How Will Cross Docking Logistic Service Benefit Me?

Before getting to why you should use it, let’s have some history of cross docking. It started from the year 1930. This method was then adopted by the military of the United States in the year 1950. Then, in the year 1980, Wal-Mart adopted this approach.

Cross docking is a great way to deliver the product in a very short amount of time without using a lot of man power. It is simply the transfer of the manufactured product from the factory or the production house directly to the buyers. Apart from reducing the use of man power, it helps to reduce the space and time required to hold the product till it reaches its customers.

The product mostly involved in cross docking is either already sold which needs to be delivered to its rightful owner or an order by a company that is to be sent from a warehouse.

Cross Docking enables you to optimize the supply chain industry. Things move faster and more effectively. The Cross Docking operation works 24/7, so, the customers get their products mostly on time.

Why Cross Docking Is Good For You?

Here’re some of the most impressive reasons you should be doing cross docking.

  • It Provides Flexibility

It is great if you have a small start-up business. It does not require any warehouse. Hence, you can start just right off. The most important tip is to get as much clients as you can get. This makes the business run better and with a lot of profit if your customer base is loyal enough.

  • It Provides Good Quality Work

Cross docking does not require any storage facility; hence, the work is mostly done quite efficiently. The logistic experts take care of the business that goes on in the warehouse itself. Plus, the staff is equipped and have all the required information.

  • Reduction in the Cost

When the business is run by several companies at a time, the cost is minimal as it tends to distribute the overall cost. For example, when you are going to take some space from the warehouse, you only get to pay the space you took and not of the whole warehouse.

Plus, when there are multiple companies running, there is less labor cost; money is saved this way as well.

If there is any special delivery that requires a certain tool or any kind of equipment, the cost is usually taken up by the customer or your client, hence, you do not need to worry about it either.

Types of Docking

  • Manufacturing Cross Docking:

In this type, the raw materials which are used in manufacturing process are received and then moved to various plants directly.

  • Distributor Cross Docking

This involves purchasing different products from a variety of different vendors and then sending it to the customers.

  • Transportation Cross Docking

This is the most important type as it combines shipments from various carriers to save costs.

In short, cross docking is the best solution for the supply chain. Business to do things faster, save time and money.

We are Matrix Transpiration an industry leader in freight transport services! We have been in business since 2009, focusing on customer service. Our main headquarters is located in Brighton, Mi, but we cover Illinois, Indiana, Wisconsin, Kentucky and Ohio. We offer other services such as freight management including shipping, warehousing and cross docking services. Call us today toll free 888.896.2405 or visit our website www.matrixtransportation.com

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

LTL vs FTL Shipping

Whеn you’re uѕing аn Atlаntа delivery company tо move large еnоugh ѕhiрmеntѕ of frеight thаt уоu’vе moved uр from uѕing dеlivеrу vаnѕ tо using full size truсkѕ, уоu’rе gоing tо ѕtаrt bеing presented with nеw options fоr service frоm thаt company. The larger уоur ѕhiрmеntѕ grоw, the mоrе diffiсult thiѕ decision саn bе tо mаkе, ѕо it’s important to undеrѕtаnd thе key differences between the twо рrimаrу fоrmѕ оf truсking, which аrе LTL аnd FTL shipping.

LTL аnd FTL stand for lеѕѕ than truсk load аnd full truсk lоаd respectively. These аrе the twо main wауѕ that trucking соmраniеѕ use thеir trucks. Thе essence оf it iѕ thаt an LTL truсk will mоvе саrgо which belongs to ѕеvеrаl diffеrеnt сliеntѕ. An FTL truсk will instead оnlу mоvе саrgо which bеlоngѕ tо оnе сuѕtоmеr.

