Cross-docking is one way to add efficiency to the supply chain as well as cut costs in the shipping process. In essence, cross-docking takes the storage step out of the supply chain. Products that are incoming via truck transportation are unloaded and then placed immediately back on the next vehicle for transportation. Cross-docking is desirable for both the buyer and consumer. Let’s look at a couple of the advantages cross-docking brings to the trucking industry.
Advantages of Cross-Docking
- Products spend less time in the warehouse
When cross-docking is in use, products spend exponentially less time in storage. Products that come into the warehouse are then moved to a sorting area and then onto the next truck that will transport the products to their final destination. It is estimated that the products are generally only in the warehouse for around 24 hours. This is especially advantageous for pharmaceuticals, food items, and other products that have a shorter shelf-life and need to be moved quickly through the shipping process in order to preserve quality. Oftentimes the largest cost companies will spend is on the storage costs of a product. With cross-docking, that expense can be decreased since the product is not being stored in a warehouse for an extended period of time. Reduced costs are applicable to both the buying organization as well as the supplier.
- Products are shipped quicker
Because the products are spending less time in storage, the products will arrive at their destination quicker than others not participating in cross-docking. This gives companies a competitive advantage over their competitors. Improved shipping times leads to improved customer service and satisfaction. Rather than a storage or warehouse facility, a distribution center acts more as a sorting facility.
- Environmentally friendly
With the conscious act of sorting the products that are coming in, as well as consolidating products, items going to the same or similar locations get placed on the same truck. These trucks then have to cover less miles and have a fuller load each trip. This reduces the carbon footprint of the trucking companies. Along with maximizing the usefulness of each load, shipping costs are then reduced as well. Also, there are less transportation costs needing to be budgeted with this implementation.
At Al-Amin Brothers Transportation, we strive to provide efficient and quick performance so that our customers can reap the benefits of a quality performance. Al-Almin Brothers specializes in cross-docking among other trucking services. If cross-docking would be of benefit to your company, reach out to Al-Amin Brothers Transportation!
Visit our service page to see our full list of offerings. Feel free to reach out via phone at (708) 895-5060. We look forward to hearing from you soon!