Friday, 7 September 2018

Why Cross Docking Makes Sense For Your Halloween Makeup Online Supply Store

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.

Of course, it does take thorough planning and a ton of effort to maintain a fast-paced supply chain. Not to mention that cross-docking isn't ideal for all scenarios as well. It has, however, proved excellent for e-commerce businesses. Now that you're hooked, take a look at the benefits it could bring your way:

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: With cross-docking, shipments headed to a similar destination can be transported together. This leads to better utilization of the available carrying capacity, thereby optimizing costs in the long term. The carbon footprint of each unit product also shrinks.

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.

Matching demand with supply will always top your priorities list for as long as you're still running a product-based business. Cross-docking doesn't just provide an answer for this -- it will also help you get your goods to your customers faster without incurring a cost penalty. Just be sure to implement it with a solid foundation in place.




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