What are the Risks Related to Cross Docking?

What is Cross Docking?

Cross-docking is an order fulfillment strategy where products from a supplier or manufacturing unit are shipped directly to a customer or retail chain without any need for mid storage of goods in the warehouse. It is a process of receiving products through an inbound dock and then transferring them across the dock to the outbound transportation dock. It consists of trucks and dock doors in inbound and outbound sides with minimal storage space. The process starts when inbound products are arrived through transportation such as trucks/trailers and are assigned to receiving dock on one side of the cross dock terminal. The goods are sorted and screened to identify their end destinations and moved to the other end of cross dock terminal with the help of a forklift, pallet truck, and any other transportation medium. After completing the loading of goods at the outbound dock, the products delivered to the end customers.

Major Risks Related to Cross Docking

1. Implementing the cross-docking strategy in the warehouse required capital investment. This can translate into a warehouse redesign to save space for a conditioning area and/or the adoption or designing of a warehouse management system to assist with cross-docking tasks.
2. Cross-docking fully relies on a team to transfer items from inbound to the outbound dock, organizations need to be trustworthy of their suppliers’ ability to deliver the right products in right condition on time to the cross-docking terminal.
3. A number of Transport Carriers needed to take full benefits of the cross-docking system. A sufficient number of transport carriers will be needed for the delivery of goods. Since the operation is mainly dependant on trucking, there is an increased cost, need for parking space for trucks in the warehouse, and need for enough docks to implement the system.
4. It requires time for proper planning and execution: without coordination between supply and demand and proper planning, cross-docking is not suggested in the warehouse. Therefore, in the global computation, cross-docking should save enough time to cover its application in operational planning.

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Role Of RFP In A Logistics Outsourcing

The Request For Proposal

The “Request For Proposal” or “Request For Tender” in the logistics industry is designed to help shippers find the best 3PL providers to meet their needs. It is critical in the supplier selection process. A company seeking an outsourcing supplier will draft an RFP/RFT and send it to a shortlist of suppliers that appear to be suitable candidates for partnership. A logistics outsourcing RFP should be highly detailed and very concise in setting out the company’s requirements for service provision. In various ways, the logistics outsourcing RFP is the basis on which the partnership is built and its quality can make the difference between a successful or failed venture.

The “Must Have” Components of Logistics Outsourcing RFP

An RFP for logistics outsourcing services should comprise of the following components to provide suppliers with a basis for making informed service proposals.

1. A clear and concise overview of the issues driving the outsourcing decision
2. A description of the specific services needed
3. A detailed breakdown of the business requirements (this will make up the bulk of the RFP)
4. The service KPIs to be used for supplier performance monitoring
5. Specification for supplier pricing breakdown (all suppliers should provide pricing according to the prescribed specifications)
6. Specifications for the format of supplier proposals (as with the pricing breakdown, a standard format makes it easier to compare proposals)
7. Company contact details and instructions for submitting a proposal
8. Description of supplier selection criteria

Get in touch with the experts at Tenaxx Logistics today for more information and updates.

How to Successfully File a Freight Claim

Learning how to file a freight claim successfully is important because it will save time and money for your company. A freight claim is a legal demand for the payment of money, originate from the violation of a contract of carriage. Below mentioned some specific guidelines and processes is the only way to correctly deal with these claims. There are four necessary elements to filing a freight claim:

1. The shipment must be identified so the carrier can complete an investigation.
2. The type of loss or damage must be stated clearly.
3. The amount for the claim must be stated correctly.
4. A demand for payment by the carrier must be mentioned in the freight claim.

To ensure all four elements are included properly, follow these tips and suggestions to make sure you effectively file your next freight claim:

• Taking immediate action is a crucial step of effectively filing a freight claim. It is important to file the claim in writing, and within the time limits specified in the contract of carriage. The customer then becomes responsible for providing proof that the damaged or missing items were the outcomes of poor actions on behalf of the carrier company. If the customer is unable to provide such proof, the claim will be declared invalid.

• A responsibility that all parties of the shipping process share are attempting to lessen the damages. It is your responsibility to give a good faith effort to salvage damaged products unless you consider them to be totally or considerably useless and of no good.

• Including supporting documentation is important for correctly filing a freight claim. If available, you should include the original bill of lading (BOL), the paid freight bill, inspection reports, notification of loss, copies of the request for inspection, invoices, waivers, and other suitable documents such as temperature reports and weight certificates. The more information you have related to the freight, the more effective your claim will be.

• A detailed explanation of the loss or damage should be properly displayed. The file should have the information such as the number of items damaged, the type of damage, the value of each unit, and the net loss which results in the total amount of the claim.

If you regularly ship LTL freight or truckload shipments, freight losses and damages are almost inevitable at some point during the process. That’s why it’s important to have a well experienced and caring freight management partner on your side. When you work with Tenaxx Logistics, we’ll gladly assist you with the filing or processing of your freight claims, and we’ll go to bat for you with the carriers to best represent your interests. Contact us today to learn more.

How are LTL and FTL Shipping Rates Determined?

Multiple factors are involved in deciding how LTL and FTL shipping prices are defined.

1. Distance

On the basis of pick up and destination zip codes, carriers determine the distance freight must travel. After calculating the distance, they use the freight’s weight and class—based on NMFC codes—to determine the shipment cost.

2. Freight All Kinds

Carriers will also offer a discounted rate to customers who choose to combine their freight with that of other shippers. These discounts are usually provided by means of the carrier lowering the freight class of the items being shipped, so as to lower the price.

3. Accessorial Charges and Surcharges

The main factor in determining LTL shipping rates is the presence of accessorials. The term “Accessorials” are added services that shippers may need carriers to provide at the final destination in order to ensure that the product reaches the right hands shortly. Basically, these accessorials take time and slow down the delivery of other shipments, so carriers need to adjust their pricing accordingly. Some examples of common accessorials are Inside pickup, Residential service, Inside delivery, Fuel surcharge, and Arrival notification.

4. FTL Rates

FTL rates are easy to price out since an entire truck is being dedicated to one company’s shipment. FTL shipments rate determined by the cost per mile basis or based on a single door to door rate. FTL shipments are also subject to fuel surcharges.

If you would like to get started on shipping today and get the best freight rates, get an instant rate quote at Tenaxx Logistics today.