Cross docking has gained popularity among the shippers as they have served to save the shippers not only cash but also the time that they would have used to transport their loads. 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. By practicing cross docking one enjoys a number of benefits such as the reduction of the operating cost as well as the handling cost of shipping a given consignment. One also saves on storage of inventory and also the warehousing costs as the goods are not stored in the warehouses. The company also saves on the fuel costs as the LTL shipments are consolidated to full loads and also enjoys a streamlined chain and thus the goods reach the distributor and thus the customer in time.
When one is interested in initiating the cross docking services they need to ensure that their potential clients have the storage capacities. It is also necessary for the company to check if their potential partners possess a transport fleet to ensure products are transported in good time always. Your partners also need to have a fully functional IT system to aid communication.
There are several products that are better placed to be transported through cross-docking. 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. Another kind of products that will need the cross docking services are those of high-quality which do not need quality inspection when they are being received. 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. Items that have been shipped for a launch or for promotional purposes also qualify for cross-docking as well as staple products that have proved to have constant or low demand variance over the time. Companies shipping pre-packed and pre-packaged products can also rely on cross-docking to reduce the cost.
For cross-docking to be successful there is the need to have constant communication between the manufacturers and also the distributors and suppliers. To make sure that there is efficient communication between the partners involved, there is the need to have software in place that enables them to trace their inventory in transit.