Guide to Cross Docking If its decision making organizations have their priorities when it comes to costs and warehousing, and cross docking has to be considered and weighed up since its implementation has many disadvantages. There might seem to have advantages when cross-docking especially because in logistics jargon, when an item sits, cost is entailed until it reaches its intended destination. In reality, there is very little or no handling or storage time considered when cross-docking a product from a suppliers or manufacturing plants distributing items directly to its customers or retain chain, and so less price is paid. The disadvantage of a cross-docking operator is that it requires much management attention, time, and planning which are all necessary to make it work effectively. We can look at it this way, that when cross docking is implemented or before it is implemented, there is a need to set up the cross docking terminal structures and link them to semi-trailer trucks or railroad cars into outbound trucks with little or no storage in between, and this would require time and capital unlike warehousing where, the job is to establish a warehouse, advertise the facility and maintain a good account of its inventory. A cross-docking client can take advantage of this facility since they have a comfortable reliance that suppliers would deliver their goods to the customer without breaking up the entire supply chain through cross-docking terminals. It is important for cross-docking clients to have speed to grow their organization and to achieve a competitive advantage, so the most important factor here then is the productivity of a supply chain. This is especially true these days since customer satisfaction weighs heavily on an organizations survival. It is the supply chain that keeps or loses customers. Two companies selling the same item with the same price, but differing in time that the customer can pick up the item will both provide convenience to a customer but the one that allow the customer to have them much earlier than the other will give the customer more satisfaction. The organization’s supply chain management gives the customer this sort of satisfaction.
Doing Docks The Right Way
With cross-docking a lot of companies have benefited from reduction of labor costs because it does not need to be packed and stored, reduction in time in packing from production to customer, which aids customer satisfaction, and reduction in the need for warehouse space, since there is nothing to be stored.
Doing Docks The Right Way
There are different types of cross docking including manufacturing cross-docking, distribution, transportation, retail, and opportunistic cross-docking where it can be used in any warehouse, transferring a product directly from the receiving dock to the outbound shipping dock to meet a known demand.