Cross-docking is a type of shipping service wherein raw, partial, or finished products that come from a supplier or manufacturer are distributed directly to the users. This includes both next level manufacturers and end consumers. There is little to no storage time. It is a logistics technique that is used in both the retail and trucking industries in order to consolidate shipments. While it eliminates the inventory-holding function of a warehouse, it still allows the company to serve its consolidation and shipping functions. Cross docking services allow businesses to transfer incoming shipments directly to outgoing trailers. It forgoes the storage in between and makes it so that shipments spend less than a day at the facility. In some instances, the shipment may only be in-house for less than an hour.
When to Use Cross Docking Services
Cross docking services are used in order to advance the supply chain and with items that need to be transported as quickly as possible, like food. In addition, it also helps when you have products that are ready for transportation and are already packaged and sorted products get to their destination faster and more efficiently. Cross docking services are also used to provide a central site wherein products can be sorted and combined so that businesses can save on transportation costs. Moreover, it is also used to break down large product loads into smaller loads for transportation so that delivery to the customer is made easier.
Reasons to Use Cross Docking Services
Often times businesses have shipping relationships with both a trucking or logistics partner, as well as with a parcel delivery system. Cross docking services reduce the need for multiple business relationships as well as the high costs incurred by smaller shipping systems as it enables you to do both your warehousing and expedited shipping with the same company. It also makes it so that the risk of damage your product is minimized because it cuts out at least two steps. Therefore, there are fewer operator errors because the product moves in an orderly fashion from incoming trucks directly to outgoing trucks and passes through a minimal amount of hands.
Difference Between Cross Docking Services and Transload Services
Cross docking services and transload services both include delivery to multiple destinations on a different truck or container than the inbound shipment. Additionally, they both consolidate products and ship directly to the final customer. There are also no additional costs or delays associated with storing the product at a warehouse and both allow for product customization including labeling and kitting at the facility. However, the one major difference is that transload services transfer container cargo from one load unit to another and the product is often palletized at the facility.
If you are interested in cross docking services and your business is in the El Paso area, contact Cordova Brokerage International. We have been shipping since 1994 and know how to help your business thrive!