Cross-docking is a logistical strategy where products and materials are unloaded from one inbound source (truck, railcar, etc.) and then immediately moved onto outbound transportation with as little storage time as possible. This is desirable because the longer products sit in a warehouse or other storage location, the less overall value they provide.
At Alberaa Freight, we can do three cross-docking at the time (120 ft. loading docking), fast and smooth switching, we also have the experience in layout products on pallets, shrink wrapping then stuffing them inside containers in the most efficient way, fast service, no time, safe money.
We have been doing frozen see fish for a bite and water pallets for Costco products successfully and our clients are very satisfied with the services that we provided. Also, we can plan methods, give creative ideas, or work overtime to make your cross docking happen on time.
There are many other reasons why avoiding product storage as much as possible is a good idea. Eliminating waste and risk are important for any company and are the focus of strategies such as 5S
Avoid Storing Products
Any time a product is stored is time that it is not creating value for the company or the customer. In addition, storage time introduces additional risks. The following are some key reasons why a company should avoid storing products:
Drop-in Value – Products that are kept in storage can potentially drop in value due to changes in demand, aging issues, and more.
Change in Demand – Demand for most products changes over time and in many cases drops. Products in storage are at risk of becoming undesirable and therefore worthless.
Damage or Theft – Having products sitting on a shelf in a warehouse leaves them exposed to the risk of damage, theft, or other issues.
Cross-docking helps simplify the warehousing and distribution of products for many companies. Previously, a company often has to have multiple suppliers or sources bringing each product to its retail store. As you can see in the image below, however, cross-docking has all the suppliers bringing products to one central location.
From there, the retailer receives the products, sorts them, and then ships them where they need to go. This gives the retailer much more control over which store is going to get which products.
Advantages
While certainly not the right logistics strategy for every company, it can provide many great benefits when used properly. Some key advantages include:
Control – Companies get to direct product levels at a much more detailed level. This ensures each retail outlet gets exactly what it needs to meet customer demands, no more and no less.
Just in Time – Cross-docking is often used for just-in-time manufacturing where supplies are delivered where they are needed as they are needed to ensure there is no excess storage of parts or products.
Lower Warehousing Costs – With this type of distribution strategy in place, there is much less need for warehousing products, which saves companies money.
Organized – When properly implemented, this strategy can help keep a company’s supply line more organized.
Reduced Labor Costs – With less storage and warehousing, there is less need for people handling the products, which can help drive down labor costs.