A Beginners Guide To Docking
Cross docking is one of the practices that have enabled different companies to transport their product using the shortest time possible. The cross docking practice helps the companies or the shippers to save time as they receive their goods as soon as they are shipped in without their goods being stored in warehouses. The cross docking practice thus primarily serves to save the shipper both time and cash. There are several benefits that cross-docking has, and one of them is that it reduces the handling cost and also the operating costs. By not storing your goods in a warehouse one also saves warehousing costs as well as the storage of inventory thus reducing the cost of shipping products significantly. When practicing cross docking when a company is shipping products, the chain of distribution is streamlined making sure that clients get their orders in time while a company also saves on fuel costs as their shipments are consolidated into one full load.
When one is interested in initiating the cross docking services they need to ensure that their potential clients have the storage capacities. For cross docking to be successful, one also needs to ensure that their partners have a functional transport fleet to carry the loads. Cross docking also relies on the availability of a functional IT system.
There are several products that are better placed to be transported through cross-docking. One good example is perishable goods which need to be shipped quickly as slow transportation will lead to losses. Another type of a company which should consider cross-docking is a company that ships high-quality products which require no inspection when one is receiving them. There are other products which are ready for sale to the clients which are characterized by a pre-tag such as a bar code or a RFID chip which are also suited for cross-docking. If the products that have been shipped are being used for promotional purposes or during a launch, or when the products have a constant demand or low variance in demand, they are also suited when transported through cross docking practice. When a company ships products which are pre-packaged or pre-picked which are shipped as orders from their customers, they are better handled through cross-docking.
The success of cross-docking is dependent on a number of factors such establishment of constant communication between the manufacturer, suppliers, and distributors. To make sure that there is efficient communication between the partners involved, there is the need to have software in place that enables them to trace their inventory in transit.