Do you have shipments to distribute? If you’re in charge of distribution for your company, you have a few decisions to make. How can you decide what’s best for your business and your customers?
One of these decisions is the choice between cross docking vs warehousing. These are different methods to get your freight from point A to point B.
Not sure which to choose? We’re here to explain them both so that you can make an informed decision. Keep reading to learn more.
What Is Cross Docking?
Cross docking is when a service takes your shipments from inbound transportation to outbound transportation with little to no downtime in between.
While we’re making the distinction between cross docking and warehousing here, keep in mind that cross docking services also allow storage. Cross docking facilities often have temperature control and they have the ability to move shipments from one mode of transport to another.
What Is Warehousing?
Warehousing is a more traditional method of product storage and shipment preparation. With warehousing, you store all of your products in one place until you’re ready to ship them out.
For online businesses, items are stored at the warehouse until someone is ready to order them. For traditional retail, warehouse storage tends to be shorter-term as a kind of “middle man” between suppliers and the retail location.
Which Is Better?
Both cross docking and warehousing have their place in supply chain management, but some people may be better off with cross docking.
Cross docking is often more efficient than warehousing. Because there’s no long-term storage, you’re able to get your products to your customers without a lag in the middle.
Cutting out the long-term storage of warehousing also allows you to cut out that added storage cost.
Because cross docking services can store and ship, it also means that you’ll be providing faster shipping times. You don’t have to wait for a delivery driver to make their way to the warehouse, find and load products, and then make their way to the destination.
Cross docking also means that your products aren’t going through as many hands, so to speak. Because you’re only working with one cross docking business, you have fewer relationships to manage and there are fewer opportunities for error.
Overall, while there’s nothing wrong with traditional warehousing and it’s still valuable, you’ll save time and money if you use a cross docking service.
Cross Docking or Warehousing: Which Is Right for You?
When it comes to cross docking vs warehousing, it’s easy to see that cross docking has enough benefits to make it a clear winner.
Between increased efficiency, lower costs, and fewer business relationships to manage, cross docking is a great way to streamline your business supply chain management.
Make the switch and see the difference in no time.
Are you looking for a great cross docking service provider? We want to work with you. Contact us to get a free quote in minutes so we can get you started.