What Is Cross-Docking In 3PL And Why Should You Need One?

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So, what is cross-docking in 3PL (third-party logistics) AND why should your business need one?

When working in the logistics industry, it’s important to keep every process fast and efficient.

This means you will be providing your customers and clients with the best solution while ensuring the operating costs are kept as low as possible.

So, in this article, we’ll be covering what cross-docking is and how it helps to improve productivity for your business’s logistics.

What is cross-docking?

The term, cross-docking, is a logistical technique in which goods are taken from the original mode of transport such as trucks, ships, and airplanes, then immediately loaded back onto another mode of transport to reach their final destination.

Sometimes, there are products that are managed in the warehouses but the aim is to transport the goods with the least amount of storage and handling possible.

And for many businesses, cross-docking makes their warehousing and distribution a lot easier and efficient.

Previously, businesses had to rely on several suppliers to deliver each product to their retail location or warehouses, however, with the implementation of cross-docking, the goods are taken to the central location instead.

Then, at the distribution center, they receive the products, sort them, and ship them wherever they need to go.

This gives them much more control over which locations need to get which products.

When should you need cross-docking?

Cross-docking will help to speed up the supply chain for a variety of specific products.

This method will help unpreserved or temperature-controlled goods such as food, health products, and beauty products that need to be transported in a short period of time.

Also, transporting pre-packaged and sorted goods to consumers can become quicker and more efficient via an organized cross-docking approach.

Why cross-docking? What are its benefits?

Cross-docking is used in many situations because it brings many benefits for a business and cross-docking in warehousing can be considered a fulfillment solution, particularly for e-commerce businesses.

Here are some of the benefits and advantages of cross-docking:

Efficiency:
Quicker turnarounds can be achieved by simplifying the loading process and for businesses trying to keep up with the rise of consumer demands for faster and reliable delivery.

Cost-Effectiveness:
Cross-docking eliminates the need for any long-term storage. The reduction in long-term storage minimizes the cost of picking, packing, and the inspection of the goods.

Reduced Inventory Management:
Cross-docking reduces the overall time spent managing inventory. Less time spent dealing with inventory can mean more time for other important tasks which saves money through efficacy in the long run.

Final words

3PL companies are often used to assist in the implementation and management of cross-docking.

There are experts at receiving, sorting, and shipping goods from their centralized warehouses.

All of the business’s goods will be shipped to the 3PL’s location, where they will be organized, picked and packed, sorted, and delivered straight to the consumers.

This is a very cost-effective way to manage receiving and delivery especially for small to medium-sized businesses that may not wish to rent a full warehousing facility.

So, is your business on the hunt for a professional 3PL partner?

Contact Logos Logistics today and see how our cross-docking services can benefit and help you streamline your supply chain.

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