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 relatively new concept in logistics that aims at minimizing costs by reducing or totally eliminating the need for holding goods in warehouses before transportation. In this model, commodities that are delivered to a warehouse or docking terminal by delivery trucks are reorganized and sorted immediately depending on the demands of the customer. The goods are then routed and loaded to be shipped directly to customers or retail outlets.
The most essential feature of this logistics model is that goods are never held in a warehouse. If there is need of keeping the commodities in a warehouse, then they are not kept for over 24hrs. Because goods storage is an involving and expensive process, the costs are reduced significantly by cross docking.
This logistic model assists in reducing inventory management costs, storage requirements, warehouse space, and turnaround time for clients. This model has a high level of accuracy in information flow. As a fact, the accuracy of the information that flows between different stakeholders in the chain of supply determines the success of this logistic model.
The concept of cross-docking continues to be improved as better and better technology and software are invented. Previously, software that was in use only allowed pure cross-docking where trucks used to deliver goods must match the vehicle described in the logistics system at the warehouse. That meant that in case the vehicles were changed, it would be hard to cross-dock merchandise.
Presently, the availability of better software has enabled real time communication and the transfer of information concerning schedule changes, delivery trucks among others between businesses. Creation and transmission of Advance Shipment Notification (ASN) to retail outlets and clients has been enabled by web portals. Information such as the approximated arrival time and the type of shipped commodity is often contained in the ASN notification.
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.
Also, this logistic method is much better for companies that handle a high volume of shipments. The company should also have a substantial transportation needs. Without these two requirements, shipping will not be as fast or as smooth. The concept also requires a heavy investment in visibility, inbound and outbound logistics, and automation.
Cross docking is a relatively new concept in logistics that aims at minimizing costs by reducing or totally eliminating the need for holding goods in warehouses before transportation. In this model, commodities that are delivered to a warehouse or docking terminal by delivery trucks are reorganized and sorted immediately depending on the demands of the customer. The goods are then routed and loaded to be shipped directly to customers or retail outlets.
The most essential feature of this logistics model is that goods are never held in a warehouse. If there is need of keeping the commodities in a warehouse, then they are not kept for over 24hrs. Because goods storage is an involving and expensive process, the costs are reduced significantly by cross docking.
This logistic model assists in reducing inventory management costs, storage requirements, warehouse space, and turnaround time for clients. This model has a high level of accuracy in information flow. As a fact, the accuracy of the information that flows between different stakeholders in the chain of supply determines the success of this logistic model.
The concept of cross-docking continues to be improved as better and better technology and software are invented. Previously, software that was in use only allowed pure cross-docking where trucks used to deliver goods must match the vehicle described in the logistics system at the warehouse. That meant that in case the vehicles were changed, it would be hard to cross-dock merchandise.
Presently, the availability of better software has enabled real time communication and the transfer of information concerning schedule changes, delivery trucks among others between businesses. Creation and transmission of Advance Shipment Notification (ASN) to retail outlets and clients has been enabled by web portals. Information such as the approximated arrival time and the type of shipped commodity is often contained in the ASN notification.
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.
Also, this logistic method is much better for companies that handle a high volume of shipments. The company should also have a substantial transportation needs. Without these two requirements, shipping will not be as fast or as smooth. The concept also requires a heavy investment in visibility, inbound and outbound logistics, and automation.
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