The better informed that consumers become, the more the pressure they put on retailers when it comes to fulfillment. Specifically, the former expect their orders to be delivered quickly, precisely, and for free. Chances are that you've been looking for a way to do this without affecting other areas of your online Utah Halloween makeup store. With that being the case, it's the high time you switched to cross dock operations.
So, what in the world is 'cross-docking' in the first place? It's basically a supply chain model in which inbound goods are shipped directly to customers. Once it's received, inventory is usually unloaded and screened within the same terminal. Products are then sorted based on existing orders and, using pre-selected means of transport, dispatched to their rightful destinations.
Of course, it takes a great deal of planning and effort to sustain speed in what's already a demanding supply chain. Not that it will make sense in all situations either. Still, cross-docking has proved a success for businesses that depend on online sales. This makes it worth your consideration, but there's no harm in exploring its benefits:
Better Turnaround Times: This comes from the ability to link up both ends of your supply chain, thus bypassing the warehousing phase . Keep in mind, though, that this won't do away with the need for the said facility. In actual sense, what cross-docking does is reduce the amount of time inventory spends in storage. This creates room for quicker order fulfillment, more so when combined with automated processes.
Frees up Space: The less time it takes to ship inventory after it's received, the more square footage you'll have available in your warehouse. From there, it's up to you to decide whether to scale up your operation or use the space for other purposes. Even if it's a rented facility you're using, the reduction in your requirements will still boost your business's bottom line in some way.
Minimizes Risk: Cross docking cuts out some of the steps involved in a standard warehouse operation. This in turn minimizes handling and movement, thus taking out some of the risk involved. Specifically, inventory is less likely to get damaged or lost when it passes through a minimal amount of hands. The likelihood of overstocking will also shrink substantially.
Cost Effective: A cross-docked facility allows shipments headed for a similar end point to be hauled together. This creates fuller loads for each trip, which in turn increases the economy of scale. Each unit product's carbon footprint also shrinks as a result.
Increasing Customer Satisfaction: Who among your customers wouldn't love to have their orders delivered quickly? You don't have to guess, but what's important to note is that adopting cross-docking could make it possible to provide free shipping as well. Although this will require you to sacrifice a fraction of the cost savings, such opportunities are hard to come by.
Obviously, your top priority is to keep your supply chain flowing to the rhythm of demand. You also want to be able to expedite deliveries, albeit without paying outrageous amounts for it. Implementing cross-docking could help you solve both puzzles without losing your sanity. As always, be sure to plan your approach carefully before diving in.
So, what in the world is 'cross-docking' in the first place? It's basically a supply chain model in which inbound goods are shipped directly to customers. Once it's received, inventory is usually unloaded and screened within the same terminal. Products are then sorted based on existing orders and, using pre-selected means of transport, dispatched to their rightful destinations.
Of course, it takes a great deal of planning and effort to sustain speed in what's already a demanding supply chain. Not that it will make sense in all situations either. Still, cross-docking has proved a success for businesses that depend on online sales. This makes it worth your consideration, but there's no harm in exploring its benefits:
Better Turnaround Times: This comes from the ability to link up both ends of your supply chain, thus bypassing the warehousing phase . Keep in mind, though, that this won't do away with the need for the said facility. In actual sense, what cross-docking does is reduce the amount of time inventory spends in storage. This creates room for quicker order fulfillment, more so when combined with automated processes.
Frees up Space: The less time it takes to ship inventory after it's received, the more square footage you'll have available in your warehouse. From there, it's up to you to decide whether to scale up your operation or use the space for other purposes. Even if it's a rented facility you're using, the reduction in your requirements will still boost your business's bottom line in some way.
Minimizes Risk: Cross docking cuts out some of the steps involved in a standard warehouse operation. This in turn minimizes handling and movement, thus taking out some of the risk involved. Specifically, inventory is less likely to get damaged or lost when it passes through a minimal amount of hands. The likelihood of overstocking will also shrink substantially.
Cost Effective: A cross-docked facility allows shipments headed for a similar end point to be hauled together. This creates fuller loads for each trip, which in turn increases the economy of scale. Each unit product's carbon footprint also shrinks as a result.
Increasing Customer Satisfaction: Who among your customers wouldn't love to have their orders delivered quickly? You don't have to guess, but what's important to note is that adopting cross-docking could make it possible to provide free shipping as well. Although this will require you to sacrifice a fraction of the cost savings, such opportunities are hard to come by.
Obviously, your top priority is to keep your supply chain flowing to the rhythm of demand. You also want to be able to expedite deliveries, albeit without paying outrageous amounts for it. Implementing cross-docking could help you solve both puzzles without losing your sanity. As always, be sure to plan your approach carefully before diving in.
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