Cross dock services are among the many services we offer here at Shipping & Handling of Texas. It is surprising how many clients come to us without any knowledge of cross docking. Once explained, some begin wondering if cross docking would be good for the bottom line.
We cannot say one way or another for a particular business. But we can explain the basics of cross docking. The cross-dock concept is an offshoot of something known as the ‘lean supply chain’, an idea born from technology’s impact on logistics and supply chain models.
More About the Lean Supply Chain
As recently as 20 years ago, manufacturers made a habit of producing more than they needed to meet current demand for the purposes of warehousing surplus inventory. The extra inventory was always on hand to meet any unexpected demand down the road. It also acted as emergency inventory in case production slowed for any reason.
Companies began looking for a leaner and more efficient way to do business at the turn of the century. From that need came the lean supply chain. Among its many foundational principles, the lean supply chain favors rapid fulfillment over warehouse storage. It favors producing just enough inventory to meet current demand, with the caveat that there are means in place to facilitate rapid delivery at a moment’s notice. That is where cross docking comes into play.
More About Cross Docking
Cross docking is just as its name implies. At a facility like ours, you have both inbound and outbound docks. Inbound docks receive goods coming in from manufacturers and distributors. Outbound docks serve the trucks that will pick up incoming goods and deliver them to their final destination – usually retailers or consumers. Simply put, freight is moved across the dock from the inbound side to the outbound side.
A big advantage of cross docking is that it allows for larger shipments from distributors and manufacturers, shipments that are ultimately divided into smaller volumes for last mile delivery. A good way to conceptualize this is to consider a distributor that sends snack foods to every retail outlet of a regional convenience store chain.
That distributor can send larger trucks to a local distribution center with cross docking services. Trailer loads can be divided into smaller trucks for deliveries to individual convenience stores. The distributor is able to move larger volumes of goods at a much faster rate. Take cross docking out of the equation and the distributor’s tractor trailers need to service each convenience store separately.
Advantages of Cross Docking
We offer cross dock services because our customers want them. By the way, we aren’t the only providers. Cross docking has become standard fare in the logistics game. It is a viable option because it offers so many advantages:
- Faster Movement – Not having to worry about warehousing allows for faster movement of goods. What goes out the door go straight to the distribution center and off to its final destination.
- Greater Agility – Cross docking allows for more agility in terms of inventory control and delivery. Goods can be concentrated where they are most needed, at the exact time they are needed. When needs change, goods can be routed elsewhere.
- Reduced Handling – Cross docking also reduces handling by taking warehousing out of the equation. Fewer people handling the same goods saves money and time, and reduces costs associated with product damage.
Cross docking is the linchpin of the lean supply chain. As long as companies want to keep logistics and delivery lean, they will need cross knocking services strategically located within their distribution reach.