What does cross docking involve?

Cross docking is a supply chain management practice where products are unloaded from incoming vehicles and directly loaded onto outbound vehicles with minimal storage time in between. This process is designed to enhance efficiency by reducing the need for warehousing and speeding up the movement of goods from suppliers to customers.

The primary goal of cross docking is to streamline operations and minimize inventory holding costs. By handling products in this manner, companies can reduce waste, lower transportation costs, and improve delivery times. The focus is on quick turnover, which means that products are typically only in the cross docking facility for a very short duration before being shipped out.

In contrast, the other options involve different processes that do not align with the principles of cross docking. For instance, permanent storage implies keeping products in a warehouse for an extended period, which is the opposite of how cross docking operates. Batch processing and sorting for long-term storage also suggest a focus on inventory management strategies that involve holding items longer and organizing them for future use, rather than immediate redistribution.