Difference Between Cross docking and Warehousing

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Cross Docking and Warehousing

If you’re looking to optimize your shipping process and fulfillment services, you may want to consider a 3PL company that offers cross-docking services. There are many advantages to cross-docking that will save you money, simplify the shipping relationship, increase efficiency, and decrease the risk of the damaged product.

The goal of any logistics company is simple: to get the product from your business to a customer with minimum cost, delivery time, and zero damage. But many small businesses do not understand the basic difference between cross-docking services, warehousing, and shipping.
While the traditional warehousing process requires that a distributor has stocks of products on hand to ship to your customers, a cross-docking process makes use of best transportation and technology to create al JIT (just-in-time) shipping process.

What is Cross Docking

In cross-docking operations, products are unloaded from inbound carriers and directly loaded into outbound carriers. The cross-docking system does not require storing products in a warehouse. This option proves to be the most-effective solution for most businesses. For a cross-docking facility, to operate in a systematic and efficient manner, the planning and decisions involved need to be perfect.
A good 3PL (third-party logistics) offers cross-docking services to benefit your business and fasten up the shipping process while continuing to offer warehousing services when needed.

A cross-dock facility can help you to achieve goals like

• Reduce storage costs.
• Reduce inventory.
• Speedy deliveries.
• Increase fill rates.

What are the benefits of Cross-Docking Services?

Some of the immediate benefits of cross-docking include the following:

1. Cross docks process requires low-cost investment as compared to warehouse procedure

Cross-docking reduces the need for any long-term storage of products due to which the cost of picking and packing, along with inspection of the products minimizes.

2. Cross-docking is an efficient solution

The cross-docking process simplifies the loading and unloading process which in turn allows for quicker turnarounds. The cross-dock service speeds up the delivery process of products and thus improves customer satisfaction.

3. Cross-Docking warehouse reduces inventory management

Another benefit of cross-docking is that it reduces the time spent on inventory management. The time saved from the inventory can be allocated to other important tasks which in long run results in cost-saving through efficiency.

4. Decrease Risk To Product

Cross-docking reduces the risk of damage that might occur to your products during the shipping process. The cross-docking method cuts out at least two-step involving opportunity for operator errors: moving product into the warehouse and out of the warehouse.
Because the product moves from incoming trucks directly to outgoing trucks, it passes through a minimal amount of hands.

Looking for a cross-dock facility near you? Contact us to get a quick quote.