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Let's Compare Crossdocking and Transloading

Crossdocking and Transloading

Crossdocking and transloading: when it comes to logistics, perhaps you’ve heard of these terms. Both work towards the same goal of streamlining the supply chain and saving on labor, inventory and distribution costs.

They also share similar characteristics in the way a product is transported and delivered by utilizing a different truck or container for transport than what was used for the initial inbound shipment.  So how do they differ from each other and why is it important? Take a look at this simple break down to erase any lingering questions and help you plan to cut costs!

Transloading

With the neverending advancements in technology and demand for speed and precision when it comes to transportation, companies are looking abroad when it comes to manufacturing and suppliers. This is causing a spike in the need for more inbound ocean containers, and that’s where transloading becomes an integral part.  When a shipment arrives into port, the cargo is then transferred from one load unit to another at a facility near the port terminal.

As mentioned, reducing supply chain costs is the name of the game. With transloading, a product is moved from an ocean container to a truck for transport. This saves on inventory and transportation costs, but be aware- mishaps can cause delays, damages and there is always the threat of theft.

Crossdocking

Crossdocking doesn’t deal with inbound ocean containers. Instead, cargo is moved from a truck or container onto another truck and then sent off for delivery, quick as can be. Since products are simply unloaded near dock doors, waiting for their transfer, the need for storage is eliminated and the turnaround time between receipt and shipment is rapid.

This sounds fast and easy, but efficient turnaround in under 24 hours requires top-notch communication from the start to finish. Electronic feeds must provide accurate data on when the inbound cargo will arrive and the time of pickup. Of course, when a delay occurs or there are errors in data, crossdocking can turn into a headache.

Want to learn more about about our transloading and crossdocking services? At America 1 Logistics, all supporting drayage is provided by us, so you can rest easy knowing you're getting the safe, efficient service we're known for. Contact us today and we’ll answer any questions you may have.

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