Advantages of Cross Docking

Oct 26, 2017 · 2 min read

The term cross docking means the process of transporting manufactured products from the manufacturers directly to customers. Manufacturers play a vital role in the business sector. Business is a chain. People in business must buy and sell products and services from others in quest of profit making. The supply chain of goods is composed of two persons- wholesalers and retailers. Wholesalers are individuals that receive products directly from manufacturers. Wholesalers, after that surrender the products to retailers. Retailers then finish the supply chain by making the products to be available to the consumers. The supply chain is very different when it comes to the cost of products. Every person in the chain aims to earn a profit. The price of products from the manufacturers is usually less as compared to the price of selling the products directly to customers. One of the biggest things in the supply chain is transport. Some of the manufacturers nowadays have shifted to cross-docking at this website. Cross-docking does not involve wholesalers and retailers to transport products to consumers.

The process of cross-docking requires particular kinds of vehicles. Manufacturing industries are known to produce products commercially thus needing trucks for transportation purposes. Trucks are chosen for the transportation of goods as a result of their large size. Trucks are also designed to move for very long distances without difficulties. Some of the manufacturing companies also are known to outsource these trucking services for their products. Hiring trucking services need one to be appropriately connected with the contractors for safety reasons. There are several advantages that come through cross-docking. One of the benefits of cross-docking is removing the need of having a storage space. Manufactured goods need to be stored waiting for the supply chain to start. Cross-docking removes this process of storing goods by directly transporting the manufactured products to the customers. This aids in reserving space for doing other things in the industry.

Cross-docking reduces labor and transportation cost. In most cases, the manufactured goods must be transported to retailers before they get to customers. This process makes the manufacturers spend some extra cash on transport and labor. It saves time to transport products from the manufacturers to the customers. This is known to make buyers to receive the products while fresh. Fresh products are always the priority number one to buyers. Cross-docking removes the chances of mishandling of the products before they reach to buyers. A lot of handling of the goods can lead to their damage and loss of value.

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