The United States spent $1.63 trillion on logistics services in 2020 alone.
How much did your company spend on transportation, warehouse, and logistics needs for the year?
You aren’t alone if this accounts for a steep level of your quarterly budget as transport and warehousing services can run wild. But making the right decisions on how to move your products means knowing your options. We are here to help show how transload warehouse or crossdock services may fit the bill.
Continue reading below for the difference between these services and how to select a solution.
Definition of Crossdock Services
Knowing the difference between cross docking and a transload warehouse means having easy definitions at your fingertips.
Crossdocking is when products are unloaded from one truck or container directly to the next truck to complete shipment. The products are already organized on pallets which move from one delivery transport to the next.
The critical thing to keep in mind for crossdock services is the quick movement of products. Pallets are in a warehouse for 24 hours or less. This turnaround time means your products arrive sooner at their final spot.
You can expect safe services when using a crossdock strategy. This helps cut the worry of cargo theft with such quick turnarounds. But cross docking could mean delays in the event of an unplanned accident.
Definition of Transload Warehouse Services
Cross docking may appear like the most efficient method with a quick timeline. But your products may fare better with a transload warehouse.
A transload warehouse is when inbound freight is unloaded, organized at a warehouse, and then sent for outbound delivery. The process is not as immediate as cross docking but as effective.
A transload warehouse service often incorporates different transport methods than trucks. Usually, major product containers arrive at warehouses from international cargo boats.
A good example of transloading service is when a company sends products via ships. The large shipments are moved to a warehouse near the dock and organized onto pallets. The pallets are then collected by trucks for the last mile delivery.
Benefits Behind Transloading Services
Transportation services decrease by having products move on trucks, railways, and ships. A singular service, such as trucks, has higher costs due to fuel. By separating into more cost-effective methods, you reap the financial benefits.
You would also gain an advantage from having one truck do the final delivery service of all products. You don’t need to worry about several trucks picking up one or two items using a transload warehouse.
Selecting the Best Solution for Needs
Cross docking and transload warehouse services both offer advantages for your logistics needs. Each is a great option to deliver your products. You can now choose whichever fits your needs best while decreasing your major logistics spend.
Build out your ideal logistics plan, and get a quote for our warehousing services to implement the perfect solution.