Cross-docking is a shipment procedure where products, finished or raw, are distributed from any manufacturer or supplier to the consumers directly. This movement involves minimal to no time for storing.
Nowadays, the companies that provide a solution for logistics use this procedure quite regularly.
In this approach, there is no involvement in material handling, when the product is being delivered to the consumer. For logistics, to have cross-docking means having an excellent tool.
Over the years Cross Docking Services has progressed enormously and is being brought into use very effectively. Cross-docking is the key link between a business and its competition.
In this article, some of the top reasons to use cross-docking services are being assessed.
1. Requirement of Less Space – Since cross-docking involves minimum or no storage time, the space required for this activity is rather less. This in a way brings down many expenses related to logistics. Cross-docking facilities are taking the place of traditional warehouses. These facilities need less space and are simple to build.
2. Better Management of Inventory – Since cross-docking lowers the quantity of supply to be stored it leads to improved inventory management. Thus, it also lowers the occurrences of overstocking. As the inventory management gets improved and less storing is required, the expenses also come down.
3. Minimum Handling of Materials – There is also a considerable decline in the handling of materials. In cross-docking material handling is restricted to loading, unloading, staging, and nominal picking like activities. When packages are not handled repeatedly, they remain safe from damages.
It gives less opportunity for the customers to complain regarding items getting damaged. It has been seen that logistics companies for delivering packages, to bring down the shipping costs, often takes the help of numerous distribution centers. Cross-docking minimizes the possibilities of product damage by minimizing the number of touches.
4. Expenses of Transportation Decreased –
Cross-docking uses optimized routes for which there is very little wastage of miles. Optimization on roads for delivery lowers the use of fuel. The products meant for one destination are transported collectively. For every trip, the load to be transported is kept full. Thus, the cost of transportation is also low.
5. Increases Satisfaction of Customers – The approaches of cross-docking can be beneficial in ensuring that the customers do use the same services more than once. Cost-efficient services can be provided to customers as it turns the whole process of shipping along with storage to be quite straightforward. It is also a way to speed up the process of shipping besides reducing the operating costs.
When there are quick turnarounds and genuine savings on expenses, the customers can always receive the finest and satisfactory services. This is the best possible way to keep hold of existing customers and attract some additional.
6. Improves Quality of Products – Cross-docking further facilitates to manage the quality of products and deliver better products to a customer. The concerned staff is responsible to check for the damages that happen during the transportation, while the packages are unloaded and staged.
This is to ensure that a customer doesn’t receive any broken or scratched product. Such a step helps to increase the overall satisfaction of customers.
7. Cutback of Delivery Times – This logistics procedure even helps in-time delivery to customers. Usually, cross-docking services exist in those areas from where the final destination for delivery is somewhat close.
Due to this, the surplus traveling time is abolished which enables reducing delivery times. The process of cross-docking very effectively decreases delays in delivery.
8. Minimal Requirement of Labor – Since cross-docking involves minimum handling of materials, the requirement of labor is also reduced. Having an excess workforce means shelling out a good part of revenue in paying wages.
So, employing labor as required certainly saves expenses. The saved revenue can be utilized in various marketing, advertising or other business-related advantages.
9. Being the Part of Competition – The logistics market is getting competitive day by day. To survive as well as flourish in these hostile situations, it is very vital to attend to the needs of customers.
To see what your customers remain ever-satisfied, it is essential to implement the strategy of cross-docking. The capability to carry out the services of cross-docking does facilitate a company to confidently stand apart among the competitors. A competitive edge is gained by integrating this strategy among the list of services provided.
The reasons discussed above confirm one important thing i.e. a business gets more than expected new prospects to perform successfully by bringing into use cross-docking. It enables us to boost the efficiency of a business, serve the customers in a better way and most importantly make savings.
Most producers or manufacturers sustain heavy costs owing to the shipping process. That is why the call for selecting the perfect kind of logistics professionals for shipping is the utmost requirement.
Cross-docking can be suitable for various kinds of products. Perishable products are well suited for this approach. Groceries that have continuous demand, packaged products, products that are a part of promotional lunch and some high-quality products are also fine for cross-docking.
It is said to be an extremely successful method to lessen the dependency on warehousing.