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