Cross-docking services can be said as the ability to receive products and ship immediately without having to store in a warehouse. 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. her are some of the main advantages that will make many companies want to use the process.
The first thing the companies have experienced is cut prices both in the handling of goods and in operations. Since the goods are not being stored, there are lees of good handling as there is no packing and unpacking goods in the warehouses. That automatically reduces the need for store inventory. 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 can be sent directly, the companies will save a substantial amount of money used to managing warehouse.
At the same time the companies will save on reduced fuel costs from combining the full shipment loads. Another advantage is the faster movement of goods from the manufacturer to the distributor and reach the customers faster. Perishable goods will be transported much faster without sophisticated transportation. The perishable goods will not need to be stored in the warehouses. That will reduce the number of electricians working in these warehouses which is a cost reduction 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. Screening of products with this process is much easier. 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 effectiveness of the process depends on some factors. The process will depend much on the handling method of various goods for its success. 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. It is the desire of every company to make sure that their clients’ needs and shifting demands are met. The increasing use of the process will move companies toward achieving that goal.