Cross docks

All about Cross docks

Measuring the Effectiveness of Cross Docking

Those starting a new cross dock system must have a solid understanding of their logistics plan to determine how their system is affecting their business as a whole.

  • Pallet storage can be evaluated by cube weight to better understand how shipping costs are affecting the facility’s shipping costs.
  • The time it takes to receive each truckload will help to determine the effectiveness of shortening shipping routes.

In addition to noting how original shipments are being delivered, it is in the company’s best interest to evaluate how shipments can be condensed or combined to eliminate the number of shipments necessary to address the company’s needs.

Most companies today are implementing cross docking systems on at least a small scale to better improve the effectiveness of their business.

Growing Cross Docking to a Mainstream Level

Cross docking is becoming a common choice for major retailers to ship their products in a more effective manner, but how might a smaller business take advantage of these points?

Companies must consider the points in favor of using such a system to determine the most appropriate way to implement such a system in their own organization. This system can easily be customized to best address the needs of a growing organization.

Points in Favor of Cross Docking 

Those looking to invest in direct cargo reloading facilities can consider a number of vital points when opting to implement such a system.

  • Facilities that focus on direct deliveries can improve customer service by keeping their stores stocked more efficiently. Not only with this avoid a shortage of products, these operators will be able to offer products at a lower price because they will not have to pay for storage facilities. 
  • Truck loading facilities are less expensive to manage than a warehouse. Consolidating shipments can further reduce shipping costs so you can shrink your logistics budget.
  • Companies that focus on cargo redelivery can minimize packaging to encourage sustainability while ensuring that your products will arrive without becoming damaged.
  • You will be able to customize your shipping needs so that products may be easily tracked at every level of the shipping process to avoid having to track down parcels or hire additional people to count each package as it comes in. They can simply be scanned with a barcode on the packaging.
  • Companies using a truck reloading system do not need to make a large financial investment to set up their facilities. They can eliminate much of the brick and mortar establishments within their facility and focus on moving their product directly to their customers. Every move that is made to tighten the shipping network will help to save on the company’s bottom line. Some have saved as much as 40 percent of their costs over 4-5 years of using a cross docking system.

These systems are the most efficient when applied to companies that can manage same day or overnight shipping for products. High volume organizations often see neutral results, though improvements can be made for those that deal with perishable items or those that require constant temperature control.

Types of Cross Docking

Varying Cross Docking Systems

A direct shipping system can be used for a variety of methods to deliver goods to various vendors. A cross docking system can be used to eliminate unnecessary storage, but the setup of the system will vary based on the types of goods to be shipped and the location of the participating venues.

Types of Cross Docking

                                     

There are a number of docking scenarios that can be applied to warehouse management, based on the types of products which are being stored or shipped.

  • A manufacturing truck partial loading system will focus on receiving shipments of inbound or purchased products that a manufacturing outlet requires. Warehouses may receive sub-assemblies or the products themselves.
  • Opportunistic cross docking can be used for any transfers between warehouses with any goods. Warehouses may use partial loads logistic shipping to transfer these good from the receiving dock to the outbound shipping docks as demand requires.
  • Cargo reloading for distributors will consolidate incoming products from a variety of vendors. Pallets will often include a mix of parts such as components that are required to make a singular product.
  • Transportation docking will combine shipments from a variety of carriers and divide them amongst smaller carriers so they may reach the appropriate customers. This will vary based on the economies of scale included in a given company.

A cross dock system for a retail outlet will often focus on taking in products from a variety of vendors. These products will then be divided and shipped as necessary to meet the needs of individual venues within the company–as stock requires replenishing or new products become available.

Products that May be Used During Cross Docking

The length of time that can be dedicated to pallet storage will need to be varied, based on the nature of the products that are being shipped.

  • Promotional items will typically need to be shipped quite quickly to ensure they arrive in time for the given event.
  • Immediate truck reloading is often ideal for items that are already tagged, have a ticket included or are otherwise prepared for sale so they can be deposited directly at a retail establishment.
  • Semi trailer reloading may also be ideal for items that are prepackaged or pre-picked so they can move directly from the plant to the point of sale.
  • High quality goods that will not require an inspection before their sale are ideal for a crossdock shipping program because they can be taken directly to the point where they need to be.
  • This system is also designed for the better management of perishable items that will need to be shipped as quickly as possible. However, precautions will need to be taken to ensure these delicate items will not be damaged en route.

Items that may be found in a varying shipment schedule include staple items for a retail establishment. These items can be delivered regularly by the truckload or stored for long periods of time, based on the needs and growth of the company.

Evaluating your options when determining the proper setup for a crossdock system will be most appropriate for a given retail establishment.