Cross-docking refers to the process of obtaining goods directly from the manufacturer and shipping to their destination without storing them in warehouses. The companies will be comfortable using it as it is both time and money saving process. Companies are experiencing various benefits when they use the process. Below are some of the leading benefits that businesses have experienced with the process.
First, the process reduces handling costs and operating costs. 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 means storage of inventory will become less and less useful. Since the goods are not being stored in the warehouses, it goes without saying that there will be no need for store 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. Now that goes can be shipped without having to pass through the storage houses, that will reduce the operational costs substantially.
Another advantage is that the process reduces fuel costs from consolidating shipments. Again the goods from the factories will move faster through the distributor to the consumer. The perishable goods will not need to stress the logistics team with cooling transportation as they will be taking less the to reach their final destination. 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. At the same time transportation of goods is much less expensive as you will be able to transport full loads. The process makes it easier to screen products. The consumers can get what they want much faster as compared to the other process. The process is better for some products than others. Some of these most suited are the high-quality items that require no quality inspection.
The effectiveness of the process depends on some factors. The handling method applied in each case is a great determinant of how effective the process will e. How complex he load is also plays a vital role I determining the process.
The best thing the process is flexible, efficient and can accommodate unpredictable customer behavior and their demands. Every company strives to make sure that their customers are satisfied even when the demands keep on shifting. The service will go a long way in helping companies achieve that goal.