Whеn уоu’rе ѕhiррing уоur cargo оn аn LTL truсklоаd, thе entire truсk iѕ going tо bе full, but you will only be using аѕ much оf the truсk аѕ you require for уоur gооdѕ. The оthеr аvаilаblе space on thе vеhiсlе will bе givеn tо оthеr clients оf thе соuriеr company thаt need to mоvе thеir gооdѕ in thе same gеnеrаl dirесtiоn. This means thаt most LTL vehicles run full, аnd it also means thаt mаnу оf the costs оf thаt ѕhiрmеnt аrе thеn ѕhаrеd bеtwееn a fеw diffеrеnt parties.

Thаt соѕt saving fеаturе iѕ thе primary reason whу many people dесidе to uѕе LTL shipping. Anуthing which iѕ over 100lbѕ аррrоасhеѕ bеing too hеаvу fоr shipping in a regular courier vеhiсlе, аnd nееdѕ tо be truсkеd instead. Hоwеvеr, until уоu аррrоасh 10,000lbѕ оf cargo, it iѕ gеnеrаllу imрrасtiсаl tо uѕе FTL ѕhiррing. Evеrуthing in bеtwееn these weights gеnеrаllу ships LTL, whiсh is whу thiѕ ѕhiррing орtiоn is ѕо popular.

There iѕ оnlу really one dоwnѕidе to LTL shipping, and thаt iѕ thе timе thаt it might take уоur ѕhiрmеnt tо bе delivered. This iѕ оnlу going to be a соnсеrn if you’re starting tо аррrоасh the upper limit оf LTL shipping wеightѕ; оthеrwiѕе thе price differential for mоving tо FTL is too grеаt. Hоwеvеr, if you’re nеаr the borderline оf the wеight сlаѕѕеѕ, ѕоmе сliеntѕ рrеfеr tо mоvе to FTL because thеir ѕhiрmеntѕ will be delivered quicker. Thаt is because during аn LTL ѕhiрmеnt the truсk may bе delayed ѕеvеrаl times during the dеlivеrу whilе thе оrdеrѕ bеlоnging tо оthеr сliеntѕ аrе being dropped off. Thiѕ will dереnd оf соurѕе оn where уоur deliveries are ѕсhеdulеd аmidѕt the оthеr clients.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at http://www.matrixtransportation.com/ltl-truckload.php To contact one of our trucking experts call toll free 888.896.2405 today.

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

Trucking Industry Debates How Advanced Tech Can Reduce Crashes

Truck manufacturers, regulators and technology firms are increasingly looking to technology like advanced driver-assistance systems to improve truck safety.

But the viewpoint isn’t universal.

Proponents believe that widespread use of the technology will help slow the increase in traffic deaths, but skeptics raise concerns about regulation, training and data privacy.

The systems, referred to in the trucking industry as ADAS, include functions such as collision avoidance, lane departure warnings and speed sign recognition.

On Monday, the National Transportation Safety Board and the nonprofit National Safety Council convened a panel of more than a dozen regulators, manufacturers, fleet owners, technology providers and insurance experts. Meeting in Schaumburg, Ill., they brainstormed how to implement ADAS in more heavy-duty vehicles.

“There’s proven technology available today — we don’t need to wait for a fully automated vehicle to rescue us,” said co-moderator Alex Epstein, a senior director at the National Safety Council. “There’s nothing that stops any of us from advancing this topic.”

Motor vehicle collisions are the leading cause of preventable death in the country, and more and more large trucks and buses are involved in fatal crashes, according to the government.

The number of heavy-duty trucks involved in fatal crashes in 2015 rose 8 percent from the prior year to 4,050, according to the Federal Motor Carrier Safety Administration.

ADAS technology is designed to reduce collisions by targeting easily avoidable mistakes.

Adoption, however, has suffered because commercial carriers — especially those with small fleets — often don’t know exactly what ADAS entails, the panelists said.

Many truckers incorrectly associate anti-collision options with much-ballyhooed developments in driverless systems.

