Cross-docking is a practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between.
Advantages of retail cross-docking
- Streamlines the supply chain, from point of origin to point of sale
- Reduces labor costs through less inventory handling
- Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock
- Products reach the distributor, and consequently the customer, faster
- Reduces or eliminates warehousing costs
- May increase available retail sales space
- Less risk of inventory handling