Cross Docking

In common parlance the term cross docking means shifting a particular product from the place it is manufactured and sending it to the customers directly. It is a very widely used technique now a days by the companies providing logistic solutions. During the time the product is delivered to the customer, you will not find any kind of material handling. There are various kinds of cross docking developments that are effectively utilized by warehouse administration. Here are a few of the cross docking operations that are beneficial for warehousing firms.

When a particular route is chosen for transporting goods from one location to the other, it is referred to as transportation cross docking. The operation where in a product is transferred directly from the dock where goods are received to another dock, it is known as opportunistic cross docking. The process in which purchased inbound products needed for produce are received is known as manufacturing cross docking. Retail cross docking is a procedure where in numerous products are received from multiple vendors. The receipt of products are sorted out on outbound trucks and sent to various retail stores.

Benefits of Cross Docking

It is beneficial as it minimizes material handling to a great extent. It also reduces our reliability on warehouses, as we do not have to depend on a warehouse for storing products. Docking operations are beneficial to several companies. Logistics firms utilizing this docking operations have found considerable reduction in labor costs. The reason is because the products do not need to be stored in warehouses any more. Customer satisfaction is the foremost goal of every organization and the same goes with logistics firms, who mainly focus on customer satisfaction. This docking operations minimize the time of production and this enables to largely focus on customers. This in turn improves the way of dealing with customers. One of its greatest benefits is that no storage facility is needed for storing any inbound material. Opting for storage services becomes inevitable during certain situations. These situations where there is a necessity to opt for storage include change in the mode of transportation and distribution services. Another benefit is that it helps reduce transportation costs to a great extent by managing it efficiently, combines shipments and improves business on the whole. Most logistics firms these days are gradually recognizing its value with rise in competition. Logistics firms are turning towards outsourcing this service in the near future.