Trucking companies are always looking to increase revenue. Not only for the company but for the drivers as well. The model for keeping drivers has changed recently, and companies struggle to keep up. But, it doesn’t have to be this way. In fact, cross-docking can benefit everyone who uses the service. For example, drivers advance their earnings, and shippers save money.
So, if you want to learn about the all-around benefits of cross-docking, keep reading.
What Is Cross-Docking?
Companies shipping goods have various needs for the handling of their freight. A cross-dock facility enables those requests by staging the freight. For example, a company wants the load sent across the country.
The inbound load gets dropped by the carrier for transfer to the next to continue the journey. Next, the shipment moves from inbound to outbound, where the destination carrier waits for loading. Once complete, the shipment is on its way again without stopping for warehousing.
In another form, the company wants the load split for transfer to different regions. Cross-docking services then separate the cargo into the trucks for each destination. But, again, this generally happens without storing any goods for a long period of time.
The Benefits of Cross-Docking
Everyone involved in the process can benefit from cross-docking services. Here’s how it works with today’s communication technology.
For the Shipper
Cross-dock delivery saves shippers the need for large storage facilities of their own. Instead, shippers can send a container of goods and have it redistributed at the cross-dock facility.
For example, they can send ten pallets to the cross-docking service, where they get divided. Let’s say three pallets will go one way, three more to a different city, and the last four another again.
All this means less handling of material before shipments are on their way. As well, there is less need for warehouse space.
Companies see labor and warehouse costs reduced by moving the freight as needed. In cases where shippers are sending smaller loads, the benefits are considerable. Considering the cost of direct shipment vs. cross-docking, there is a clear winner.
Finding a transporter to take a small load a long distance can raise shipping costs. Cross-docking services match the load with other shipments going the same direction. The savings to the shipper from this practice is significant.
For the driver
Using the same examples, cross-dock delivery also presents advantages to truckers. Drivers using a cross-dock facility have less distance to travel to deliver their load.
At the same time, there’s a better opportunity for drivers to fill their loads on return. Several smaller shipments to their home region result in greater earning potential.
What About Tracking
The supply chain has advanced to allow all parties consistent tracking of freight. Shippers rely on having contact with transport companies. In turn, trucking companies need strong bonds with cross-docking facilities.
Customers want to save money on shipping. But, that doesn’t mean trucking companies can’t benefit. Cross-docking gives them greater income potential by streamlining operations.
That sounds like a win-win for all. So call us today to find out how a connected trucking service will streamline your operation.