Cross Dock Operations and Warehousing – Know the Difference

The objective of having an effective logistics is to get your products deliver to your customers quickly, at low and without any damage. There are multiple logistics solutions that enable you to achieve this objective – cross dock operations, warehousing and shipping. However, many businesses do not understand the difference between these.

What are Cross Dock Operations?

Cross Docking - ProConnect

Traditional warehousing requires distributors to have an inventory of products that can be shipped to customers, whereas cross dock operations uses technology and business system integration to carry out just in time, aka JIT shipping process. Our previous article gives more information on the concepts of cross docking.

Usually, shipments are first received through inbound operations, stored in a warehouse, and shipped out upon receiving orders. In cross dock operations, warehouses may move cargo directly from inbound to outbound, without any long-term storage option.

Benefits of Cross Docking

Cross dock operations have proved to be beneficial for many businesses; and many others are opting for cross docking operations due to its advantages. Below, we have listed some of them –

Cost reduction –

Inventory storage requires square feet space in a warehouse. Every time you stock up on long-term inventory, you rent space from your logistics partner. There are situations and operations where this may be absolutely necessary, due to timeliness, large inventory returns, expected increased demand, etc., but these costs can often be avoided when you have the option to ship the products once they are ordered – this is where cross docking can be used to make faster deliveries.

Have One Solid Logistics Partner

Many businesses have established relationships with multiple delivery or logistics partners, but end up using courier systems also. With cross dock operations, businesses can reduce the need for multiple logistics partners and relationships and reduce higher cost incurred from courier or parcel delivery partners. When you partner with one logistics companies, for all your needs, you also get added benefits, services and are free from back and forth from multiple partners.

Reduces Product Damage –

Due to faster deliveries, cross dock operations may seem to involve the risk of damage to your products, but in reality it is not so. Risk of damage increases when more number of people or middlemen are involved, however, cross-docking reduces the number of touchpoints, example inbound and outbound handling of your products. In cross dock operations, products are directly, almost directly placed from inbound trucks to outbound trucks, thus involving lesser processes and quicker turnaround times.

Save Time

Many of the shipping processes are time consuming. Preparing materials for shipping, packing materials, delivering materials to carriers, predicting deliveries, and following up with customers are all steps that require time and attention. Cross-docking, when added to other services in the modern shipping industry such as packaging and repackaging, warehousing, pickup and delivery, removes all stress and time issues from your business.

Faster Shipping Timeline

The biggest advantage of the cross dock operations is that it can reduce the time it takes to ship goods. When a product is ordered, you prepare it and ship it directly to the warehouse. Once it reaches the desginated warehouse facility, it is quickly transferred from the inbound truck to the outbound truck and shipped to the customer.

There are many benefits to cross dock operations, above are some points that top the list. When you partner with a logistics company that offers full-service, end-to-end logistics solutions, you can achieve efficiency in your operations. Your logistics partner can take care of all operations from warehousing to packaging, repackaging, shipping, end customer deliveries and lots more.

ProConnect Integrated Logistics for Cross Dock Operations

If you think cross docking could be helpful and prove to be efficient for your shipping operations, talk to us. We help companies across several industries with their logistics needs, including cross-docking. We possess the experience and the expertise required that can help you reduce costs, achieve faster turnaround time, implement more efficiency, and offer strong partnership.

Still have questions? Looking for a quote? Contact us today.

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