In the world of logistics, methods, and systems that can simplify and streamline the supply chain while cutting costs are constantly being refined and customized to better benefit individual businesses. Cross-docking is one such method.
Cross-docking is the practice of unloading freight from an inbound load, and then loading it directly into an outbound shipment with little to no storage in-between. Essentially, when companies use the cross-docking method, a distribution center functions more as a sorting center than an actual storage or warehouse facility.
Overall, cross-docking is highly cost effective for any business with high-volume shipments and considerable transportation needs. Switching from the traditional distribution center model can prove cost-beneficial as well for companies looking to increase inventory turns and reduce material handling.