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5 Reasons Cross-docking is Changing Retail Warehousing

Kameron Smiley

Cross-Docking As retailers see increased store traffic on nights and weekends, smaller on-site inventory storage capacity, and greater competition from e-commerce and online retailers, more are viewing cross-docking as a strategic imperative.

Cross-docking has been around for generations. Yet, now more than ever, retailers are moving goods and products from the receiving dock directly to the shipping dock as a more efficient way to bridge "the final mile."

Consider these five reasons when exploring whether your retail operation can benefit from a cross-dock solution:

Keep up with the clicks. Consumer demand and competition from eCommerce sites such as Amazon, Google and other Internet-based retailers has pushed traditional brick-and-mortar retailers to up their game. For many, same day / next day fulfillment for both in-store and online purchases is the new normal. This also requires retailers keep store shelves stocked, while also keeping costs in check. Pushing product closer to the storefront faster has become the competitive mandate.

Match consumer shopping habits. As consumers shop nights and especially weekends, retailers need faster replenishment, without giving up valuable retail space. Just-in-time restocking ensures product is on hand when consumers reach for it.

Tight in-store inventory. Store-rooms don't sell goods. Showrooms do. For years, retailers have tried to push more inventory out front. Cross-docking allows retailers to reduce the size of storerooms - and transform that floor space into retail selling space.

Improve inventory management and damage control. More frequent or just-in-time replenishment allows retailers to break the case to allocate goods piecemeal or at significantly lower quantities to store locations, as opposed to shipping and storing entire boxes of merchandise. This also can reduce the likelihood of damage to stored inventory

Accommodate flexible delivery schedules. Some stores can't take deliveries on certain days. Others aren't staffed to handle inbound loads. Smaller cross-docked loads can often be scheduled to match individual store locations' logistical or staffing realities, with appointment windows as tight as one hour.

Cross-docking brings inherent issues and risks, especially for those organizations that haven't considered it in the past. Cross-docking requires personnel skilled in the coordination of inbound and outbound transportation, as well as the specialized delivery equipment, including lift gates or conveyors, needed to transfer goods.

Additionally, some retail locations are not designed or equipped to safely accommodate the increased traffic flow. Handled poorly, cross-docking could lead to increased product damage, loss or safety risks.

Traditional brick-and-mortar retailers that have not explored cross-docking in the past should discuss the benefits of cross-docking with a 3PL provider with the right facilities, processes, and personnel.

Expect to see more cross-dock facilities emerge as retailers seek to compete with the endless mall that is the Internet. Retailers, especially big-box stores, should review the entire supply chain for opportunities to improve efficiencies as they cross the final mile and get closer to their customers.

 

 See more at:

http://blog.ryder.com/2015/06/5-reasons-cross-docking-changing-retail-warehousing/#sthash.z8e0nlBK.dpuf


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