Products have a long way to go from manufacturer to end-user. They often travel from one warehouse to another along the distribution line. If they go out of stock in one store, replenishment can take time due to practical concerns with delivery. It would not be viable for businesses to send a handful of items to one location because these would not fill a truck. They usually wait until there are enough orders from multiple contacts to send these out. Logistics providers have developed a practice called cross-docking as a solution that improves the system in the following ways:
Shorten Delivery Times
Businesses will no longer have to wait such a long time before sending out orders. Those who made the request also won’t have to stretch their patience in getting what they need. The delivery time after placement will be much shorter since trucks can be loaded with items from multiple companies and shipped in one go. This may involve the unloading of materials at various points along the route and loading them into another truck without having to be stored in a warehouse. This will obviously require a lot more strategic planning but systems have been developed to increase efficiency.
Improve Order Fill Rates
Since orders can be fulfilled quicker, business can maximize the opportunities that come their way. They can say yes to more people with confidence knowing that they can deliver before the expected date and time. Whereas they might have had to provide long lead times and have difficulty filling orders in the past, the use of cross-docking will tremendously improve the flow and goods and the satisfaction of their partners. Everybody wins with this system.
Lower Warehousing Cost
Since the goods are carted off from one truck to another, there is no need to pay for warehousing along the way. This is an extremely cost-effective solution that conserves resources thanks to logical planning. Sometimes boxes may have to be taken to a warehouse for sorting before they can be loaded onto the outbound trucks but this will be quick and easy. Associated costs are minimal so there shouldn’t be any worries. It will still be lower than before.
Free Up Space
Lastly, businesses can free up space in their own storage units by reducing excess inventory right away. The empty shelves can be put to good use by getting more goods from other suppliers or whatever it is that is needed at any particular time. Things will never pile up again as you can push products out the door consistently. Find the best dock services in Dallas today.
