Keeping a large inventory to fulfill customer orders quickly is costly. It requires maintaining a warehouse for the inventory as well as a full staff to run the operation. Using cross dock operations services reduces these costs while maintaining an efficient supply chain.
The Cost of Warehousing
Payment for warehousing space is by the square foot. Every time a piece of inventory is delivered into a warehouse, there are costs associated with the square footage and length of time the inventory sits before shipment. This expense drains profit from the company. Using a warehouse with cross dock services alleviates the need for large inventory storage by combining incoming inventories from different suppliers and loading the entire order for immediate shipment.
The Cost of Moving Inventory
Moving shipments by any method is costly. Sending a customer order in several small shipments is inefficient and costs more than combining the entire order. This is not always possible when there are several supply locations for each order. Using cross dock operations places all parts of the customer’s order in one warehouse. The entire order is then combined into one, cost-effective shipment.
Managing a cross dock operation is complex. Any company with a competitive edge in this arena has experience with many types of shipping and inventory management. It is always important to ask about experience and performance when seeking this service.
The ability to cut costs and stay competitive matters in today’s business world. Using the most efficient and effective means to deliver customer shipments adds to a company’s competitive edge. Save supply time and money by choosing a company with a history of experience in all necessary areas of shipping and inventory management.