Cross-docking services can be said as the ability to receive products and ship immediately without having to store in a warehouse. 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. her are some of the main advantages that will make many companies want to use the process.
The first thing that many companies have noted is a reduction in operational costs as well as handling costs. 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 automatically reduces the need for store inventory. As the goods are leaving the manufacturer to their destination; it reduces the need for store 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 that the goods will be leaving the manufacturer to the distributor and the customer 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 can be shipped without passing through the warehouses. When perishable goods are not stored in the warehouses, the need for electricians will go down and that cost-effective to 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. There is a much faster movement of goods making it for customers to get what they want much faster. There are some products that are more suited for this kind of transportation than others. Some of these most suited are the high-quality items that require no quality inspection.
The effectiveness of the process depends on 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 good thing is that the method is flexible and efficient enough to meet the customers” needs and changing demand. The customers’ needs and demands keeps changing but all the companies look for different ways of making sure they leave their customers happy. The increasing use of the process will move companies toward achieving that goal.