What is "cross-docking" in logistics?

Cross-docking is primarily defined as a practice where incoming shipments are transferred directly to outbound trucks with minimal or no storage time. This logistics strategy allows for increased efficiency as it streamlines the flow of goods from suppliers to customers without the need for prolonged warehousing. The primary goal of cross-docking is to reduce handling and storage costs, expedite the delivery process, and minimize inventory holding, making it an essential practice for just-in-time inventory systems.

In contrast, other options reflect different logistics strategies or practices. Maintaining large inventory levels and storing goods for extended periods are contrary to the principles of cross-docking, as they involve holding onto inventory rather than facilitating immediate transfer. Combining multiple shipments into one can be part of overall logistics management but does not specifically define the cross-docking process, which focuses on the rapid transition of goods from incoming to outgoing transport without significant delay.