Cross docking and Transit Point are logistics systems and it is very important for the company to understand the difference between them.
E-commerce is growing more and more, and every day people are preferring to do their shopping online.
In order for the industry to always prosper, some things are necessary, such as good service, competitive prices, and delivery logistics.
These are not simple tasks, but it may be easier to deal with certain issues by adopting systems such as Cross Docking and Transit Point, solutions that generate more agility at a lower cost, and guarantee satisfied customers.
But what is the difference between the two?
Transit point: what it is, how it works and benefits
Transit point is an operation made to serve an area far from the central warehouses – which generates higher costs – functioning as a place of passage of the products.
Investing in Transit Point does not require a lot of investment, since it is a simple and easily manageable structure, since there is no storage activity to be controlled.
How does Transit Point work?
Transit Point works like an advanced distribution center, but without a stockroom.
This is because the products received already have defined destinations. In other words, the items are previously allocated to customers, eliminating the need to wait for order separation and shipping.
Once the products are received, there may or may not be an employee on site to organize and facilitate the process.
However, the company can have an optimized process, in which the employees who brought the cargo from the distribution center or the warehouse themselves can be responsible for following some steps and keeping the operation organized.
With this, the logistics operator responsible for the last mile can pick up the goods and start deliveries to nearby regions.
The benefits of Transit Point
A well implemented Transit Point system acts, mainly, in reducing logistics costs and in speeding up deliveries.
Because they are a simple structure, the facilities need low investment and can be positioned at strategic points in the city.
Places of difficult access, regions far from the main distribution centers, or large centers with heavy traffic can receive a transit point to optimize the operation.
With the transit points close to the customers, the delivery time can be reduced. This creates more customer satisfaction.
Besides this, the great advantage of the transit point is that it has no stock, which speeds up its operation and reduces the need for physical space.
It is important to point out that, for this alternative to be possible, it is worth having a sufficient volume of orders and products to make the transportation of these consolidated loads viable with a good periodicity.
What is Cross Docking and how does it work?
Cross Docking is a logistics system that has as its main objective to make the process of product delivery more efficient, bringing benefits to retailers and clients, as well as reducing storage costs.
This is a trend that has developed naturally. This is because the more e-commerce grows, the more it tends to become widely accessible and democratic.
On the other hand, many retailers are still unable to expand their business precisely because they have limited physical space. Cross Docking in e-commerce was born to deal with this issue.
In other words, the Cross Docking application involves a high level of efficiency and makes use of a platform with docks for receiving and shipping.
This eliminates the need for large areas for storage.
Cross Docking: How does it work?
The Cross Docking system in e-commerce assumes that the division of tasks must happen more precisely.
In this way, the retailer does not have to deal with stocking products, sales strategies, and delivering the goods at the same time.
This is because when the customer makes a purchase on the site, the product is sent to a distribution center that, through an organized redistribution system, sends it to the customer.
This means that most of the logistics work is done by distribution centers that work together with the supplier.
With Cross Docking, the entrepreneur operates in the sales force, creating a platform that will serve as a virtual store for the products, designing marketing actions and making sales.
After the sale is closed, all the delivery logistics are handled by Cross Docking, via suppliers and distribution centers.
Benefits of Cross Docking
The Cross Docking logistics model in e-commerce brings several advantages.
In addition to reducing the chances of products getting stuck in stock (since it is the supplier itself that sends the item that has already been sold), the operation as a whole reduces logistics costs.
The space required to set up store is also considerably reduced, since you don’t have to store all the products. There is also more stock rotation.
Another noteworthy benefit is the greater security that Cross Docking offers, since the storeowner is responsible for delivering the goods to the clients, and therefore has greater control and guarantees security in this service.
Cross docking and Transit Point: differences and which system to choose
The system you will choose for your logistics depends on the reality and challenges of your operation.
If you want more independence from third parties, the transit point may be the best alternative, since you can set up your own operation.
Then, the products will leave the distribution center to the transit point and, from there, the logistic operators (outsourced or own) make the deliveries.
If you don’t have much space for stock in the First Mile or don’t want to worry about the logistics operation, the cross docking system offers you this greater freedom.
You sell the products and send them to the distribution center, which is responsible for everything else.
In any case, there are numerous facts that show how important a logistics system is for companies that need to optimize the process of deliveries, distribution, exchanges, and customer pickups.
Logistics allows the company (managers and administrators) the ability to organize, plan, and control the processes that involve the storage and delivery of parcels, always aiming to make this path as practical and easy as possible, either for those responsible or for customers.
Having this kind of facility when organizing logistics gives the company the possibility to deliver a differentiated, quality service to the market, standing out more and more from the competition.
Cross Docking and Transit Point with smart lockers
For Cross Docking and Transit Point to be successful and bring results, it is necessary to have good management and logistics, with support from companies that work in the logistics process, such as handover.
Handover is a company that works with Cross Docking and Transit Point and, by means of smart lockers, we offer customized solutions for each operation and using artificial intelligence.
Visit hihandover.com and find out more!
