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Why Cross Docking is Value adding

Cross-docking services can be said as the ability to receive products and then ship to the various destination without first storing in a warehouse. There are so many advantages that can be associated with the service especially when it is implemented in the right way. The article will highlight some of the most important benefits of using this service. The businesses benefit so much from the reduced costs in handling and operational charges.

Companies are experiencing great savings because of the money that used to be paid for storage which no longer needs to be paid with the express transportation. The other change that many of the companies that are using the service experience is in the reduced storage of inventory. The companies are saying that when they realize they no longer need the inventories. The other cost that is so much reduced by the use of this service is in the cost of warehouse. Now that products can be shipped directly is has become unnecessary to pay for the warehouses.

By consolidating LTL shipments into full loads many companies have experienced reduced fuel costs. There is also a faster and streamlined movement of products from the manufacturer to the distributor and then to the consumer. You need to make sure before you use the cross-docking services, the potential partners all have adequate storage capacities. They should also confirm that they have adequate transport fleet and adequate IT system to operate the cross-docking services.

Another thing you will also notice is that some of the products to be moved are more suited to the kind of service that others. Some of the products to be transported must be transported immediately, therefore, they need this kind of service more than others. Some of the common ones that should be given priority are perishable goods. Others that can be shipped directly are high-quality items that do not require quality inspection before they are shipped. When there are goods that are already pre-tagged and they are ready to be sold to the customers, this is the right service that should be given to them. Direct shipping will also apply to promotional items that are being launched. You will also be better off using the method on customers’ orders., pre-packed items that could be from another plant.When there is a flow of communication between the suppliers, distributors and the points of sale then the process can be very successful. That way you will be sure the goods are flowing smoothly without any delay. The perishable goods can be transported immediately.

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