“We have to explain what the technology is, but also what the technology is not,” said Uri Tamir, director of strategic initiatives at collision-avoidance system provider Mobileye. “It’s not a surveillance camera and it’s not intended to replace the driver.”

ADAS technologies vary from developer to developer, which adds to the confusion and can trip up to drivers assigned to different trucks day to day. Also, the rapid pace of innovation means that the pool of options is always growing. Some dashboards now feature dozens of distracting alerts and warnings.

“If we don’t see some standardization in terms of what this particular buzzer means or what that seat vibration means, drivers will get confused and it will affect customer adoption,” said Robert Kreeb, a division chief at the National Highway Traffic Safety Administration.

Fleet maintenance, customization and driver turnover is another issue, panelists said.

A built-in ADAS system might be compromised by an aftermarket snowshovel added to the front of a truck, blocking sensors. Retrofitting older vehicles with the technology is encouraged, but the systems need occasional care.

“If that technology isn’t being managed or maintained properly, or if the driver isn’t trained, it raises exposure to risk,” said Bob Crescenzo, vice president of Lancer Insurance Co. “And drivers often moving back and forth between vehicles present challenges.”

So too does training those drivers, according to Deborah A.P. Hersman, chief executive of the National Safety Council.

“We have to make sure that drivers use that technology appropriately, that they’re not misusing it or confused by it,” Hersman said. “Technology will not be an immediate panacea for highway fatalities — all the technology in the world won’t make a difference if drivers don’t know how to use it or turn it off.”

But changing trucker demographics and vehicle design could help increase ADAS adoption, panelists said. Semi trucks don’t require as much manual operation as they once did. Younger drivers are joining fleets, as are more women.

“The pool is widening,” said Adam Gregori, chief executive of Sentinel Transportation, a private trucking company joint venture between DuPont and Phillips 66. “Their flexibility to accept new technology is what we need in the future.”

As the ADAS market grows for commercial truckers, the industry will face a choice: whether it will voluntarily adopt the technology or wait for manufacturers to make it a standard feature in vehicles.

Volvo Trucks North America, for example, just unveiled a complete redesign of its VNL long-haul truck. It has a camera and radar-based system that combines forward collision warnings and active braking and can spot and react to stationary vehicles. The system features an industry-first heads up windshield display if a driver approaches too closely to an object in front. If the driver does not hit the brakes, the system automatically kicks in to slow the rig.

Another option would be for regulators to mandate the technology be part of truck design, the panelists said.

Some suggested that the government offer incentives for carriers to adopt the technology, such as a truck replacement program akin to the 2009 Cash for Clunkers trade-in tactic used to take gas-guzzling passenger vehicles off the road.

Others worried about how to handle the vast troves of digital data generated by ADAS systems. Several panelists said they would share information about their fleets as long as it was left anonymous.

The level of industry engagement is promising, and will only increase, said Michael Cammisa, vice president of safety policy, connectivity and technology at the American Trucking Associations trade group.

“It does build up on itself,” he said. “As the big fleets purchase more, the price comes down, the technology gets better and the smaller fleets see the benefit.”

Original Source: https://www.trucks.com/2017/07/25/trucking-industry-debates-advanced-tech/

Original Author: Tiffany Hsu

Original Date: July 25 2017

Posted in Uncategorized | Leave a comment

Lift in demand fuels hopes trucking has turned the corner

Improving freight demand could signal brighter days ahead for transportation companies — if they can persuade retailers and manufacturers to pay more for shipping.

Trucking and logistics firms should give their outlooks for the rest of the year as they begin to report earnings next week, with investors watching for signs of a rebound from a two-year slump in freight rates.

J.B. Hunt Transport Services Inc., one of the largest U.S. freight carriers, is expected to announce its second-quarter earnings Monday. C.H. Robinson Worldwide Inc., the biggest freight brokerage, reports Thursday. Several large trucking companies report the following week.

