One of the questions you may be asking yourself is whether crossdock is right for your business. There’s no question though – if you’re a retailer, cross docking is essential.
There are several scenarios where cross docking will rise and become pertinent to your company’s longterm success. Consider these situations:
High Demand Products – Warehousing is always an option for you; but what about goods that don’t require long-term storage? This is where crossdocking fits in perfectly.
Ever-Rotating Stock – This is applicable to the ‘blow-out’ centres specifically. Chances are you are going to rotate your stock fully in a short period, even as frequently as weekly. Here again, it doesn’t pay to warehouse – crossdocking should instead be your focus.
But one of the reasons that really strikes is one that was given to Supply Chain Digest by Auburn University’s Dr. Kevin Gue. He reasons that, “Because the lead time in a crossdocking system is longer than in a traditional warehousing system, demand at stores during the lead time could throw off replenishment quantities,” Gue notes. “By aggregating orders to a vendor from several stores, and then making a final allocation at the last possible moment, replenishment quantities are as accurate as possible, and inventory costs are reduced.”
These, of course, are just a couple reasons to explore crossdocking as an option for your retail outlet. For more, contact us today!