Cross docking is one of the practices that have enabled different companies to transport their product using the shortest time possible. The main reason why cross docking helps the shippers to save cash and time is the fact that they do not have to store their products in a warehouse and thus one receives their goods as soon as they are shipped in. The cross-docking is properly practiced it serves to save the companies not only time but also cash. One reaps some benefits when practicing cross-docking as the practice has proved to be efficient in reducing the handling cost as well as the operating costs. By not storing your goods in a warehouse one also saves warehousing costs as well as the storage of inventory thus reducing the cost of shipping products significantly. When practicing cross docking when a company is shipping products, the chain of distribution is streamlined making sure that clients get their orders in time while a company also saves on fuel costs as their shipments are consolidated into one full load.
One of the factors that a company needs to keep an eye on when they are interested in cross-docking is checking whether their potential partners have enough storage facilities. One also needs to check if their partners have adequate transport fleet to transport all the products in time. Your potential partners also need to have an operational IT system to track the transportation of the loads.
Some of the products being shipped need the shippers to employ cross-docking to avoid losses. One instance, when a shipper needs cross-docking, is when they are dealing with perishable goods which need to be transported using the least time possible to avoid registering losses. Companies which are shipping high-quality products which do not require any further inspection are also suited by cross-docking as they do not experience any delays during shipment. Another kind of products which are suited by cross docking are products which are shipped ready for sale such as items which have pre-tags including RFID and bar codes. If the products that have been shipped are being used for promotional purposes or during a launch, or when the products have a constant demand or low variance in demand, they are also suited when transported through cross docking practice. If a company ships products which are pre-packed or pre-packaged as orders from their clients, they are better placed to employing cross-docking.
For cross-docking to be successful there is the need to have constant communication between the manufacturers and also the distributors and suppliers. Such necessitates the need for logistic software integration which aids the suppliers, vendors, and shippers as they can track inventory that is in transit.