What does 'cross-docking' refer to in logistics?

Cross-docking is a logistics method that emphasizes minimal storage by directly transferring products from inbound transportation to outbound transportation. This process involves unloading materials from incoming delivery vehicles and immediately reloading them onto outbound vehicles, often within a short time frame. The goal is to streamline the supply chain, reduce inventory holding costs, and enhance delivery speed.

By minimizing storage time and space, cross-docking effectively facilitates quick turnaround and movement of goods, allowing companies to respond promptly to customer demands and maintain a lean inventory. This approach contrasts with practices that focus on long-term storage or bulk purchasing, which involve holding inventory for extended periods or acquiring large quantities in anticipation of future demand. Thus, the method exemplified by cross-docking distinctly reflects the efficient flow of goods with minimal warehousing involvement.