A cross shipment in logistics is a material flow activity in which materials are shipped to customers from a secondary shipping point rather than from a preferred shipping point.
This can be done for a number of reasons, such as to take advantage of lower shipping costs or to meet customer demand for specific products. Cross shipments are often used in conjunction with distribution centers, which act as secondary shipping points.
There are several factors that need to be considered when planning a cross shipment.
The first is the location of the distribution center relative to the customer base. The distribution center needs to be close enough to the customers that it can quickly deliver the products they need.
The second factor is the availability of the products at the distribution center. If the products are not in stock at the distribution center, it may be necessary to ship them from the preferred shipping point. This can add extra time and cost to the cross shipment.
The final factor to consider is the transportation mode. If the products are being shipped by truck, the distance between the distribution center and the customer base is important. If the distance is too great, it may be more cost effective to use air freight instead of trucking.
Cross shipments can be a valuable tool for logistics managers, but they need to be planned carefully to ensure that they are cost effective and meet customer demand.