What industry is best suited for cross docking services? Cross docking is effectively being used around the world in industries where speed of transportation is highly required yet at a reasonable price. But the industries that take the most advantage out of cross docking are the two that have the least cost to implement it in their businesses. But what industries do they fit into?
Shipping & Logistics: Shipping & Logistics companies utilize a large part of their time and money in the supply chain logistics. They use the cross docking services in order to make the inbound shipments of goods available at the specified times. This makes it easier for them to meet the deadlines of their customers in a fast manner. The time they save with these services also allow them to provide better services and lower costs to their customers.
Consumer Products: When we talk about consumer products, we generally tend to associate them with the high-end market segments. But the fact is that these products are also cross docks ready. This means that the transport and logistics companies also handles the inbound shipments of consumer goods. In the case of consumers, it means that the goods come from the manufacturer ready to get deployed. And when the retailer purchases them from the distribution house or the manufacturer, this automatically falls under the category of logistics used by the retailer.
Engineering: Just like other fields of transportation engineering finds its niche in the cross docking services. Engineers normally use shipment services in order to transport raw materials and finished products to their final destination. For instance, if an engineer needs to transport water in a tank, he would call upon a cross docking service to fill the tank in the specified location, pack the material, and then transport the container to its destination. Again, if the company requires raw materials to be shipped from one location to another on a train, they will first need to obtain a permit or authorization from the rail company, ship the raw materials on the train, and then load them into containers for transportation.
Warehousing: Cross docking services have proven to be very beneficial to warehousing operations. Warehouses have been greatly benefited from this service because they eliminate the expensive lead times in shipping and transportation of finished goods. If you will recall, the average lead time in shipping products was anywhere between six to nine months. At times, companies even had to purchase the goods in advance in anticipation of receiving them from the distributors. With warehouse cross docking services, companies will no longer have to face these expensive costs.
This results to an overall cost reduction in the form of lower inventory turnover, improved supply chain management, and lower transportation costs. These savings are then passed on to the customers in the form of lower prices and better service. The key is to find a cross docking services company that can provide you with the tools and software necessary to track your inventory and handle your new and existing cargo needs. Continue to learn more about warehouse here: https://en.wikipedia.org/wiki/Warehouse.