When you hear the word cross-docking, it should bring to you the idea of collecting products and transporting to the destination without having to store it first. Implementating the process fully will bring value to the companies as it is a time and money and time-saving. Why many companies may switch to cross docking process is because it has a number of advantages. Below are some of the leading benefits that businesses have experienced with the process.
The first thing the companies have experienced is cut prices both in the handling of goods and in operations. The little or no use of the warehouses and therefore goods are not being packed and unpacked from them, and thus the handling cost goes down. That automatically reduces the need for store inventory. Since goods are shipped directly to their destination, there is, therefore, no need of keeping storage inventory. That means since the warehouses are not in use, the cost definitely goes down. Companies spend a lot of there money paying for warehouses and the people to man them. With goods moving to their destination directly, the companies will breathe a sigh of relief as far as the warehouse money is concerned.
Also the companies will enjoy reduced fuel costs because they will when due to consolidating shipments into full loads. Another advantage is that the goods will be leaving the manufacturer to the distributor and the customer faster. All the perishable goods will be transported faster to their destination without thinking about cooled transportation system. The perishable goods will not need to be stored in the warehouses. With no perishable goods in the warehouses, the electricians will be fewer reducing the cost for the companies.
It is also vital to note that the cost of constructing and managing warehouses is far much lower as compared to cross docking destinations. With the transport vehicles able to carry full loads, the cost of transporting goods is so much reduced. The process makes it easier to screen products. The consumers can get what they want much faster as compared to the other process. There are some items that fit into category more than others. Some of them are the high-quality items that are never subjected to quality inspection.
The process and its effectiveness depends on some factors. Some of the factors that determined the effectiveness include handling methods used. How complex he load is also plays a vital role I determining the process.
The good thing is that the method is flexible and efficient enough to meet the customers” needs and changing demand. The customers’ needs and demands keeps changing but all the companies look for different ways of making sure they leave their customers happy. The service will go a long way in helping companies achieve that goal.