By eliminating the put-away process, companies reduce 3PL warehouse requirements and inventory level when using cross docking.  In addition, these firms reap the benefits of consolidating their freight.  This lowers transportation costs while improving product availability.

Successful implementation is dependent on continuous communication between all members of the supply chain including: manufacturers, wholesalers, distributors, and retailers. This can and should ideally include logistics software integration between all members of the supply chain, including the ability to track inventory in transit.

The savings in time and money from the use of this procedure can be significant depending on a variety of factors.  These include the handling methods used, the complexity of loads, freight costs for the commodities being shipped, the costs associated with inventory in transit, and the customer/supplier geography.  These factors can be particularly important when a client has numerous branch locations, distribution centers, and/or retail locations.

Cross docking services save companies time and money.  Cross docking service are defined as having the ability to receive the product and immediately ship it out without putting it into a 3PL warehouse.  When implemented properly this practice has many advantages, especially in the areas of lowering costs and saving time.

5 Key Advantages of Cross Docking Include:

• Reduced handling and operating cost
• Less storage of inventory
• Fewer warehousing costs
• Reduced fuel costs from consolidating LTL shipments into FTL
• Streamlined supply chain resulting in products moving quicker from manufacturers to distributors to consumers

Before initiating the use of cross docking services, you should be sure that all potential partners have the necessary storage capacities.  In addition, partners should also have an adequate transport fleet to operate cross docking as well as an adequate IT system.

Some products are better suited to cross docking other than others.  Here is a short list of six types of materials that are well suited to this procedure:

• Perishable goods requiring immediate shipment
• High quality items that do not require quality inspections during the receiving process
• Products that are pre-tagged, pre-ticketed, and ready for sale to the customer
• Promotional items and items being launched
• Staple retail products with a constant demand and/or low demand variance
• Pre-picked, pre-packaged customer orders from another production plant or warehouse

Cross docking has continued to increase in popularity over the years.  A survey that was recently conducted showed an increase of 16.5% over the last three years with 68.5% of the companies surveyed are using it within their supply chain.

Three typical scenarios where cross docking is well suited:

• Deconsolidation: Where large shipments such as railcar lots are broken up into smaller lots for ease of delivery
• Consolidation: Where a number of smaller shipments are combined into one larger shipment for more economical transport
• Hub and Spoke: Where good are transported to one central location and then sorted for delivery to various other destinations

With its flexibility, efficiency, and ability to accommodate unpredictable customer demand, cross docking is seen as a winning strategy.  Allowing companies to adapt to the current economic environment and business conditions we face in 2017 and beyond.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

In the world of trucking and logistics, cross docking is the practice of unloading goods from an inbound trailer and loading these goods directly onto an outbound trailer.  Trucking companies complete this process without sorting the goods in a warehouse between receiving and shipping.

There are many reasons for this type of transfer including:

• Sorting goods intended for multiple destinations
• Combing goods arriving from multiple point of origin for transport to a single destination or several destinations along one route
• Transferring goods from one transport to another (example: switching between large a large trailer to a smaller one

Cross docking procedures were initially developed in the 30’s by the U.S. trucking industry and have remained in continuous use in the LTL (less than truckload) segment of the trucking industry to this day.  Cross docking infiltrated the retail market in the 80’s when Wal-Mart pioneered its use.

In LTL trucking, cross dock operations often involve transferring goods from one vehicle directly into another with no warehousing of those goods.  This process can be used to split tractor trailer loads into multiple smaller vehicles or vice versa.  Cross dock operations may utilize staging areas adjacent to loading docks in a warehouse.

Inbound goods can be sorted, consolidated, and held until the outbound shipment is completely ready to ship.  The goods are not really received to be put into a warehouse and put away but rather they are held in a staging area to await transfer from the inbound loading dock to the outbound loading dock.

Pros of Cross Docking:

• Streamlines the supply chain from the origination point to the final destination/end user thus resulting in products getting from the manufacturer to the distributor to the customer quickly
• Decreases handling and operating costs
• Reduces the storage of inventory
• Lessens warehousing costs
• Reduction of fuel costs when consolidating LTL shipments into full loads
• In the retail sector it may increase available retail space in brick and mortar stores

Cons of Cross Docking:

• Some potential partners may not have necessary storage for staging areas needed during cross docking operations
• Other potential partners may not have a large enough trucking fleet to implement cross docking procedures
• Requires sufficient IT systems to implement
• Additional freight handling during transit can increase the potential for damaged cargo

In our next installment we will continue our discussion on cross docking and it’s affect on trucking companies and third party freight shipping companies.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.

When you are looking for a trucking company to provide logistic services to your company it can be super easy to overlook important aspects such as on-time service and customer service only focusing on the expense.  Within your supply chain there are a number of places to seek out a solid bargain but your freight carrier is one area where your budget is just one of many factors to consider.

A side by side comparison of numbers alone will not offer you an accurate enough picture on the services you should expect from a freight carrier.  Although a quote is a place to start it is important to look into a number of aspects especially if looking to build a viable relationship long term.

There are a number of items to address before you begin working with a trucking company as they provide an integral service to your business.  It is important that a level of communication and expectations are defined before services begin to avoid confusion.  One important aspect to consider is how different issues will be handled.  What will happen if a customer calls and their shipment includes several items that are damaged?  How are issues with drivers handled?  The last thing that you want is to receive a call from a disgruntled client.  An issue arising from outside of your control can be incredibly frustrating especially when it results in a loss of future business.

When it comes to selecting a full service transportation company it is important to find a company that respects your shipments, customers, and service values while offering competitive rates.   You should be able to depend on their services; when you pass off your shipment you should fully expect your shipment to get to its destination on time and without being damage.  Each shipment should be a priority.  Caring about your shipment shows that they care about you and your customers.

When looking for trucking companies it is also important to work with a company that is going to be able to meet all of your needs from just in time shipments to dedicated truckloads.  Along with extra services that may be needed including cross-docking and warehousing.  A company that provides a number of essential freight services is better able to meet the demand of their customers meaning you can meet the demands of yours.

You will be satisfied when your customers are satisfied which will result in a positive return on investment for all three parties.  This can all be accomplished by choosing a trucking company to transport your freight whose mission is in sync with yours.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at www.matrixtransportation.com  To contact one of our trucking experts call toll free 888.896.2405 today.