The primary purpose of cross docking is to minimize the amount of handling required in the retail supply chain. Therefore, cross docking minimizes the handling and storage time of the products from the supplier to a manufacturer and then finished products from the manufacturer to the customer. Generally, cross docking is performed at a warehouse where one side is used for inbound items and the other one for outbound items. Therefore, if executed properly, the freight that underwent the cross-docking process will remain in the warehouse only for a few hours.
Knowledge of the benefits of cross docking services can help you make an informed decision about whether your business needs it or not. One has to consider numerous factors while implementing cross-docking into an organization. With different priorities in terms of warehouse space, costs, geographical specifics, and product types, every organization will have a different level of impact on their organization. Below-given list of advantages will give you comprehensive knowledge about cross-docking.
Reduces Material Handling – Investment in cross-docking services will reduce the amount of time and resources used for material handling. Direct unloading and reloading of goods will reduce the storage time of goods, thus naturally reducing the material handling time. Having the back of an experienced and professional cross-docking service in San Diego will give you a competitive advantage over the edge.
Reduces Need for Large Warehouse Spaces – As the storage time is reduced by directly reloading the goods, it will also reduce the need for large warehouses. You don’t need to invest in large warehouses or outsource warehousing services if you have an effective cross-docking system. With appropriate cross-docking implementation, one can reduce the need to store products in the warehouse.
Helps in Reducing Labor Costs – In cross-docking, goods are directly reloaded in the other transport without peeling off the packaging, which saves the packaging cost and also lightens the work of laborers. Besides this, cross-docking reduces the labor cost required to manage goods in a warehouse or inventory.
Saves Transportation Costs – In cross-docking, the transportation has fuller loads for each trip which saves additional transportation expenses. Apart from being pocket-friendly, cross-docking is also environment friendly.
High Product Turnover – With everything moving quickly through the cross docking terminal, products get a high turnover. The products usually spend less than 24 hours in the warehouse, which saves time and labor and ensures high product turnover.
Low Construction Cost – Construction of a cross docking terminal is comparatively less expensive than an average warehouse. Even the maintenance of cross-docking terminals is relatively low-cost and more convenient than warehouses.
Reduces Overall Distribution Cost – Cross docking is light on the pocket as it reduces the overall distribution cost of the products destined for a similar endpoint. Products destined for a similar endpoint are transported as a full load, reducing the overall cost.
Eliminates Mid-Processes – Due to the short storage time of products, cross docking doesn’t involve any processes between deliveries. Thanks to cross-docking due to which, suppliers and distributors are able to eliminate processes like pick-location and order-picking.
The Bottom Line
Outsourcing cross docking services from a professional and knowledgeable company can significantly develop your business. Cross-docking will save you time as well as money. Many companies utilize cross docking services as a part of their regular operations mix. Meanwhile, some companies only opt for cross-deck and freight running services in San Diego when necessary. Depending on your company’s requirements, you should definitely try the cross deck for your company’s functional advantage.