Which Logistics Option Is Right for You?
You and your team are analyzing your supply chain and struggling to figure how to cut costs. Two strategies to consider include crossdocking and transloading. Both strategies allow you to move your product to multiple endpoints separate from the one used for the inbound shipment.
Once a cargo ship docks at a terminal, the containers will be moved to a facility or warehouse, where they can be further transferred to another type of container or truck for distribution. Workers palletize the product before moving it into the trucks. The transloading process can lead to savings, but it also exposes the operation to some risk for delay, theft, damage, product corruption, etc.
In crossdocking, multiple suppliers consolidate their loads in a single location (the crossdock) to move the supplies to diverse locations, rapidly. Turnaround time is rapid – in general, less than 24 hours. When done right, crossdocking looks like an industrial ballet – a beautiful, rapid process that minimizes wastage and time-consuming processes. When done poorly, however – without electronic controls, accurate data, etc. – the inefficiencies can quickly stack up and cause delays and constraints in the chain.
Build redundancy into your system, so that if inbound or outbound trucks get delayed (e.g. because of an accident) you will have enough slack in the process to keep things on schedule.
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