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.
Companies get to direct product levels at a much more detailed level. This ensures each retail outlet gets exactly what it needs to meet customer demands, no more and no less.
Cross docking is often used for just-in-time manufacturing where supplies are delivered where they are needed as they are needed to ensure there is no excess storage of parts or products.
When properly implemented, this strategy can help keep a company's supply line more organized.
With less storage and warehousing, there is less need for people handling the products, which can help drive down labor costs.
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