22 November, 2017 / Systems
In Cross Docking, a product is unloaded from a truck and immediately moved to another truck or train car in order to be distributed as quickly as possible. In this logistic system, the time in which the product remains in the company’s installation is kept as short as possible and this ensures that the shipment is much more dynamic than it would be when using other logistics systems.
Companies that rely on Cross Docking defend that the longer the products stay in their warehouse, the less value they provide to the company. The possibility that the value of the product depreciates is much greater when the product is in the warehouse since there may be changes in demand and there is a risk of obsolescence.
Another advantage of avoiding storing merchandise is that breakages, losses and thefts are prevented on a large scale. The longer a product remains in stock, the more danger there is that it will be lost or damaged and so it won’t be sent on time to the customer. In addition, avoiding storage reduces the costs of storage, reception and preparation.
Because of its efficiency and speed, Cross Docking is used especially in the press or in companies that sell fresh products. But more and more companies from different sectors are starting to rely on this logistics system to promise fast shipping (in less than 24 hours) to their consumers.