Why is cross-docking considered a valuable practice in logistics?

Cross-docking is considered a valuable practice in logistics primarily because it minimizes both handling and storage time. In this process, incoming products are directly transferred from incoming transportation to outgoing transportation with little or no storage in between. This streamlined approach reduces the need for warehousing, thus cutting down the time products spend in transit and minimizing the costs associated with storing inventory.

By limiting the amount of time goods are held before reaching their final destination, cross-docking enhances the overall efficiency of the supply chain. It allows for quicker delivery of goods to customers and reduces the likelihood of items becoming obsolete due to prolonged storage. This results in faster turnaround times and often leads to a more responsive and flexible supply chain operation.