Streamlining freight movement through cross-docking
How can a company minimize or eliminate waste while improving its supply chain? One solution is to install cross-dock facilities, sometimes known as “landing pads,” in place of warehouses and/or production sites.
Many businesses have adopted a lean manufacturing philosophy — and a lean supply chain that supports that philosophy — under intense pressure from global competitiveness and just-in-time (JIT) operations in the marketplace. An efficient line-haul/cross-docking end-user operation is key to identifying and creating such supply chains.
Cross-docking is the process of preparing inventory or items from incoming shipments for easy sorting at a terminal, warehouse, or landing pad for outbound shipments according to destination to end-user or distributor. The products are relocated from the incoming vehicle docking point to the outgoing vehicle docking point, line-haul cleared as a single shipment, and then delivered to the final consumer or distributor.
Many businesses have enhanced distribution and cross-docking by getting rid of their current cross-border manufacturing and warehouse facilities as they strive to be more efficient and cost-conscious. By maintaining the quality of products and lowering significant overhead costs like those associated with buildings, maintenance, and labour, they can provide seamless distribution to the end user. This procedure is advantageous to many firms because it gives complete control over client orders, the ability to invoice the orders, and control over end-of-month goal statistics.
Not only may inbound raw materials and supplier components be handled this way, but so can outgoing shipments. This creates a cost-effective and regulated distribution environment.
Lean manufacturing is supported, and JIT inventory is ensured by centrally cross-docked inbound raw materials and components that are subsequently line-hauled to their final destination.
The landing pad idea may be applied worldwide as well as locally in key geographic places. These facilities can fulfil a variety of functions, including storing short-term products for tender, functioning as a will-call station for a company’s field sales team or master distributor, and stowing away low-value goods for upcoming needs.
Organizations are being pushed to look outside the box in the current economy for not just efficient distribution techniques as a cost-effective means of functioning, but also to be more efficient and customer-focused on service demands and keep enough away from the competition.
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AMG Logistics is a Lagos-based TRACE certified logistics company. Our services include Freight Forwarding, Customs Clearance, Trucking, Distribution, and Warehousing within Nigeria.
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