WAREHOUSE LOGISTICS- HOW DOES CROSS - DOCKING WORKS

 Cross docking is a system that virtually eliminates the need to hold inventory.

Products are delivered to a warehouse where they are sorted and prepared for shipment immediately – usually being reloaded onto other trucks stationed at the same warehouse

Cross-docking usually occurs at a warehouse or distribution docking terminal, where trucks can continuously come and go. There are often two sides for inbound and outbound shipments, with a dedicated middle area to sort and pack inventory. AFM Logistics is  one of the best Import And Export Agent In India dedicated to providing our customers comprehensive and scalable solutions with custom warehousing options to fit your needs.

Simply put, shipments are received in the inbound dock from a truck, ship, or airplane. They are then moved to the middle area for sorting and inspection. Once completed, they are directly put on the outbound dock to be shipped off to customers. Most shipments typically spend less than 24 hours in a cross-dock before being sent to their final destinations. 

.While cross docking does expedite the shipment process, you shouldn’t skip critical steps like quality control and inventory tracking. It still requires a lot of careful planning and handling.

Unlike traditional warehousing, you do not typically handle or store any product.

 

 

ADVANTAGES OF CROSS DOCKING

• Storage space requirements can be reduced, leading to overall savings in costs. Precious warehouse space can be utilized for products that simply need to be stored before they can be sold or sent to the customers.
• Storing, handling, counting, securing, and insuring inventory costs money; you also lose money when products get damaged, lost, or stolen. Cross-docking eliminates these expenses as the goods are immediately sent to outbound transport with minimal holding time. The reduction in cost is one of the biggest benefits of cross docking.
• As they are hardly stored and handled minimally at the warehouse, there is very little risk of your products getting spoilt or damaged, leading to better quality products. Basically, your products are taken from one truck and put into another, with no stock being stored for a certain amount of time. The only time the products will spend at your cross docking warehouse is when they are waiting for the outbound truck to arrive so they can be loaded on it.

• As the goods are immediately sent out once received, it significantly reduces the time taken for delivery of those items to the customer. Cross docking ensures a speedy distribution process, and higher efficiency and significantly reduces lead time.
• Labor costs are reduced as there is no longer any need to pick and put away stock; this means you need fewer workers at the warehouse.
• The cross docking process eliminates the worry about the dead stock; as your products are immediately scanned and shipped, there is no danger of them becoming obsolete; you also don’t have to worry about re-ordering, or items getting stocked out.
• As customers receive their orders quickly, you can ensure higher customer satisfaction; this, in turn, helps to boost your reputation for quick deliveries.
• When your loading and unloading systems are simplified and streamlined, and you achieve quick movement of goods from inbound trucks to outbound, you can ensure speedy shipments, giving you an edge over your competitors.

 

DISADVANTAGES OF CROSS DOCKING

Like everything else, while cross-docking offers several benefits, it does have its drawbacks. Let’s see what they are:

• The preparation can be very time-consuming; it has to be planned and executed meticulously to ensure its success. Otherwise, you may have scheduling conflicts on your hands and have accidents because you have no proper systems in place for warehouse management. Ideally, in the cross docking process, shipments should not spend over 24 hours in the cross-docking warehouse or distribution facility.
• It takes a pretty hefty investment to set up a cross docking operation; you need dock terminals, and a sizeable fleet of trucks and other transport vehicles to handle the cross docking operation. You will also need space to park your vehicles when they are not running.
• Cross-docking is a very precise operation and it requires quick, efficient workers, smooth and seamless workflows, and sophisticated technology for it to be successful. It may be necessary to have an EDI or electronic data interchange for streamlining the purchase process and supply chain management software to efficiently track your products from suppliers to your docks right up to your customers.
• You need to purchase forklifts, conveyor belts, pallet trucks, and other equipment to ensure smooth and fast operations.

• Multiple deliveries are often handled in a single day, and therefore it is vital that all the goods have to be unloaded from the inbound trucks and loaded onto the outbound trucks swiftly, within tight time schedules. If you are not able to do that, it will lead to congestion in the dock, and may even cause some of the goods to get damaged, stolen, or lost.
• It is not suitable for industries with low inventory turnover rates; examples – furniture, office stationery, etc.
• Your suppliers may not always be able to comply with the stringent deadlines that cross docking necessitates. There is no room for mistakes in either lead times or product quality; therefore you need to ensure that your suppliers are reliable and capable of meeting your requirements.

 

TRUST YOUR FULFILLMENT LOGISTICS WITH AFM LOGISTICS

If you want to maximize your fulfillment operations, it’s important to implement automation for real-time control and visibility over inventory, orders, shipments, and returns. 

AFM Logistics is a 3PL that offers premium fulfillment services, a growing logistics network, and a best-in-class automation and technology for online brands that serve the end customer and businesses.

AFM Logistics’s range of third-party logistics solutions include:

• DTC fulfillment
• B2B ecommerce
• Kitting and assembly,
• Warehouse picking and packing
• Inventory management
• Returns management

Additionally, AFM Logistics’s end-to-end managed freight and inventory distribution program,  works alongside Flexport’s Flow Direct LCL shipping program in order to offer reduced time-in-transit, lower freight costs, and distributed inventory more strategically across AFM Logistics fulfillment centers.

With AFM Logistics, you can get products to your customers faster, increase revenue, and forecast with greater precision.

AFM Logistics offers cross-docking solution at select fulfillment centers available upon request by assisting you in sending inventory to another AFM Logistics fulfillment center, as well as other locations if we have the labels ahead of time.