One of the practices that have enabled companies that ship different commodities save time and also cash during the period of transportation is cross docking. The cross docking practice helps the companies or the shippers to save time as they receive their goods as soon as they are shipped in without their goods being stored in warehouses. The cross docking practice thus primarily serves to save the shipper both time and 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. Apart from saving on the handling and operating costs, one also saves on warehousing costs by avoiding storing their products in a warehouse and also saves on storage of inventory. 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. For cross docking to be successful, one also needs to ensure that their partners have a functional transport fleet to carry the loads. 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. Another type of a company which should consider cross-docking is a company that ships high-quality products which require no inspection when one is receiving them. Companies which are shipping products which are ready for the local market which are characterized by the presence of pre-tags such as bar codes and RFID should also save time and money through cross docking by not storing the products in the 3PL warehouses. If your company ships products for a launch or to be used in promotions, or in the case of products which have constant demand in the market, one can ship them and employ cross-docking strategy. 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.
The level of success of cross-docking depends on the establishment of efficient communication between the chain from the manufacturer to the client. 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.