Cross docking is a terminology used in the courier or shipment services and most of us might not be familiar with this term
. The word cross docking explains its meaning to some extent in the form of docking a thing from one place to the other without involving a stop in between. In actual logistic terms it means a distribution mechanism in which the things are received from one mode of conveyance and shifted to the next shipment means without storage and stacking of the stuff at one central place.
This shifting of loads from one means to another can be carried for a lot reasons. Firstly, this can be done in case when the first of mode of transport can no longer be used, such as in the case of delivery of goods from one port to the another. Trucks cannot move in water so the shipments will have to be unloaded and placed in cargo ships. One of the means of doing so can be that the trucks arrive at the port and then these are stored at port for further delivery to the next means of transport, but this will cost extra charges for storage and the effort of loading and unloading the stuff will also be doubled.
San Francisco Courier Service uses cross docking in order to save the money of customers for long route shipments. Cross docking is not merely used with regards to the docks; it is in fact a broader logistic term.
San Francisco Courier Service uses cross docking for segregation of shipments of a particular place. A huge truck carrying the loads of different categories and different cities will have to be unloaded and the load needs to be segregated for transportation to respective destinations. This can be done through cross docking. Mini trucks can receive their loads and then head for their destinations.
This system was introduced in 1930s and carries a lot of advantages. It channelizes the supply chain of goods from the originator to the sale point. It lessens the cost of handling and storage and reduces the load of the recipient. The delivery time is reduced and the sales person receives the goods quicker and faster.
Profit margin of the sales person is also increased because the money saved in shipment will be included in the profit. These are just a few of the advantages of cross docking. There is a huge of number of these advantages which are hard to mention here.