, you will be able to save time, effort, and money by employing a cross-docking solution for your business.