Cross docks

All about Cross docks

Considerations for a Cross Docking System

Your cross dock facility will be the heart of your business, so you will need to give a great deal of thought into its organization. In general, economizing space will help you save money, but you will also need to ensure that you have enough space to manage the loads that are moving through.

Determining the Proper Layout

 If you are creating a truck reloading program from scratch it will likely be shallower than the system used to manage a group of warehouses and the additional resources necessary to manage your storage facilities.

  • Areas designated for cargo redelivery can be shorter, focusing on offering conveyors at 90 degree angles moving at high speeds to make transit to different delivery vehicles as efficient as possible, rather than having to provide additional space for long-term storage.
  • Your area used for truck loading can simply consist of a group of doors. The truck can back up to the building and load the given shipment.
  • If you will be managing your cargo reloading in a facility that will be seeing a high volume of goods, you may need to dedicate different points of your setup to managing each type of shipment: this ensures products are not lost or sent to the improper venue.
  • Whether or not each truckload of goods can be handled as it comes in or if it should be treated as a greater part of the day’s shipment will depend on how each shipment will be organized for delivery.

In general, the more distance you are putting between your delivery points, the more money you are costing your business. Your setup on the road and at your transfer facility should be designed as efficiently as possible to best manage your needs without having to waste time between shipments.

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.