Did you know in 2021 global shipping carriers recorded $150 billion USD in profits?
Considering labor shortages and the supply chain crisis faced during of Covid-19, it’s a surprising fact.
Well, in part this large number has to do with a steep hike in freight fees. Fees went from $2,000 per container in 2019 to $15,000 in late 2021.
With the rise in shipping costs, it may mean it’s time to look at business expenses and where you can adjust. A great place to start is taking stock of your supply chain model.
Cross docking could be your solution.
What is Cross Docking?
Cross docking is a lean supply chain model that seeks to optimize shipping logistics. Freight leaves production and keeps moving until it reaches retailers/customers.
If timed right, long-term warehouse storage becomes unnecessary. This could mean lowering your cost of doing business.
Benefits of Cross Docking
It’s a delicate logistical balance that relies on highly organized and motivated workers. It’s these workers’ job to receive, sort, and ship goods as quickly as possible. While global business uses this model, cross docking is effective for national or local freight distribution as well.
Cross docking’s popularity has grown in the last three years. Cross docking’s is set to grow in the coming year
COVID-19’s Effect on Cross-Docking
Before COVID-19, retailers used short-term storage options for their products.
But the pandemic disrupted the entire supply chain. Those responsible transportation, distribution, and fulfillment were no longer available as before.
Because of social distancing, the demand for E-commerce exploded alongside the need for quick lead time. Some benefits of cross docking services are removing high-risk Covid exposure for workers and also allows the fast delivery of goods.
Although, there have been challenges along the way because of Covid.
Automation in Cross Docking
As previously stated, successful and efficient cross docking his due to organized and motivated workers.
If everyone is not on the same time schedule, this could spell trouble like gaps in fulfillment or too much freight waiting at a cross-docking facility with no place to go.
At the start, labor shortages proved to be a challenge in the industry.
Automation, however, has been introduced into cross docking services and has further increased efficiency specifically for sorting purposes.
Besides cross docking workers, there are other people who are a part of the logistics team. Having qualified and reliable truck drivers is an integral piece of cross docking; after all, they’re responsible for keeping the supply chain moving and reducing the amount of time goods are stationary.
Trucking is among the fastest ways to get goods from one place to another.
How Genex Can Help
Covid has challenged many businesses across the board in their logistical operations. At Genex, we have adapted with the times and continue to provide cross docking and trucking services at the local and national level.
Consider using our services!