A warehouse management system (WMS) is a software solution that provides visibility to the entire commercial inventory and manages supply chain execution processes from the distribution center to the store shelves, and in today’s dynamic, multichannel task-based economy, connected consumers want to buy from Anywhere, implementation anywhere, return to anywhere, and in order for companies to be able to meet this need, they need to have the ability to respond quickly through warehouse management software that improves implementation capabilities, and in this article on the Fast Coo website we will show you Money-Savers like Cross-Docking, Wave Picking, and Other Options, Which you can benefit greatly from them.
What is a warehouse management system?
The warehouse management system is a software application that helps you to control and manage all the daily operations in the warehouse as well; the warehouse management system helps in guiding the receipt of inventory and storage.
Try it now : WAREHOUSE MANAGEMENT SYSTEM
How to save money through the warehouse management system
The warehouse management system gives you broad prospects to save a lot of money, and the most prominent thing that the warehouse management system can offer you in terms of saving money is:
1. Save money by not using paper
Using paper in warehouses is one of the most common administrative works, as a large number of warehouses work by relying on large quantities of papers, which are subject to error or damage, and it is also a very expensive process.
If you have employees who work on managing papers in the warehouse, you will cost them a heavy wage, while the warehouse management system can save you all these costs, and also reduce the errors that can occur as a result of using paper.
2. Save money by reducing errors:
Carrying out wrong shipments frequently would incur huge costs and losses for the company, and it would also lose customers’ confidence in the quality and reliability of the company, and thus incur additional costs for the company.
The warehouse management system can provide you with up to 100% accuracy in transport and shipping operations, in the event that the system is used properly.
Thus saving additional expenses, and affecting customer loyalty and satisfaction without additional spending, as customers will be very happy once their products arrive on time.
As you have seen, only those two methods will help you greatly in increasing your final profits, as well as increasing the efficiency of your company and gaining customer satisfaction, all because you relied on the warehouse management system.
Difference between Cross-Docking and Warehousing
The main goal of any shipment of a product to a specific customer is to deliver that product to the customer with the least possible time, damage and cost.
Traditional Warehousing requires a distributor who has a stock of products in his possession in order to deliver them to customers.
The term Cross-Docking is used between importers and exporters, but there are a large number of companies are already ignorant of the difference between Cross-Docking and traditional warehousing.
Simply Cross-Docking is the term used to describe the direct transportation of a product from an incoming transport to an outbound transportation; this phrase is used because the product mainly crosses the wharf from the inside to the outside with little or no storage space.
Cross-Docking greatly speeds up the shipping process, and it can also provide traditional storage services if necessary, and perhaps its role in speeding up the shipping process What distinguishes it most from traditional storage services
Components of the Cross-Docking process:
You may be wondering, what does Cross-Docking process consist of? Here’s an illustration of that process:
- In the process of Cross-Docking, incoming products arrive by means of transportation, such as trailers and trucks, in the process of cross berthing.
- These supplies and products are allocated to the receiving berth on one side of the cross dock station.
- Once the internal transport is established, supplies and products can be transported indirectly or directly to the departure destinations.
- When the products reach the incoming dock, they can be discharged and sorted to determine their final destination.
- After the screening (sorting) process is over, the products are transported to the other side of the cross-platform station, and this is done with the help of pallet trucks or conveyor belts, and sometimes forklifts, then the products are sent to their final destinations.
- Through this method, the products reach the final customer, and through this method a great deal of time and effort is saved, which contributes to achieving customer satisfaction, as well as achieving profits for sellers and suppliers.
In this way the products make their way to the final customer, this saves time and effort and also leads to customer happiness and profit for sellers and suppliers.
Advantages of Cross-Docking service
Cross-Docking services offer many advantages, and those are what make them better than traditional warehousing, and the most prominent of those advantages are:
1. Cross-Docking service enhances efficiency
Cross-Docking service helps boost efficiency significantly, as traditional warehousing involves more than one party, including trucking or logistics partners and parcel delivery systems.
But the freight distribution service eliminates the need for multiple business relationships, by allowing one 3PL team to handle warehousing and express shipping, which greatly enhances efficiency compared to traditional warehousing.
2. Reducing costs through Cross-Docking service
Cross-Docking service helps you reduce costs significantly, because when you store your inventory in the warehouse of your logistic partner, you rent that space, and storage for long periods may lead to a huge and unnecessary cost as well, so the Cross-Docking service offers you to avoid these costs by Ship products from the ordering site to the destination directly.
