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 fairly new concept in logistics. It intends to minimize costs by totally eliminating or reducing the essence of keeping goods in a warehouse before they are transported. In this model, commodities delivered in docking terminals or warehouses by a delivery truck are regrouped and arranged based on customer demand. The commodities are then moved and loaded for shipment to retail outlets or customers directly.
The most important aspect of this model of logistics is that there is no holding of goods at the warehouse. In case there is need to hold the goods at the warehouse, they are not held for more than 24 hours. Since storage of goods is an expensive and involving process, cross docking helps to cut these costs significantly.
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.
There are continuous improvements on the idea of cross docking. This is attributed to the invention of better software and technology. The initially used software only permitted pure cross-docking in that vehicles that the warehouse logistics system described had to be matched with the trucks that delivered the goods. This made cross docking of goods difficult should there be a change in the vehicles.
However, with better software today, business partners are able to communicate in real time and exchange information about changes in schedules, delivery trucks, and other factors. Web-based portals enable suppliers to create and transmit Advance Shipment Notification (ASN) information to customers as well as retail outlets. ASN notifications usually contain information such as type of products being shipped and estimated time of arrival.
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.
This model is also suitable for companies handling high volumes of shipments. The companies should also have substantial needs of transportation. Shipping would not be smooth or fast minus these two factors. Heavy investments on automation, outbound and inbound logistics, and visibility is also necessary in this concept.
Cross docking is a fairly new concept in logistics. It intends to minimize costs by totally eliminating or reducing the essence of keeping goods in a warehouse before they are transported. In this model, commodities delivered in docking terminals or warehouses by a delivery truck are regrouped and arranged based on customer demand. The commodities are then moved and loaded for shipment to retail outlets or customers directly.
The most important aspect of this model of logistics is that there is no holding of goods at the warehouse. In case there is need to hold the goods at the warehouse, they are not held for more than 24 hours. Since storage of goods is an expensive and involving process, cross docking helps to cut these costs significantly.
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.
There are continuous improvements on the idea of cross docking. This is attributed to the invention of better software and technology. The initially used software only permitted pure cross-docking in that vehicles that the warehouse logistics system described had to be matched with the trucks that delivered the goods. This made cross docking of goods difficult should there be a change in the vehicles.
However, with better software today, business partners are able to communicate in real time and exchange information about changes in schedules, delivery trucks, and other factors. Web-based portals enable suppliers to create and transmit Advance Shipment Notification (ASN) information to customers as well as retail outlets. ASN notifications usually contain information such as type of products being shipped and estimated time of arrival.
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.
This model is also suitable for companies handling high volumes of shipments. The companies should also have substantial needs of transportation. Shipping would not be smooth or fast minus these two factors. Heavy investments on automation, outbound and inbound logistics, and visibility is also necessary in this concept.
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