Selasa, 04 September 2018

Cross-docking Might Just Be What Your Halloween Makeup Store Needs To Thrive

By Daniel Wood


It's an understatement to say that today's cosmetics market landscape is a challenging one. In an era where consumers are more informed than ever, a retailer's survival their ability to fulfill orders accurately and on time. If that sounds like a tall order for your still-growing Utah Halloween makeup online store, maybe it's time you adopted cross-docking as a logistics management strategy.

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.

Much like every other concept known to man, cross-docking is far from being a universal answer for all supply chain problems. No prizes for guessing that careful planning and effort are mandatory for its successful implementation. Nevertheless, the technique has proved a handy tool for online businesses. So it's only natural that you'll want to take a look at its potential benefits:

Improved Order Turnarounds: As a model that links inbound and outbound logistics, cross-docking will definitely improve your turnarounds. It's worth pointing out that this doesn't make the warehouse redundant, but rather reduce the time goods spend within. Back to the main point though -- adopting the approach means orders will be fulfilled quicker, particularly if paired with the automation of your support processes.

Increasing Available Space: By speeding up the rate at which inventory is shipped, cross docking will free up room in your warehouse. Of course, there's nothing to keep you from scaling up your product line if other factors allow it. You could also opt to take advantage of the cost savings if you operate from a rented space. Whatever the case, your bottom line will improve significantly.

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: Cross-docking allows products destined for a similar location to be shipped as a full load. It thus becomes viable to exploit the available capacity to the maximum, thereby paving way for economies of scale. This eventually leads to a greener supply chain in the long-term.

Added Worth For Your Customers: No prizes for guessing that your customers will appreciate the expedited order fulfillment. But how about using a fraction of the cost savings to offset the shipping expense on their part? Seldom will you ever get a better opportunity to enrich your customers' shopping experience.

The biggest concern for any product-dependent business is to match existing demand with supply capacity. Additionally, this is an era where cost-efficiency can be the difference between your success and failure. Cross docking could very well be your ticket out of this catch-22 situation. Of course, proper planning will be key during its implementation.




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