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.