Are you familiar with cross-docking? You're not the only one who hasn't heard of it before; we understand. In the world of eCommerce logistics, this is often referred to as the most underused hack. You may not realize it yet, but it can change the way you do business. Hence, let's go over everything you need to know about cross-docking services, why you should consider it, and how they can help you. So if it is something that catches your interest, keep on reading this entire blog. Let’s start:
What are Cross Docking Services?
By eliminating the storage link in the supply chain, cross-docking is a logistics procedure that reduces warehouse waste. The receiving docks are where incoming goods are sorted, processed, and screened before they are quickly transported by outbound transport to retailers or consumers. You might now understand what cross-docking services mean. However, to understand it even better, let's look at how it works.
How do Cross Docking Services work?
Cross-docking logistics work as follows:
At the distribution docking terminal, the inbound products arrive first by truck or trailer from the manufacturing plants.
Following this, the products are put on a "cross-dock" terminal.
In order to determine their final destinations, products are unloaded, sorted, and screened at one end of the docking terminal. It involves three steps: Planning, Scheduling, and Coordination.
Therefore this is what cross-docking services are and how it works. Now the question might strike your mind that what are the benefits of cross-docking services. Let’s see:
Benefits of Cross Docking Services
The following are a few key advantages of cross-docking, which will help you better understand this process.
Offers better control- Cross-dock facilities enable companies to direct product levels more precisely. By doing so, they ensure that they are getting products that meet the demands of their customers.
Ensure just-in-time manufacturing- With this logistics strategy, just-in-time manufacturing was introduced, delivering only those products that are needed. Thus, there will not be any extra inventory.
Reduces warehouse cost- With cross-docking, fewer products, equipment, and machines are needed in the warehouse. Therefore, costs can be reduced.
Reduce labor cost- With the introduction of cross-docking, labor needs for handling storage and warehousing have decreased, resulting in lower labor costs.
Cross-docking has many other benefits besides those listed above. Some of them are:
Material handling damages are reduced,
An improvement in service quality,
A reduction in transportation costs,
Overall fixed costs are reduced, and
The process of getting products to customers is faster.
Therefore this is all about cross-docking services. Now you might be thinking what is the right time to use cross-docking? Let’s see:
When to use Cross Docking services?
Automobiles, food and beverage, consumer goods, and chemicals are the industries most suited for cross-docking. Among the companies that use this transformative strategy effectively are Walmart, Nestle, McDonald's, and Unilever.
Cross-docking terminals allow companies to bypass storage and deliver directly to customers. As a result, the time to deliver goods is shortened, which allows more shelf-life for the goods.
As a result, companies that deliver time-sensitive items such as perishable foods or groceries can also benefit from a cross-docking strategy. Cross-docking procedures can also be used by eCommerce companies during flash sales, such as Black Friday and Cyber Monday. In such cases, this would be the most cost-effective and effective way to deliver products to the customer.
Therefore this is when you should use cross-docking services. So are you looking for the best third-party logistics in Las Vegas? At PowerHouse LV, we can help you. Let’s see how we can help:
How PowerHouse LV can help you with Cross Docking?
Transloading and cross-docking operations and transactions are simplified by our dynamic route optimization software. Through route planning, it enables goods from multiple warehouses and vendors to be transported as efficiently and quickly as possible to one distribution center. We being the leading public warehouse company are here to fulfill your all logistics needs. Get in touch!