What is the Difference Between 3PL Cross Docking and Standard Warehousing?

What is the Difference Between 3PL Cross Docking and Standard Warehousing?

The primary goal of any shipping process is to deliver the consignment from a business to the customers with little to no damage, reduced cost, and as quickly as possible. For any business that is new to the world of logistics can be easily overwhelmed with the type of warehousing and logistics services offered to them. One such service is 3Pl cross docking. Many businesses aren’t familiar with what it is and easily confuse it for your regular warehousing. But this is not the case. There is a huge difference between cross docking and traditional warehousing services.

This guide will help you learn about the difference between cross docking and traditional shipping and warehousing services.

What is Cross Docking?

Cross docking is the process of direct transfer of goods from incoming transport to outbound transport. It works in a way that the goods or product that needs to be transported doesn’t wait to be stored. There is little to no storage and handling required. The products are unloaded from the incoming truck and loaded into the outbound truck, which is completely opposite of what you see in warehousing and shipping services.

In traditional warehousing, the goods are unloaded and securely stored in the warehouse. The goods remain there for a few days or even weeks or months until the move is finalized. The longer your products rest in the warehouse, the higher will be cost and handling charges.

This is the reason why more and more businesses have started using the services of 3Pl cross docking providers to efficiently deliver the goods to the customers on time without paying any extra penny.

Here is what you need to know.

1. Reduced Costs

Every time you are using the warehouse for long-term inventory storage, you will be renting square footage from your 3PL partner. While there are times when renting out space becomes an absolute necessity, often, it can be avoided through cross docking by shipping the items right away. This is especially beneficial when you want to send the items right away after the customer orders it. Traditional warehousing, on the other hand, works in the interest of timelines, anticipated demand spikes, and large inventory manufacturing runs. If you are in a hurry and don’t have any time to waste, then the cross docking option works the best.

2. Decrease Risk to Product

You may think that because of its increased speed, there is always a higher risk of the product being damaged during the process. Well, it is not what you think. With cross docking, you are eliminating the processes that involve human assistance. Wherever humans are involved, errors occur. Moving products into the storage and out when there is an order – these two steps are enough to make the product vulnerable to damage. Cross docking reduces the chance of damage as the products are directly loaded into the outbound transport from the incoming transport without being stored in the inventory.

3. Build One Shipping Relationship

When it comes to traditional warehousing, you will have to work out shipping relationships with a logistics partner and may also use a parcel delivery system for your on-demand services. Cross docking reduces your need for having multiple shipping partners. You can perform warehousing and shipping with the same logistics partner.

If you are in the on-demand business, then cross docking will play a crucial role in streamlining your supply chain.

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