The value of cross-docking services is based on meeting certain prerequisites before implementation. While highly beneficial for many retail industries, cross-docking services must first be deemed appropriate for your Winnipeg business, and then these prerequisites should be examined.
Industries that gain the most benefit from cross-docking services are those who have products that take up a large amount of storage space, are delivered in predictable high volumes or are perishable. Once you have determined that your business may benefit from cross-docking, the next step is to meet the prerequisites for implementation.
Cross-Docking Business Prerequisites
Using cross-docking in your business requires cooperation between your business and suppliers. Before implementation, there are several prerequisites to accomplish to make using a Winnipeg cross-docking service a success. A few of these include:
- Agreement. Both your business and your suppliers must be in agreement to use cross-docking as part of your delivery method. There also needs to be a consensus on how the costs and benefits of using a cross-docking service will be shared.
- Communication. There must be an effective way to communicate information between your business, your clients and your suppliers to ensure cross-docking will run smoothly. This can include sending accurate inventory and ordering data to your suppliers, directly from the retail locations.
- Inventory management strategies. Since inventory is not stored but sent directly on to your retail locations or to your customer’s, inventory must be closely regulated. Supply chain management strategies must be implemented to ensure that there is effective coordination between all members within the chain.
For many retail suppliers and businesses in Winnipeg, cross-docking services can be highly beneficial. However, it is important to first make sure it is appropriate for your business and that all your partners within your supply chain are willing to cooperate to make it a success.