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. The process is relevant to the companies because it saves them precious time and money. 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. Since the goods are not being stored, there are lees of good handling as there is no packing and unpacking goods in the warehouses. It follows that there is reduced storage inventory. As the goods are leaving the manufacturer to their destination; it reduces the need for store inventory. That will mean that the warehouse costs will reduce automatically. practically companies spend so much money paying for the warehouses and managing 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 the faster movement of goods from the manufacturer to the distributor and reach the customers faster. All the perishable goods will be transported faster to their destination without thinking about cooled transportation system. The perishable goods can be shipped without passing through the warehouses. When perishable goods are not stored in the warehouses, the need for electricians will go down and that cost-effective to the companies.
When you compare the cost of building a warehouse and that of cross docking terminal, you will find that the terminal is far much less expensive. With the transport vehicles able to carry full loads, the cost of transporting goods is so much reduced. It is also an easier way to screen products. The consumers can get what they want much faster as compared to the other process. There are some products that are more suited for this kind of transportation 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 best thing the process is flexible, efficient and can accommodate unpredictable customer behavior and their demands. 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.