3. Managing inventory lists in a simplified and efficient way
Cross-Docking service reduces your need to maintain large quantities of inventory, as through this service products are received and then shipped quickly, and that will result in:
- Reducing the number of working hours required in inventory management.
- Reducing warehouse space required.
- Distinguish from your competitors at work.
All of this, in turn, will protect you from getting stuck in huge inventory volumes, and thus grow and adapt to meet the demands of your customers, as lower accumulated inventory and occupying space in warehouses means less risk of accidental damage or theft.
4. Reducing product damage risk with Cross-Docking service
Cross-Docking service also reduces the risk of product damage, due to the role of that service in reducing the participation of the human element, and thus reducing the errors that occur on their part, as the goods distribution process transfers products from the incoming trucks directly to the outgoing trucks, and thus it passes through a number Less than needed hands.
5. Reducing product shipping times
The best feature of the Cross-Docking service is its ability to reduce the shipping times of the products, this service works effectively to reduce the time it takes to ship the products, as it is just a request for one of the products, it is shipped directly and then it reaches the warehouse, then it is transported after that carefully and efficiently From one truck to another to be shipped to your final customer
The Disadvantages of Cross-Docking
Despite the huge advantages that the Cross-Docking service enjoys, it also has a number of drawbacks, most notably:
1. The need for adequate transportation companies
Cross-Docking system relies on shipping goods immediately and not storing them, so this process will require a sufficient number of transport companies and carriers to ensure that this is achieved smoothly to provide an effective Cross-Docking system.
2. The need for reliable suppliers
Obtaining reliable suppliers will greatly facilitate the process of Cross-Docking effectively, because the process of distributing goods requires very accurate delivery processes, and therefore there is a need for accurate and timely deliveries from suppliers to ensure that goods can be shipped to customers on time as well.
3. The need for deep planning and coordination
The process of Cross-Docking needs deep planning and coordination between suppliers, because it involves many considerations, most notably: supply and demand analysis, shipping schedules, etc., and therefore the presence of bad planning will negatively affect the Cross-Docking system.
Types of Businesses are Suited for Cross-Docking
After we have presented what the Cross-Docking service is, and explained the most important advantages and disadvantages that may be tainted by it, it is now time to determine whether your business is suitable for the Cross-Docking service or not, and here are the most important actions that will suit the distribution of goods:
1. Automotive industry business
The automotive industry generally relies on delivery on time, and car manufacturers have used the Cross-Docking service for a long time, as it is the most suitable business model for the automotive industry, and Toyota is one of the leading automakers in the use of Cross-Docking service
2. Chemicals industry business
Chemical products are considered one of the products that need special maintenance and storage conditions, which makes the process of storing them very expensive, in addition to being very risky, and therefore the speed in transporting such products to the end customer quickly is the best solution, and that is what can be Provides Cross-Docking service
3. Food industry business
It is known that restaurants in particular need periodic and constant supplies of a set of basic items and products that they use in preparing their food menu, and in the food industry the chances of spoilage of inventory increase, so relying on Cross-Docking service is best suited for the food industry where, it is possible to Companies move food quickly through the supply chain.
4. High consumption goods business
High consumption goods are those products that are in great demand, which a large number of individuals need repeatedly, and therefore, of course, they would prefer to receive them on time without any delays, and the Cross-Docking service helps companies meet consumers’ demands faster and at a lower cost.
Cross-Docking Is a Potentially Lucrative Supply Chain Strategy for Your Business
The process Cross-Docking is one of the most prominent strategies that will help you increase the profitability of your business, and there are a number of situations where the Cross-Docking service is the best strategy for your business supply chain, in the case of:
Shipping of temperature-sensitive products.
- Shipping products that require early delivery.
- Mixed shipping on trailer.
- Multimodal transport.
- Goods arrive on the container.
- The product comes from multiple sellers.
The main reason to make Cross-Docking a profitable supply chain strategy for your business is that you can use that service to save money associated with managing inventory, as the service of distribution of goods allows you to keep a smaller quantity of inventory in your warehouse, while providing a faster rate of inventory turnover.
Therefore, developing the supply chain is an essential part of your business strategy, as an unstable supply chain hinders the company’s ability to grow and outrun its competitors, and Cross-Docking is one of the strategies that can allow your company to enhance warehouse cost efficiency.