Warehousing and distribution services can get complex, especially when products need to be shipped from location to location without delay. We know that warehouse space is commonly used when retailers need a more long-term storage option, and that distribution centres are used for short-term storage—so what are cross-docking warehouses used for? Cross-docking is used when items are to be shipped from the manufacturing plant directly to the customers, with little to no material handling in between. This strategy has had a profound impact on retail warehousing and supply chain services. What does cross-docking mean for supply chain management and e-commerce fulfillment services in Toronto? Keep on reading to find out.
Enhances Inventory Management
Inventory management becomes more complex when items need to be organized and kept track of in a warehouse for a longer period of time. Since items are in and out almost immediately with cross- docking, it makes it easier for providers to keep track of their items. Cross-docking decreases the likelihood of items being lost and/or damaged, since the turnaround period is so fast.
Reduces the Need for Warehouse Space
There’s much less demand for warehouse space when e-commerce businesses take advantage of cross-docking. Not as many items need to be stored, and products are typically only in the warehouse for a short period of time until they’re shipped out. This allows smaller warehouses to increase their productivity and move items even faster than warehouses with more storage space.
Decreases the Cost of the Supply Chain
The cost of your supply chain can be greatly reduced with cross-docking. It can ship multiple orders at the same time, and even utilizes less labour, such as warehouse pick and packers, for example. Cross-docking eliminates the cost of inventory and product rotations, and you can save a ton on freight when you consolidate less-than-truckload shipments into full loads.
Boosts Service Levels
Since items are shipped in bulk with cross-docking, there will be more flexibility further down the supply chain to accommodate unforeseen changes. This aids in creating a more accurate and responsive order fulfillment process, with shorter order cycles.
As one of the leading logistics service providers in Toronto, Lean Supply Solutions can help you create an efficient end-to-end supply strategy to ensure your customers receive their parcel in tact and on time, while remaining cost effective for you. Our customized services will give you a competitive edge against your competitors, and have you come out on top, every time. Whether you’re looking for contract logistics, manufacturing support, or complete 4PL services, we have the solution for you. Contact us today to learn more about our services, and how we can take your order fulfillment process to the next level.