For retailers, cross docking services can have huge benefits. Cross docking allows products to be sorted and shopped immediately, with little to no downtime. In addition, inventory can be quickly unloaded and loaded, ready for its destination.
It’s simple in theory, but it can be hard to execute. Therefore, you need to consider certain things when deciding who to hire for your cross docking experience.
Here are 5 factors to consider when choosing cross docking services.
1. Cross Docking Costs
One of the most important factors will be the cost of cross docking services. Of course, it’s not the only factor to consider, but for many, it’s important.
Look for a cross docking provider that can give you a good quote and answer any questions you may have about their services.
2. Suitable Products
You should consider if your goods are suitable for cross docking. Perishable items are good for cross docking since they require an immediate shipment. Staple goods such as food items are also good candidates for cross docking since these items will be in steady demand.
Some items also require storage at specific temperatures. Cross docking in a temperature-controlled warehouse can ensure that these items are stored appropriately.
3. Efficiency
You need to determine if cross docking will be efficient for your organization. Cross docking items require efficient and streamlined operations. For example, goods need to be turned over quickly.
This is even more important if your goods are perishable. Lost time could mean lost profits.
4. Choosing the Cross Docking Services Needed
There are several cross docking service options available. Your organization may need one or more of these.
Distributor cross docking involves inbound goods consolidated into one pallet, which is then delivered to the customer once all goods are received. Transportation cross docking involves combining multiple shipments from LTL or less-than-truckload carriers to save costs.
Retail cross docking involves receiving products from multiple vendors, sorting them, then sending them out to multiple retail stores. Retail cross docking is what allows Walmart to distribute its goods to every store.
These are just a few of the different types of cross docking.
5. Make Sure You Have the Volume
Cross docking is effective for companies that have a high volume of goods. If your company is consistently shipping a large number of goods, then cross docking is a good solution.
If you can’t send full trucks of inbound goods to the cross dock, then it may not be a good solution. Again, it’s best to consult a logistics provider who can help you determine what cross docking or warehousing solution is right for you.
You Don’t Have to Look Very Far When Choosing Cross Docking Services
Now you know the top 5 factors to consider when choosing cross docking services. Before you spend hours chasing down a logistics solution provider and comparing cross docking company options, contact Genex. We offer dry and refrigerated storage, cross docking, packaging, floor loading and unloading, and more.
Get a quote today.