Short Course on Businesses – Covering The Basics

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How Cross Docking is related to Customer Satisfaction When it comes to costs and warehousing, every organization has its own priorities and they need to consider and weigh up the disadvantages of implementing cross docking into the organization’s supply chaise in order to make the right decision. Cross-docking might sound advantageous in reference to the fact that in logistics jargon, anytime an item sits, in-between its intended destination is cost. However, in cross -docking, 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. We can look at it this way, that when cross docking is implemented or before it is implemented, there is a need to set up the cross docking terminal structures and link them to semi-trailer trucks or railroad cars into outbound trucks with little or no storage in between, and this would require time and capital unlike warehousing where, the job is to establish a warehouse, advertise the 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. For a cross-docking client, their priority is speed to grow their organization and achieve a competitive advantage, which is why the productivity of a supply chain becomes the more important factor. An organization’s survival depends on customer satisfaction and thus this is especially true. Customers are won or lose by how efficient the supply chain is. Two companies selling the same item with the same price, but differing in time that the customer can pick up the item will both provide convenience to a customer but the one that allow the customer to have them much earlier than the other will give the customer more satisfaction. This type of customer satisfaction has its grounds on the organization’s supply chain management.
Doing Docks The Right Way
With cross-docking a lot of companies have benefited from reduction of labor costs because it does not need to be packed and stored, reduction in time in packing from production to customer, which aids customer satisfaction, and reduction in the need for warehouse space, since there is nothing to be stored.
What You Should Know About Warehouses This Year
Types of cross-docking includes manufacturing cross-docking, distribution, transportation, retail, and opportunistic cross-docking where it can be used in any warehouse, transferring a product directly from the goods receiving dock to the outbound shipping dock to meet a known demand.