When you hear the word cross-docking, it should bring to you the idea of collecting products and transporting to the destination without having to store it first. Implementating the process fully will bring value to the companies as it is a time and money and time-saving. Why many companies may switch to cross docking process is because it has a number of advantages. The following advantages are what will make many companies switch to the process.
The first thing the companies have experienced is cut prices both in the handling of goods and in operations. The little or no use of the warehouses and therefore goods are not being packed and unpacked from them, and thus the handling cost goes down. That means storage of inventory will become less and less useful. Since goods are shipped directly to their destination, there is, therefore, no need of keeping storage inventory. That means since the warehouses are not in use, the cost definitely goes down. practically companies spend so much money paying for the warehouses and managing them. With goods moving to their destination directly, the companies will breathe a sigh of relief as far as the warehouse money is concerned.
Also the companies will enjoy reduced fuel costs because they will when due to consolidating shipments into full loads. Another advantage is the faster movement of goods from the manufacturer to the distributor and reach the customers faster. The perishable goods will not need to stress the logistics team with cooling transportation as they will be taking less the to reach their final destination. The perishable goods will not be spending time in the warehouses. With no perishable goods in the warehouses, the electricians will be fewer reducing the cost for the companies.
When you compare the cost of building a warehouse and that of cross docking terminal, you will find that the terminal is far much less expensive. With the transport vehicles able to carry full loads, the cost of transporting goods is so much reduced. The process makes it easier to screen products. The consumers can get what they want much faster as compared to the other process. There are some items that fit into category more than others. Some of them are the high-quality items that are never subjected to quality inspection.
For the process to be effective, it will be determined by some factors. Some of the factors that determined the effectiveness include handling methods used. The complexity of the load is also a major determinant.
The best thing the process is flexible, efficient and can accommodate unpredictable customer behavior and their demands. Every company strives to make sure that their customers are satisfied even when the demands keep on shifting. The process will help various companies leave their customers satisfied with their services.