Delivery services have been more popular than ever. More Americans are receiving daily packages, from clothing to food to electronics. If you're involved in the e-commerce business, you may want to consider using cross docking for greater efficiency. Read on to learn more about this type of chain model.

What Is It?

According to NetSuite, cross-docking is a logistics technique that aims to accelerate goods delivery and increase supply chain efficiency. The goods are usually unloaded at a logistics facility. From there, they go directly to the outbound carrier vehicles. This streamlined process involves fewer people and steps.

Why Use It?

This type of process means goods can get from point A to point B much faster. Because of the streamlined process, there is little or sometimes no need to store a product. Companies have better control over their inventory as fewer people are handling the item once it leaves their facility. Therefore, they can ensure better quality control and more satisfied customers. Clients can save money on transportation costs, which reduces shipping fees for customers.

Who Should Use It?

Many companies are taking advantage of this transportation technique. E-commerce, retail, food and beverage, companies relying on raw materials, and delivery firms are among the main users of this type of shipping. Time is often of the essence as they may have perishable materials like produce that need to get to another location as quickly as possible. Retailers, especially during the holiday season, may need to quickly restock shelves to meet customer needs.

What Disadvantages Should Be Considered?

Products are moving quickly. Therefore, you must ensure everything is properly packed to reduce the possibility of damage. Without intermediate storage, there's also the chance of spoilage if things don't move fast enough. Stakeholders must ensure the process is properly planned and coordinated, as every aspect of the supply chain must be in perfect synchronization. If one part of the supply chain is late, it could cause a major hiccup.

The world is more interconnected than ever and people want their products as quickly as possible. If you're involved in product handling or delivery, cross docking may be for you. After all, it can help you remain in competition with other companies that are quickly getting items into the hands of customers. If you want to ensure you don't get left behind, contact our team at Rocky Mountain Rail & Storage LLC today about our cross docking services.