In the supply chain industry, there is a lot of confusion about what is transloading and what is crossdocking. These 2 services have different strategies, but both work to accomplish the same goal which is to reduce supply chain costs. Crossdocking services and transloading services both include the handling of a product and moving it to a different truck or multiple different trucks.
What is Transloading
With more companies setting up their manufacturing or suppliers overseas, inbound ocean containers have increased. Transloading services transfer cargo in a container from one load to another. When a container is transloaded, it usually occurs at a facility that is close to the port terminal. A container will be taken into a facility and transferred to a domestic container or truck. During the transloading process, the product is most often palletized at the facility since most ocean containers are floor loaded. Inventory and transportation cost savings are achieved by switching to a truck from a container.
What is Crossdocking
Many major retailers utilize crossdocking services within their own distribution chains to handle individual stores by consolidating multiple inbound trucks into outbound truck shipments. Crossdocking services involve unloading products from a truck or container into another truck for delivery. These items are not stored for long periods of time like with transloading, instead they are usually stored near dock doors for a truck or are loaded directly onto the truck. With Crossdocking, there is little to no storage, and turnaround time between receipt and shipment is usually less than 24 hours. This quick turnaround requires excellent communication and coordination between the 3rd party logistic supplied, carriers, and shippers. Lack of communication leads to supply chain delays and inefficiency, undoing the benefits of a crossdocking strategy.
Advantages and Disadvantages
Crossdocking services are a great way to speed up the process if you don’t want to worry about handling complex logistics and palletizing at the warehouse. Transloading is a great way to have your cargo handled, palletized and sorted. However, this process adds time to shipping and can cause delays if you don’t prepare for it.
The rate in which you bring your product to the market is key in the supply chain. Delivering the product straight to the customer saves you much needed time and money. This is why these processes are important to hash out for your company. Call Us Now at (321) 259-7983 or go to the contact us page to discuss your project, our pricing, or if you have anymore questions about crossdocking. No matter what type of warehousing needs you have, we are here to help with your product distribution.