Winning the Cross-Docking Race: 5 Tips for 3PL Companies
In the fast-paced world of Third-Party Logistics (3PL) companies, reducing storage volumes and associated costs has become a necessity, especially in the context of omnichannel or air freight. This has led to a surge in demand for cross-docking.
Cross Docking: “An efficient distribution concept in which articles are moved directly from inbound to outbound without having to store them first. Another term used for this is transshipment.”
In this process, goods often leave your warehouse within 24 hours, requiring a different approach than traditional storage. Here are five key points to consider for a successful cross-docking operation:
| ✔ Swift Administrative Processing is Key to Success | Even though storage is short-lived, numerous administrative tasks are involved, often accompanied by physical documents. The right cross-docking software can simplify the logistics process for your customers and yourself. This software can track which administrative actions have been performed and easily link the required documents. Does the movement involve air freight goods? If so, it needs to handle the ability to include specific documents, including T1 numbers and linked data, Air Way Bill (AWB) numbers, House Air Way Bill (HAWB) numbers, Movement Reference Number (MRN) of New Computerized Transit System (NCTS) numbers, and others. |
| ✔ Establish Clear Procedures for Speed and Quality | Speed is synonymous with cross-docking, but it should not compromise quality. Ensure everyone knows exactly what needs to be done, whether they are seasoned employees or new hires. Clear procedures and a simple working method can help. The strength lies in your team’s expertise to simplify the logistics process and optimize information flows. The most common pain points within cross-docking includes: – The amount of manual administration actions for one shipment – Having insufficient visibility into the status of and processing of shipments – Inability to locate shipments – Inability to fast forward shipments – Cumbersome file handling – Lack of clear procedures – Unlabeled pallets |
| ✔ Maintain Clear Communication for Smooth Flow of Goods | Just as a racecar driver wouldn’t win without perfect collaboration with their team, the same applies to your operation. Every day you receive goods from different suppliers. Clear communication is essential to ensure a smooth flow of goods. |
| ✔ Automate Order Updates and Assign Incoming Goods | Send automatic order updates via Electronic Data Interchange (EDI). Automatically assign incoming goods to a specific route or zip code area. With cross-docking, your logistics operation is focused on receiving and forwarding shipments. |
| ✔ Invest in Technology | The North American 3PL market, valued at USD 308.22 Billion in 2022, continues to invest in technology, including transportation management systems (TMS), warehouse management systems (WMS), and real-time tracking solutions. These investments can significantly enhance the efficiency and effectiveness of your cross-docking operations. |
By following these tips, 3PL companies in North America can stay ahead in the cross-docking race, ensuring they deliver value to their customers while maintaining operational efficiency. Contact ArcherPoint for assistance with, or a demonstration of, 3PL Dynamics.