Cross docking is a shipping practice defined by efficiency in labour and storage costs that result in faster delivery times. In a traditional docking scenario, incoming cargo comes into the building on one side, is moved and sorted in the middle, and then reloaded and dispatched from the other side. The purpose of cross docking is to consolidate the number of times cargo gets handled, allowing items to be unloaded and reloaded quickly.
Cross docking involves items being transported to a centralized docking station. From there, items get unloaded and then reloaded as quickly as possible. This reduces the need for warehouse space and limits storage costs. Most materials are immediately repacked and reloaded onto outbound transportation. Incoming cargo can come from a variety of transportation including truck or trailer, rail, or other standard means of shipping.
Implementing cross docking provides many benefits including:
Efficiency – Since there are fewer steps in the docking process due to the streamlined nature of cross docking, products move toward their final destinations faster.
Manageable Inventories – Because cargo moves in and out quickly, it is easy to keep track of cargo. Warehouses that employ cross docking services have less inventory. This on-demand shipping option makes it easier to meet the constantly fluctuating demands of consumers.
Reduced Handling Costs – Quicker turnaround of cargo means simplified warehouse tasks including manual transport, inspections, etc. Also, cross docking does not require dedicated warehouse space to hold cargo, further reducing the cost of docking.
Cross Docking services are useful for medium and large companies who are looking to save labour and storage costs and move good quickly. Cross docking is especially useful for companies transporting goods between the United States and Canada. For more information on this valuable service and how we can meet your cross docking needs, contact us.