Supply chain efficiency is dependent on the perfect balance of speed and coordination. Crossdocking and transloading are often used to accomplish these desired efficiencies while also reducing cost. Both help with transporting cargo to the destination and often include other services that are done at the warehouse.
The objective of any supply chain operation is to transport the product from the factory to the market as quickly as possible. Transloading and crossdocking make this achievable through the consolidation of the goods and shipping them directly, removing the need for long-term storage.
Although transloading and crossdocking are similar, they do have differences that should be considered when deciding which service you should choose for your Chicago area business.
Transloading
Transloading happens at the port terminal when goods are transferred from one method of transportation to a facility. Everything is then packaged and palletized at the facility and then loaded onto a truck or other type of container before being delivered to its destination. Transloading allows for the opportunity to sort the shipment before it is delivered to the distribution center or the warehouse, eliminating the unnecessary and expensive land transportation.
Crossdocking
Crossdocking has a minimal need for storage, allowing the operations to result in a faster delivery time. The shipments travel directly from one truck to another, skipping the storage, and saving time. Flawless communication and coordination between the shipper, carrier, and third-party logistician is needed in order to avoid delays and mistakes.
Which Option to Use
Although both services have their benefits and drawbacks, the choice ultimately depends on the type of business, the nature of your goods, geographical specifics, and the intended destination.
Crossdocking is great for companies that want to avoid complex logistic services and the stacking of goods in warehouses. The delivery time is shortened, but precise communication and coordination is needed to avoid costly mistakes and delays.
Transloading is recommended for companies that want their goods handled and palletized, however, time is added to the shipping process and delays can be caused if there is not careful preparation.
If you need transloading services throughout the Midwest, turn to the experienced team at G&T Enterprises. Contact us today to learn more.
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