Cross-docking is a kind of cargo delivery system in which reception and shipment take place directly through the warehouse. This is a fairly convenient procedure, in which there is no need to use additional warehouses. This procedure is quite profitable, because it can allow you to save on renting premises for long-term storage of goods. This is a new logistics system that helps small enterprises not to spend extra money, always get fresh products themselves, especially when it comes to food. In direct translation from English, this phrase means "direct delivery". Cross-docking is a type of additional service from an enterprise that is engaged in the manufacture of certain products, or a separate area of work of a company that is engaged exclusively in the provision of such services. The result of this kind of procedure is to provide outlets with products in the shortest possible time.
Service delivery system
The implementation of cross-docking services takes place in two stages. The first stage is the selection of all necessary materials or goods, the second is the conduct of the shipment of goods itself. When forming the delivery, the logisticians take into account all the customers to whom they must deliver the goods, and form the necessary route. After the formation of the route sheet, forwarders choose the shortest ways to deliver the goods. The cross-docking system, therefore, has two control methods. It also makes it possible, due to large volumes, to reduce the cost of delivery and the cost of goods for the end user.
System operation
The cross-docking scheme can work in several ways. Three options were thought out to carry out this procedure. The first option is called dual stream. With this scheme of work, all customers are selected to whom goods should be delivered on the same day, and the most suitable routes are selected. Thus, there may be a large number of shipping points on the delivery route. When creating such a scheme, the logistics service may also not carry out daily delivery, but to make it cheaper, do it several times a week. In addition, it is very beneficial to negotiate delivery days with customers. In this case, they will know in advance when they will be able to receive the goods, and order it, directly adapting to delivery. Thus, optimizing all these processes, the logistics company can transport large volumes of goods in a short time and at the same time at a cheaper price.
The second scheme by which such shipment can be carried out is a set of volume. When carrying out such a scheme, the transport will not move without a full load. This is more beneficial for large companies that need to transport large volumes of goods. In this case, the delivery of goods to the client will be carried out in the case when the required quantity is collected.
And the third option is the initial creation of routes that customers are informed about. Then you can ply the route, providing goods on certain days. Thus, cross-docking is a rather interesting and gaining popularity service sector.
A client can seek help from a specialized cross-docking company. Or, when concluding agreements with a product supplier, he can draw up a cross-docking service agreement with the same supplier, if he provides such an opportunity. The conclusion of such an agreement has a number of positive aspects. Thus, you will always receive fresh and all the products you need on time and at a better price.
Company Creation
If you plan to organize your own company, which will provide cross-docking services, this can be a good investment. But do not forget that you can carry out transportation in large batches, and there will be a need to deliver small batches. Thus, you will need a fleet with oversized cars. The more vehicles your company counts, the more likely it is to sign contracts with different companies.
The signing of agreements on the provision of such a service may be necessary both for the company producing the goods and for the company that needs to purchase products.
Shipment turret method
This service, like any other, can have many positive and negative points. When providing services there is such an opportunity as revolving shipment. This kind of resort in case of unforeseen circumstances, when it will be more profitable to carry out the shipment than to violate the terms of the contract. Such situations may arise due to the supplier's company.
When providing or using the service, it is necessary to register all the points in the contract, this will save you from unforeseen circumstances and preserve your relations with partners.