Cross-docking is a logistics strategy that involves directly transferring goods from inbound transportation vehicles to outbound vehicles, with minimal or no intermediate storage. It aims to streamline the supply chain by reducing inventory holding time and associated costs. In cross-docking, products are received at a dock, sorted, and then immediately loaded onto outgoing vehicles for immediate delivery.
This process eliminates the need for long-term warehousing and storage, allowing for faster product movement and shorter order fulfillment cycles.
Cross-docking is particularly useful for time-sensitive products, perishable goods, or when demand fluctuates rapidly. By eliminating storage requirements and minimizing handling, cross-docking enhances operational efficiency, reduces inventory carrying costs, and improves overall supply chain responsiveness.