The results come as bountiful produce harvests and increased shipping demand tied to Amazon.com Inc.’s Prime Day sales promotion have helped boost rates on the spot truckload market, where companies book freight transportation on a daily basis. The average rate for dry vans, the most common type of tractor-trailer used to ship consumer goods, rose 11% in June compared with the same month last year, according to DAT Solutions LLC, an online freight marketplace.

The recent lift has fueled hopes for a broader freight recovery, and transportation firms will be watching closely this month to see whether the upswing holds. Spot rates can be a leading indicator for contract rates, the long-term prices transportation firms negotiate with shippers. Big carriers do the majority of their business via contract, and those prices have remained stubbornly low even as freight volumes rose.

“July is the canary in the coal mine for the industry,” said Cowen & Co. analyst Jason Seidl.

Overcapacity in the truckload sector, where customers book entire trailers to carry their cargo, has weighed on trucking companies since late 2015. Fleets that expanded during a previous boom found themselves with too many trucks chasing a smaller pool of freight. The glut has also tamped down rates in the intermodal business of moving container cargo over long distances by rail and truck.

At J.B. Hunt, the largest U.S. intermodal carrier, second-quarter earnings are expected to hold steady at $0.92 per share, according to a consensus of analysts via FactSet.

“Moving into 2018, you got to believe that at some point truckload rates may improve, even if just slightly,” Darren Field, J.B. Hunt’s senior vice president for the intermodal division, said at an industry conference last month. “It offers an opportunity for intermodal.”

Over the past 18 months large truckload operators have trimmed their fleets to reduce capacity and gain more leverage with shippers. Demand is also picking back up from manufacturers and retailers that cut back on shipping last year as they worked through excess inventory levels.

Still, it could be months before improvements in the spot market translate into broader pricing gains for most carriers, which often negotiate freight contracts in the first half of the year.

Rates may start to climb this year, and catch up in 2018, said Dave Yeager, chief executive of Hub Group Inc., an intermodal and brokerage provider that expanded its trucking portfolio this year with the $306 million acquisition of Estenson Logistics, which provides dedicated trucking services for shippers that have outsourced their private fleet operations. “It does appear that pricing is headed upward, versus that horrific downward trend we saw for quite some time,” Mr. Yeager said in an interview.

The surging spot market could shrink profits for freight brokers, which use it to source most of their trucking capacity. Citi recently lowered its second-quarter and 2017 estimates for C.H. Robinson.

Even as some truckload carriers report freight demand is picking back up, analysts expect earnings for their most recent quarters to lag behind compared with the same period in 2016 because contract rates remain low.

Better results are forecast for less-than-truckload carriers, which consolidate small shipments into trailer loads for multiple customers and have benefited from the rise in online shopping. Last month Old Dominion Freight Line Inc., Saia Inc. and YRC Worldwide Inc. reported increased freight volumes during the second quarter.

Original Source: http://www.foxbusiness.com/markets/2017/07/15/lift-in-demand-fuels-hopes-trucking-has-turned-corner.html

Original Author: Jennifer Smith

Original Date: July 15 2017

Posted in Uncategorized | Leave a comment

Customize Dedicated Truckload Services for Your Companies Logistic Needs

In our fast-paced global economy it’s even more vital that a business has access to reliable freight shipping services to get their products where they need to go, on time, and in good condition.

When a company needs a product shipped in a set time period, a delivery system that involves multiple handoffs, with trucks making multiple stops just can’t cope. Expedited freight shipping is the best way to ensure delivery of cargo that is timely in nature. With our modern time-sensitive economy expedited shipping is a booming industry.

While expedited shipping guarantees delivery (when businesses need it most) many organizations can still find it a challenge to secure a guaranteed delivery date during peak periods. As demand for capacity grows, there is an opportunity for freight companies to capitalize by offering dedicated trucking services.

