What does the cross-docking process involve in supply chain management?

The cross-docking process in supply chain management primarily involves sorting incoming shipments for outgoing deliveries without the need for long-term inventory storage. This method streamlines the movement of goods by facilitating the quick transfer of products from receiving docks to shipping docks. The goal of cross-docking is to reduce handling and storage time, thereby increasing efficiency in the supply chain and minimizing costs associated with warehousing.

In this system, products are typically received at a distribution center and then immediately sorted based on their destination. Once sorted, they are loaded onto outbound transportation vehicles for immediate delivery. This approach helps in managing inventory more efficiently since goods do not linger in storage, which can also support just-in-time inventory practices.