What is 'cross-docking'?

Cross-docking refers to the logistics practice of transferring goods directly from inbound transportation to outbound transportation with minimal handling and no significant storage time in between. This approach is designed to streamline inventory flow and reduce storage costs, as products are moved quickly through the supply chain rather than being held in a warehouse for longer periods.

By efficiently coordinating the arrival and departure of shipments, cross-docking helps to maintain the movement of goods, meet customer demands rapidly, and optimize supply chain efficiency. In essence, it minimizes the time products spend in a warehouse, allowing for a more agile and responsive supply chain setup.

The other options describe various inventory management techniques or processes but do not capture the essence of cross-docking. Record-keeping is crucial for inventory control but does not pertain to the movement process. Sorting products in a warehouse is a different procedure focused on organization rather than transportation, and dividing inventory into smaller shipments is related to order fulfillment but does not encompass the full concept of cross-docking.