Cross Docking: A New Efficient Way of Order Fulfillment

It is a known fact that there are usually middlemen involved in the process of the product you ordered online actually reaching you. Nowadays, however, there is a new concept that involves little to no middlemen in this process. It is called a cross docking warehouse.

The Cross Docking Process

Under this procedure, the factory or business which produces goods delivers them directly to the customer. Overall, this way of fulfilling orders involves much less labor cost and lessens the storage requirements of the merchandise. So, it is beneficial to the manufacturer. It also considerably hastens the speed of delivery of ordered products, making it ideal for improved customer relations too.

The Types of Cross Docking

Let us look at how cross docking can help you in your business. However, before doing so, let us go into details of cross docking – its various types. For instance, different production companies employ different methods. This solely depends upon what best suits the merchandise they are shipping away.
Here are a few more types.

Manufacturing Cross Docking:

In this method, you purchase the raw materials and other components required to manufacture a finished good. Then, you sub-assemble these items in a warehouse as part of the production order.

Distributor Cross Docking:

Different vendors and mediators send a group of items under this procedure. You then group these items and ship them to the customer as one unit after receiving the last item on the list.

Transportation Cross Docking:

In this, you bring the shipments from different transportation carriers (mostly the smaller players and less-than-truckload – LTL industries) together and then dispatch further ahead to introduce economies of scale in the process of delivery.
Retail Cross Docking:
In this process, you will directly send the products via different vendors. Further, you sort these products and deliver with the help of outbound trucks to the various retail stores.

Opportunistic Cross Docking:

This simply refers to transporting an item from the receiving dock to the outbound dock from where it goes directly to its end-user.

Benefits of Cross Docking Warehouse

Cross docking comes with numerous benefits. Firstly, you will find reduced cost of labor as you would not need a special cross docking warehouse. There is also a decrease in the transit time as you would not need a special warehouse. This makes cross docking efficient and inexpensive.
Feel like joining the cross docking bandwagon? Give Spectra a call today and explain the requirements of cross docking warehouse to receive the best range of services.

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