The business of offering a dedicated trucking service is a booming market for several reasons.  Shippers are always worried about securing enough trucks to ensure delivery during peak times. Dedicated truckload services provide peace of mind as carriers guarantee capacity will always be available.

There are plenty of advantages for a business to use a dedicated trucking service. For one, it locks in the price, giving a company a clearer idea on operating costs. It also ensures a company always has guaranteed availability during peak periods; removing the guesswork and stress of securing freight from businesses that are cyclical in nature.

Truckload freight isn’t just a cyclical business; it’s a seasonal one as well. The assurance of demand that a committed trucking service provides means that trucking companies can give their dedicated customers a break in the typical pricing structure.

There’s plenty of value to be had from both sides of the equation when it comes to a dedicated truckload service, and as more businesses discover its worth, the industry is set to grow even further.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

Trucking Logistics Industry Ripe For Disruption

Trucking experts are not quiet about the technological disruption happening in the industry – from the move to alternative fuel powertrains to self-driving big rigs, digitally tethered to one another in specially designated lanes.

One gear in particular will set this future in motion: logistics.

Logistics delivers a $6 Amazon purchase from warehouse to doorstep in two days. It moves a new car from a lot in Las Vegas to a driveway in Southern California. It moves tomatoes from farms in Mexico to grocery shelves in New York.

The industry is also undergoing a digital evolution headed by tech companies seeking a cut of the $700 billion in revenue generated by logistics in 2014 and 2015.

Investment deals with trucking startups reached a record high of more than $750 million in 2016, CB Insights said in a recent report. Through the first half of this year, trucking tech startups have already raised $478 million, and the research firm expects funding to surpass last year’s total.

It’s a good time for tech companies to start up and get a piece of the pie, said Somil Desai, chief executive and co-founder of digital freight quote marketplace ShipLync.

Incorporated in 2016 and based out of Columbia, Md., ShipLync only has five employees. The company is self-funded and has been “bootstrapping everything” so far this year, Desai said.

But he already has more than 2,000 users – a mix of brokers and truckers – signed up to use the on-demand freight platform he created from scratch.

Here’s what Desai had to say about the industry his company is trying to change.

Why is the logistics industry so ripe for disruption?

The logistics industry is a very antiquated, paper and pen industry. It still relies heavily on relationships – sending emails, sending faxes. The booking process after a deal is confirmed is very tedious. There are a lot of people involved just to make a scheduled load succeed. And it starts with getting a freight quote, which usually takes a lot of time – a few hours or a day. If you’re a shipper cold calling around, it could be a very frustrating process. Knowing that there are new tools in the market to make logistics jobs ten times easier is where the disruption is going to happen.

Is there a specific area within the logistics industry that is more vulnerable to tech disruption?

It depends on what part of logistics a tech company wants to go into. If you’re getting into the freight quote marketplace, there are many segments: long-haul trucking, short trucking, export, port drayage, rail, air freight. It depends on what niche a certain tech company likes, what they find there and aggressive growth.

How long will it take for logistics to go fully digital?

Between two and seven years. A lot of the old “mom and pop” trucking companies still do business the old-fashioned way, and they may be slow to adapt to technological changes in the industry. As we are advancing over the next five to seven years, ultimately, they will be forced into that direction.

How does ShipLync differentiate itself from its competitors?

I get this question a lot. We are different because we are a freight quote marketplace, we are not a broker, we are not a freight agent, or a freight forwarder service. A lot of the other competitors – such as TransFix, Cargo Chief, LoadSmart or a lot of the other startups – we are partnered with them. They use our service as a way to retain incoming leads from shippers. 

Why do they need to use your marketplace?

Our platform is specifically designed for direct shippers who are owners of the product – and shipping the product they own – to receive real-time freight quotes on demand from all of these service providers, whether it be TransFix, C.H. Robinson or XPO Logistics. All the way from the startups to the billions dollar players. These guys are always looking for new leads, and they are able to bid on different freight movements, or lanes, for free – lanes that they like and they know they can service properly. They can give cost-competitive quotes that the shipper is able to see and dissect from a multitude of other freight brokers in real time.

