Profitability and business efficiency are two very important concepts that every business tries to achieve. Businesses do everything in their power to cut down on their costs while maximizing profitability. The level at which businesses succeed at doing this usually varies from one business and location to another. Efforts directed at cutting costs touch on every aspect of business, including logistics. In logistics, the concept of cross docking has been very instrumental in cutting costs. When in need of Cross Docking Ontario should be visited.
Cross docking is a comparatively emergent concept whose goal is cutting down costs through reducing or completely removing the need to store goods in a warehouse prior to transportation. In this strategy, items that are brought to a docking terminal or warehouse using delivery trucks are immediately sorted and reorganized with respect to the wants of the client. Routing and loading of the commodities that need direct shipping to retail outlets or customers is done as well.
There being no holding of the goods in warehouses is the most critical element of this strategy. Should there be a reason to store goods in warehouses, they do not stay there for over 24 hours. Because the process of storing goods is demanding and costly, cross docking is efficient at scaling down these costs.
This logistical strategy assists in reduction on the cost of inventory management, turnaround time for customers, warehouse storage and space demands. The accuracy level of the flow of information in this model must be very high. The workability of this model is in fact determined by the accuracy through which information can low from one supply chain stakeholder to the other.
Software and technological developments continue to make better improvements on the concept of cross docking. Initially, the software used only allowed for pure cross docking whereby the trucks that are described in the warehouse logistic system must be the same ones to make pickups. This means that if there was any alteration in the vehicle, then cross docking the goods would be difficult.
However, with better software today, business partners are able to communicate in real time and exchange information about changes in schedules, delivery trucks, and other factors. Web-based portals enable suppliers to create and transmit Advance Shipment Notification (ASN) information to customers as well as retail outlets. ASN notifications usually contain information such as type of products being shipped and estimated time of arrival.
The concept of cross docking seems to have become a universal one, with every other industry and company adopting it. However, it is important to note that not all industries benefit equally from this method. Some industries are simply more suited for cross-docking than others. Some of these industries include foods, beverages, perishable goods, raw materials, already packed and sorted products and parcels. Others include inbound supplier components.
Furthermore, this method of logistics best serves firms that deal with shipments of high volume. Additionally, the firm needs to have significant needs of transportation. Shipping may not be smooth, nor fast if these two factors lack. Heavy investment in visibility, automation, and inbound and outbound logistics must first be done.
Cross docking is a comparatively emergent concept whose goal is cutting down costs through reducing or completely removing the need to store goods in a warehouse prior to transportation. In this strategy, items that are brought to a docking terminal or warehouse using delivery trucks are immediately sorted and reorganized with respect to the wants of the client. Routing and loading of the commodities that need direct shipping to retail outlets or customers is done as well.
There being no holding of the goods in warehouses is the most critical element of this strategy. Should there be a reason to store goods in warehouses, they do not stay there for over 24 hours. Because the process of storing goods is demanding and costly, cross docking is efficient at scaling down these costs.
This logistical strategy assists in reduction on the cost of inventory management, turnaround time for customers, warehouse storage and space demands. The accuracy level of the flow of information in this model must be very high. The workability of this model is in fact determined by the accuracy through which information can low from one supply chain stakeholder to the other.
Software and technological developments continue to make better improvements on the concept of cross docking. Initially, the software used only allowed for pure cross docking whereby the trucks that are described in the warehouse logistic system must be the same ones to make pickups. This means that if there was any alteration in the vehicle, then cross docking the goods would be difficult.
However, with better software today, business partners are able to communicate in real time and exchange information about changes in schedules, delivery trucks, and other factors. Web-based portals enable suppliers to create and transmit Advance Shipment Notification (ASN) information to customers as well as retail outlets. ASN notifications usually contain information such as type of products being shipped and estimated time of arrival.
The concept of cross docking seems to have become a universal one, with every other industry and company adopting it. However, it is important to note that not all industries benefit equally from this method. Some industries are simply more suited for cross-docking than others. Some of these industries include foods, beverages, perishable goods, raw materials, already packed and sorted products and parcels. Others include inbound supplier components.
Furthermore, this method of logistics best serves firms that deal with shipments of high volume. Additionally, the firm needs to have significant needs of transportation. Shipping may not be smooth, nor fast if these two factors lack. Heavy investment in visibility, automation, and inbound and outbound logistics must first be done.
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