Agility in delivery processes is able to increase customer satisfaction. However, in order for this to happen, the transportation system needs to rely on strategies and methodologies that raise the speed in sending the products. The good news is that with cross docking this is possible.
This is because it is a set of strategies that modifies traditional storage concepts, dispatching items sold by the company. In addition, this system directly affects transportation administration. Keep up with us to learn what is cross docking.
Cross docking concept
It is nothing more than a technique in which the item ordered by the consumer is dispatched to a distribution center or warehouse. There, the goods are shipped immediately to the buyer. That is, it is a system that permeates the entire distribution system of the business.
This method is widely used by e-commerce (virtual stores), which does not have a physical infrastructure suitable for hosting products. However, it is important to remember that it does not only reach the virtual environment but many physical stores are also adhering to the trend.
Types of cross docking
To know how cross docking works, it is very important to know what are the main types that are on the market. Here are three options your company can take:
In this technique, the products are received by the supplier and sent to the customer very quickly. It is worth remembering that this is the most traditional way to cross dock, as it seeks to avoid the accumulation of products in stock.
Also known as hybrid move, in this process, items are received and separated. Thus, part of them are forwarded to the end customer, while the other part is destined to stock. There, the products are combined with other items that will form complete orders.
The products are received and separated for distribution in FTL (Full Truck Load) loads, allowing the company to have a truck to transport your goods. It is usually used by the B2B (Business to Business) sector, as it provides faster delivery.
Advantages of cross docking
The main advantages of this process are the reduction in the handling of goods and the possibility of working with minimum or zero stocks. But don’t think they’re stopping there. See below the other benefits of cross docking:
Reduced inventory costs
With inventory eliminated, there is no need for a space to store items. However, it is important to have a picking area, which, in theory, does not correspond to stock. It is also interesting to have a place to receive products from suppliers.
The main advantage of this option is the reduced costs, since the system can be managed through features such as barcode or RFID tags, making it easier to identify each item.
As we saw earlier, cross docking logistics is basically a process that speeds up the delivery of products to the end customer. Without storage, the distribution center routes the received item with agility to the consumer.
This speed in delivery contributes to the increase in customer satisfaction, favoring loyalty and building a positive reputation for the company. With a good image, the costs of attracting new buyers tend to fall, as this contributes to attracting consumers.
Another advantage is the reduction or even elimination of problems involving lack of products for delivery to the customer. This is because the item is ordered only after the consumer’s order. Thus, the company will depend directly on the supplier, who, most of the time, is also the producer.
Considering that the supplier is responsible for sending the items according to demand, the concern to keep products in stock ceases to exist. In this technique, the predictions of rigorous demands is another point left aside, favoring the commercialization of “seasonal” products.
Once you understand what cross docking is in logistics, the next step is to know what the right techniques are for implementing the system. For this, it is essential to synchronize strategies and actions that involve the entire supply chain.
Bet on a management system
The ideal is to have a management system with a logistic module. This is because this solution enables a better structure of the data. With this software, you can record information about the loads received, their destination, the number of packets, and more.
This management also organizes information from various cross docking and transit point sectors, such as the procurement and transportation department.
Invest in a distribution center
Relying on a distribution center is critical for the system to function properly. After all, it is in this place that the products are received, reorganized and forwarded to customers. For this, it is possible to count on a partner who provides a space.
Another alternative is to bet on specialized carriers that have their own distribution center. In this case, it is worth verifying that they work with this type of follow-up.
Did you like the content about cross docking and want to stay on top of all the news of logistics? Continue browsing the Polyexcel blog. Here, we have full articles on stationed inventory, supply chain, reverse logistics and more. Enjoy!