Does excluding shippers from the bidding process create a problem with pricing transparency?

Of course. When shippers can ultimately see real-time freight quotes coming in from 10 to 15 brokers and compare it to what they’re used to paying, they’ll know if they’re getting ripped off by 25 percent or if they’re paying more than they should. And cheapest is not always the best, but at least they have the data and they have the option to see what is truly out there.

Is there a possibility that this technology will eliminate the need for brokers?

It is a possibility. But for us, it’s not our goal. The broker plays a very important role in the logistics industry. They have all the insights and the connections to multiple carriers. A lot of startups in the field are looking to cut off the middle man. We want to team up with them. A lot of direct carriers only want to deal with the brokers because they don’t have the tech knowledge to jump on the sites. We do not want to cut them out. We want to keep them in the middle.

What is your biggest challenge?

The biggest challenge is always going to be educating the shippers on the platform – showing them how to use it. They are used to dealing with a few guys and that’s it. Educating them on the market, what’s changing, what options they have available to them, what they could use it for and how it could benefit the company in the long run. Also, there are so many other tech companies popping up on the grid, so having the options available and knowing what freight marketplace or tech startup to try to integrate or team up with. 

Who are your biggest supporters?

The service providers. We’ve gotten good feedback from them. They love that a lead can come to them directly and they can deal with the shipper as opposed to dealing with another broker in the middle. Our platform also gives them the opportunity to create additional revenue for themselves.

Original Source: https://www.trucks.com/2017/07/11/trucking-industry-ripe-for-disruption/

Original Author: Carly Schaffner

Original Date: July 11, 2017

Posted in Uncategorized | Leave a comment

The Practice of Cross Docking Within the Transportation Industry Part 2

By eliminating the put-away process, companies reduce 3PL warehouse requirements and inventory level when using cross docking.  In addition, these firms reap the benefits of consolidating their freight.  This lowers transportation costs while improving product availability.

Successful implementation is dependent on continuous communication between all members of the supply chain including: manufacturers, wholesalers, distributors, and retailers. This can and should ideally include logistics software integration between all members of the supply chain, including the ability to track inventory in transit.

The savings in time and money from the use of this procedure can be significant depending on a variety of factors.  These include the handling methods used, the complexity of loads, freight costs for the commodities being shipped, the costs associated with inventory in transit, and the customer/supplier geography.  These factors can be particularly important when a client has numerous branch locations, distribution centers, and/or retail locations.

Cross docking services save companies time and money.  Cross docking service are defined as having the ability to receive the product and immediately ship it out without putting it into a 3PL warehouse.  When implemented properly this practice has many advantages, especially in the areas of lowering costs and saving time.

5 Key Advantages of Cross Docking Include:

  • Reduced handling and operating cost
  • Less storage of inventory
  • Fewer warehousing costs
  • Reduced fuel costs from consolidating LTL shipments into FTL
  • Streamlined supply chain resulting in products moving quicker from manufacturers to distributors to consumers

Before initiating the use of cross docking services, you should be sure that all potential partners have the necessary storage capacities.  In addition, partners should also have an adequate transport fleet to operate cross docking as well as an adequate IT system.

Some products are better suited to cross docking other than others.  Here is a short list of six types of materials that are well suited to this procedure:

  • Perishable goods requiring immediate shipment
  • High quality items that do not require quality inspections during the receiving process
  • Products that are pre-tagged, pre-ticketed, and ready for sale to the customer
  • Promotional items and items being launched
  • Staple retail products with a constant demand and/or low demand variance
  • Pre-picked, pre-packaged customer orders from another production plant or warehouse

Cross docking has continued to increase in popularity over the years.  A survey that was recently conducted showed an increase of 16.5% over the last three years with 68.5% of the companies surveyed are using it within their supply chain.

