Do you own a business with high-volume shipments and transportation requirements? Are you looking for ways to reduce costs and improve efficiency? We understand the challenges of the business and how important it is to streamline the process.
You want to make sure you profit and keep everything as organized as possible. That is why a cross docking facility exists. Continue reading to learn more about this center.
What Is Cross Docking Meaning?
Cross-docking is the process of unloading freight from an incoming cargo and loading it into an outgoing shipment. It requires little or no storage in between.
When businesses use the cross-docking technique, a distribution center serves as a sorting facility. They don’t use a storage or warehousing facility.
What Do a Cross Docking Facility Do
In a cross docking facility, the primary purpose is to facilitate the movement of products to the next step of the shipping process. With limited storage space, everything must be arranged according to incoming and outgoing shipments.
Inbound goods are sorted and loaded straight into outgoing trucks or shipping containers. They are processed and dispatched within 24 hours after they arrive at a docking port.
What Do Cross Docking Facilities Need?
Cross docking facilities need a high degree of automation, rigorous management, and visibility. This is to provide assurance for the suppliers to end consumers. Most companies depend on the resources that a well-rounded 3PL can provide.
There are three main techniques of cross-docking. These techniques are:
Continuous Cross Docking
Continuous cross docking is the first and easiest technique. This is the most straightforward application. Continuous cross-docking involves the movement of goods and materials via a central location.
This goes straight from incoming to outgoing shipments. There may be brief wait periods if the trucks arrive at the site at different times.
Another technique is to enter into consolidation agreements. This combines multiple smaller goods or freight loads at a cross docking facility into a single bigger cargo. Certain things kept at the site’s storage can combine with incoming goods to make full truckload shipments.
The third technique is deconsolidation, which is the inverse of consolidation. Rather than merging many smaller loads into a single big load, the deconsolidation technique divides a large load into numerous smaller ones for simpler delivery. This approach is employed for direct-to-consumer shipments.
Who Gains the Most From Cross-Docking?
Most business benefits from a system where shipments are handled promptly. The holding periods are at a minimum. Some sectors are more likely to gain the most advantages from cross-docking in their supply chains.
Here are industries that benefit the most:
- Consumer goods manufacturers
- Automobile parts manufacturers
- Chemical businesses
- Food and beverage industries
Cross-docking is a very cost-effective solution for businesses with high-volume shipments and transportation requirements. Switching away from the conventional distribution center model may also be cost-effective.
This is especially true for companies seeking to accelerate inventory rotations and minimize material handling. It’s vital to find a trustworthy cross dock warehouse and cross dock terminal to get the job done.
Where Can You Get Access to a Cross Docking Facility?
Now that you know the importance of a cross docking facility, you must be curious about finding one. You can locate one with a google search to find “cross dock warehouse near me,” but you also want reliability. It’s best to compare and ask the right questions before choosing a facility.
Still, confused about the whole cross docking process? Contact us today to learn more about cross docking services.