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. The companies will be comfortable using it as it is both time and money saving process. Many companies may decide to be using the method as it has several advantages. her are some of the main advantages that will make many companies want to use the process.
First, the process reduces handling costs and operating 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. Since the goods are not being stored in the warehouses, it goes without saying that there will be no need for store inventory. That means since the warehouses are not in use, the cost definitely goes down. There is a lot of company cost that goes the management of warehouses. Now that goes can be shipped without having to pass through the storage houses, that will reduce the operational costs substantially.
Another advantage is that the process reduces fuel costs from consolidating shipments. Another advantage is that the goods will be leaving the manufacturer to the distributor and the customer faster. Perishable goods will be transported much faster without sophisticated transportation. The perishable goods will not need to be stored in the warehouses. That will reduce the number of electricians working in these warehouses which is a cost reduction to the companies.
It is also vital to note that the cost of constructing and managing warehouses is far much lower as compared to cross docking destinations. At the same time transportation of goods is much less expensive as you will be able to transport full loads. Screening of products with this process is much easier. With cross docking services, consumers get what they want much faster. There are some items that fit into category more than others. Those high-quality items that do not have to pass through quality inspection are the best for this process.
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 best thing the process is flexible, efficient and can accommodate unpredictable customer behavior and their demands. The customers’ needs and demands keeps changing but all the companies look for different ways of making sure they leave their customers happy. The service will go a long way in helping companies achieve that goal.