Three typical scenarios where cross docking is well suited:

  • Deconsolidation: Where large shipments such as railcar lots are broken up into smaller lots for ease of delivery
  • Consolidation: Where a number of smaller shipments are combined into one larger shipment for more economical transport
  • Hub and Spoke: Where good are transported to one central location and then sorted for delivery to various other destinations

With its flexibility, efficiency, and ability to accommodate unpredictable customer demand, cross docking is seen as a winning strategy.  Allowing companies to adapt to the current economic environment and business conditions we face in 2017 and beyond.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

 

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

The Practice of Cross Docking Within the Transportation Industry Part 1

In the world of trucking and logistics, cross docking is the practice of unloading goods from an inbound trailer and loading these goods directly onto an outbound trailer.  Trucking companies complete this process without sorting the goods in a warehouse between receiving and shipping.

There are many reasons for this type of transfer including:

  • Sorting goods intended for multiple destinations
  • Combing goods arriving from multiple point of origin for transport to a single destination or several destinations along one route
  • Transferring goods from one transport to another (example: switching between large a large trailer to a smaller one

Cross docking procedures were initially developed in the 30’s by the U.S. trucking industry and have remained in continuous use in the LTL (less than truckload) segment of the trucking industry to this day.  Cross docking infiltrated the retail market in the 80’s when Wal-Mart pioneered its use.

In LTL trucking, cross dock operations often involve transferring goods from one vehicle directly into another with no warehousing of those goods.  This process can be used to split tractor trailer loads into multiple smaller vehicles or vice versa.  Cross dock operations may utilize staging areas adjacent to loading docks in a warehouse.

Inbound goods can be sorted, consolidated, and held until the outbound shipment is completely ready to ship.  The goods are not really received to be put into a warehouse and put away but rather they are held in a staging area to await transfer from the inbound loading dock to the outbound loading dock.

Pros of Cross Docking:

  • Streamlines the supply chain from the origination point to the final destination/end user thus resulting in products getting from the manufacturer to the distributor to the customer quickly
  • Decreases handling and operating costs
  • Reduces the storage of inventory
  • Lessens warehousing costs
  • Reduction of fuel costs when consolidating LTL shipments into full loads
  • In the retail sector it may increase available retail space in brick and mortar stores

Cons of Cross Docking:

  • Some potential partners may not have necessary storage for staging areas needed during cross docking operations
  • Other potential partners may not have a large enough trucking fleet to implement cross docking procedures
  • Requires sufficient IT systems to implement
  • Additional freight handling during transit can increase the potential for damaged cargo

In our next installment we will continue our discussion on cross docking and it’s affect on trucking companies and third party freight shipping companies.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

 

 

 

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

Ease Your Search For A Trucking Company That Meets Your Freight Transportation Needs

When you are looking for a trucking company to provide logistic services to your company it can be super easy to overlook important aspects such as on-time service and customer service only focusing on the expense.  Within your supply chain there are a number of places to seek out a solid bargain but your freight carrier is one area where your budget is just one of many factors to consider.

A side by side comparison of numbers alone will not offer you an accurate enough picture on the services you should expect from a freight carrier.  Although a quote is a place to start it is important to look into a number of aspects especially if looking to build a viable relationship long term.

There are a number of items to address before you begin working with a trucking company as they provide an integral service to your business.  It is important that a level of communication and expectations are defined before services begin to avoid confusion.  One important aspect to consider is how different issues will be handled.  What will happen if a customer calls and their shipment includes several items that are damaged?  How are issues with drivers handled?  The last thing that you want is to receive a call from a disgruntled client.  An issue arising from outside of your control can be incredibly frustrating especially when it results in a loss of future business.

