An opportunity to streamline processes and adopt a new warehousing distribution solution was what Cross Docks Australia identified, when they were approached by the directors of mila&milo to improve their product distribution.
Mila&milo specialise in importing and distributing Dutch clothing and accessories for children.
When Cross Docks Australia first met with mila&milo, they were looking for opportunities to enhance their existing logistics and distribution arrangement. They had engaged the services of a 3PL (Third Party Logistics) operator, however, the Company Directors found themselves having to spend time supervising some of the basic daily operational processes.
Whilst they wanted an understanding of operations and movement of stock they had not anticipated having to spend so much time in operations, at the cost of time lost focusing on their core competencies of research, buying, fostering relationships with existing clients and developing new business.
A tailored warehousing and distribution solution:
On meeting with mila&milo, Cross Docks Australia’s first job was to ascertain the specific needs of their prospective client. Rather then fitting a square peg in a round hole, Cross Docks Australia developed a tailored solution to fit the growing needs of the business.
Part of this logistics solution included leading RF scan pack technology which increases accuracy of pick and pack of stock. Cross Docks Australia also offered warehouse growth capabilities with the space and flexibility to cater to fluctuating stock levels, seasonal variations or increased demand for stock.
Simplifying the rate and streamlining costs:
Good service is important but the vital thing was for mila&milo to achieve this within their logistics and warehousing budget.
Cross Docks Australia was able to offer mila&milo a fixed cost per unit arrangement, different to their previous 3PL provider, which offers not only a simpler invoicing system but also allows mila&milo to accurately predict what their logistics costs will be going forward.
This simple system improves budget forecasting abilities and reduces the difficult and time consuming process of deciphering what costs were for what service.
Partnership benefits:
A new relationship has been formed based on simplicity, transparency and attention to detail. mila&milo has gained the following valuable services from their relationship with Cross Docks Australia:
- Simplified invoicing system: The ‘fixed cost per unit’ rate system results in a simple invoice to mila&milo, that is effortlessly reconciled with the dispatched orders
- Transparency without having to be on the warehouse floor. With the RF (radio frequency) pick and pack system the data movement is visible through a web-based inventory system. This allows mila&milo to have certainty about stock levels, refill requirements and movement of particular item sku’s
- Ability to interface/integrate IT systems which decreases the double handling of data
- Ability to remain ‘across’ the warehouse and distribution activity without having to manage it themselves. This allows more time to focus on developing their client relationships, building business and sourcing stock