Every organization has their priorities in terms of costs, warehouse and the disadvantages of implementing cross-docking into the organization’s supply chain,both needs to be considered and weighted up in order to make the right decision. When using logistics jargon, there is much advantage to cross docking since when an item is sitting or stored for a certain destination, there is a high cost to be paid before it reaches its intended destination. However, in Cross Docking Toronto, a product’s from a supplier or manufacturing plant are distributed directly to a customer or retail chain with marginal to no handling or storage time, therefore less price is paid.
The disadvantage of a cross-docking operator is that it requires much management attention, time, and planning which are all necessary to make it work effectively. In other words, prior to its implementation, setting up the cross docking terminal structures and linking them to semi-trailer trucks or railroad cars into outbound trucks with little or no storage in between would already require time and capital not similar to warehousing where for the most part, the job is simply to establish a warehouse, advertise the Warehouse Toronto facility and maintain a good account of its inventory. A cross-docking client can take advantage of this facility since they have a comfortable reliance that suppliers would deliver their goods to the customer without breaking up the entire supply chain through cross-docking terminals.
Productivity of a supply chain becomes the more important factor for a cross-docking client since their priority is speed to grow their organization and achieve a competitive advantage. This is especially true these days since customer satisfaction weighs heavily on an organizations survival. Customers are won or lose by how efficient the supply chain is. Image the convenience of picking up exactly the right item that you have been looking for, and paying for it electronically over a website, but with the exception that it takes sometime before you can get hold of that item, while another company that sells exactly the same item and price, and allows you to have them much earlier than its counterpart. This type of customer satisfaction has its grounds on the organization’s supply chain management.
A lot of companies are now using cross-docking which reduces labor costs because the products no longer requires packing and putting away in warehouses, there is reduction of time in packing from production to customer, and this greatly helps to improve customer satisfaction, and it reduces the need for warehouse space since the products are not required to be stored.
Manufacturing cross-docking, distribution, transportation, retail, and opportunistic cross docking are the different types of cross docking; the last type being used in any warehouse by transferring a product directly from the goods receiving docks to the outbound shipping dock to meet a know demand.