When it comes to costs and warehousing, every organization has its own priorities and they need to consider and weigh up the disadvantages of implementing cross docking into the organization's supply chaise in order to make the right decision. There might seem to have advantages when cross-docking http://loadbearinglogistics.com/about-us/ especially because in logistics jargon, when an item sits, cost is entailed until it reaches its intended destination. In reality, there is very little or no handling or storage time considered when cross-docking a product from a suppliers or manufacturing plants distributing items directly to its customers or retain chain, and so less price is paid.
In cross-docking operation http://loadbearinglogistics.com/warehousing/ , much management attention, time, and planning is required to make it work effectively, and this is quite a disadvantage. In cross-docking, you don't have a warehouse to store items like what they do in warehousing, but instead they set up the cross docking terminal structures prior to its implementation, and these terminals are linked to semi-trailer trucks or railroad cars into outbound trucks, with no storage in between which will require time and capital. But to a cross-docking client, one can take the advantage of this facility that sees to it that before they offer anything, they already have a comfortable reliance that the suppliers would deliver those goods to the customer so that the cross-docking terminal will not break-up the entire supply chain like a crumbling domino simply because one item is missing.
Productivity of a supply chain becomes the more important factor for a cross-docking client since their priority is speed to grow their organization and achieve a competitive advantage. An organization's survival depends on customer satisfaction and thus this is especially true. Customers are won or lose by how efficient the supply chain is. Image the convenience of picking up exactly the right item that you have been looking for, and paying for it electronically over a website, but with the exception that it takes sometime before you can get hold of that item, while another company that sells exactly the same item and price, and allows you to have them much earlier than its counterpart. This is the sort of satisfaction that begins and ends with the organization's supply chain management.
Many companies have benefited from using cross-docking which includes reduction of labor costs as the products no longer requires picking and put away in the warehouse, reduction in the time in packing from production to the customer, which helps improve customer satisfaction, reduction in the need for warehouse space, as there is no requirements to store the products anyway.
Manufacturing cross-docking, distribution, transportation, retail, and opportunistic cross docking are the different types of cross docking; the last type being used in any warehouse by transferring a product directly from the goods receiving docks to the outbound shipping dock to meet a know demand.