When it comes to selecting a full service transportation company it is important to find a company that respects your shipments, customers, and service values while offering competitive rates.   You should be able to depend on their services; when you pass off your shipment you should fully expect your shipment to get to its destination on time and without being damage.  Each shipment should be a priority.  Caring about your shipment shows that they care about you and your customers.

When looking for trucking companies it is also important to work with a company that is going to be able to meet all of your needs from just in time shipments to dedicated truckloads.  Along with extra services that may be needed including cross-docking and warehousing.  A company that provides a number of essential freight services is better able to meet the demand of their customers meaning you can meet the demands of yours.

You will be satisfied when your customers are satisfied which will result in a positive return on investment for all three parties.  This can all be accomplished by choosing a trucking company to transport your freight whose mission is in sync with yours.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment

Trucking Is Vital to the Management of Your Supply Chain

Third party freight carrier organizations are now considered a vital part of supply chain, for every type of business. Third Party Freight Carrier offer amenities that can permit organizations to outsource some portion of their supply chain management function.

The explanation and definition of third party shippers tend to be somewhat varied as there are numerous definitions, contingent upon the industry and supply chain manager. Some say that third party freight carriers encompass all or a huge part of the supply chain, while others say it is just one section.

The best clarification of third party carriers’ administrations is likely a mix of those two ideas, third party shippers are organizations that give one or many of the accompanying third party coordination administrations:

  • Transportation or Freight Management (involving innovation, cargo bookkeeping, and administrations around cases).
  • Open/Contract Warehousing
  • Dissemination Management
  • Freight Consolidation

Different Types of Third Party Carriers Services:  Again, contingent upon whom you ask, you will find a few diverse solutions on what sorts of third party carriers are out there. To make it much all the more confounding, diverse 3PLs can be in just a single of these sorts, or seep into others. As expressed beforehand, the objective for you as a shipper is to comprehend your necessities and maybe assemble from this convenient agenda what your prerequisites are so as to best evaluate what kind of third party carrier organization you ought to begin taking a gander at procuring.

The following are the qualities and characteristics of the distinctive sorts of third party carriers:

  1. Asset-based carrier services: These firms utilize their own particular trucks, warehouse, and staff to operate their business. They have their own particular armada of trucks and offer a comprehensive set of carrier services. These companies fixated on intermodal carrier solutions and Ocean Freight. Functions are normally organizing shipments, traditions freedom, and shipment perceptibility and carrier administration/rate administration. Advantages of working with this kind of firm are ordinarily shorter process duration; bring down freight cost and perceptibility of pipeline stock.
  2. Warehouse/Distribution-based carrier services: These corporations have a warehouse as well as distribution experience. They also have their own private fleet and have strong relation with LTL and Full Truckload Carriers. Occupations incorporate work and supervision, getting, capacity and delivery. Services incorporate lower capital investment and lower settled/variable cost proportion.
  3.  Non-Asset-based carrier services: These firms don’t have their own trucks or warehouse space. They give outsourced carrier arrangements and freight brokerage benefits and have an expansive system of cargo carrier that they collaborate with.
  4. Financial-based carrier services: These organizations give freight payment and reviewing, charge accounting and control, apparatuses for observing, booking, following and locating and administration stock. Functions incorporate stock fund, dispersion finance, installment arrangements and renting. Advantages have decreased the cost of capital, enhanced income, and diminished capital investment.

Thus, numerous organizations offer an extensive variety of third-party carrier services including; inbound freight, cargo solidification, warehousing, and supply, order execution, and outbound cargo allow companies to supply their goods to different places.

Matrix Transportation is a leader in third-party logistic services offering ltl transport throughout Michigan, Illinois, Indiana, Wisconsin, Kentucky, and Ohio.  We understand that on-time transportation is the key to a successful business supply chain.  For more information find us at http://www.matrixtransportation.com or via email at jkiefer@matrixtransportation.com.

Posted in Uncategorized | Tagged , , , , , , , , , , , | Leave a comment