If your business relies on shipping, you know that efficiency is paramount. Time is money, and the faster you can move products from A to B, the happier your customers and the more successful your business.
This is why so many companies across manufacturing industries are turning to cross docking logistics. The practice has many advantages, including streamlined supply chains and faster shipping times.
If you want to learn more about the benefits of cross docking, keep reading. The information below will lay out what the practice entails and some insights into why it may be perfect for your business.
What Is Cross Docking?
Cross docking is the practice of transferring inbound freight to an outgoing shipment without storing it. It functions very much like an airport hub. It’s a space where vessels exchange cargo from different places and send them back out to distinct destinations.
This happens in one of three different methods. The simplest and most direct one is “continuous cross docking.”
As the name implies, this is where materials move through the central site without any other activity. There may be occasional delays based on equipment availability or truck scheduling.
Cross docking also can involve consolidating freight. This entails merging several smaller shipments into one larger one. During this type of cross docking, a facility might hold cargo for a limited time until all requisite shipments have arrived.
A final method of cross docking involves the opposite: deconsolidation. This is where the facility breaks down a larger shipment into several smaller ones for transport.
Cross Docking Benefits
One of the biggest advantages of cross docking logistics is the streamlining of your supply chain. It helps avoid the need for warehousing and storage facilities. This also means you avoid associated costs, including rental of the facilities and management of them.
It also means less overall facilities space. Since you are storing very little of the cargo, and for only very short durations, cross docks have a minimal footprint.
It also means your business can focus on other goals besides storage. You can put resources that would otherwise go to warehousing into making better products for your customers.
Cross docking also offers potential savings in transportation costs. It allows you to optimize routes, which translates to reduced fuel costs and vehicle maintenance.
Cross docking yields more efficient shipping times. This means you can better match your shipping times with client demand. It in turn means happier customers and increased opportunity for you to ship more products.
Doing cross docking well requires expertise, a robust logistics system, and meticulous supply chain management. This is why many businesses outsource it. Doing so allows you to get all of the benefits of cross docking without having to train staff or retrofit a warehouse into a cross docking facility.
Find Cross Docking Logistics Near You
Now that you understand cross docking logistics and the potential benefits it affords, you can decide if it is right for your business. Find a reputable company that can meet your shipping and budget demands.
Genex offers clients supply chain management and storage services for short or extended uses. We can cross dock and store your products for as long as you need. Reach out to us today for a free quote or consultation.