What means cross-docking in logistics?

Cross-docking is a logistics strategy where goods are not stored, but rather immediately forwarded. Missing goods for outbound orders can be requested even while still in inbound, allowing direct transfer to outbound staging or immediate-use locations.

Types of cross-docking:

• One-step cross-docking: Supplier pre-picks goods and labels them for the final customer.
• Two-step cross-docking (transshipment): Goods are received at a distribution hub, picked there, and sent to the customer.
• Multi-step cross-docking: Involves additional processes and system integrations.

Main benefits:

• reduced storage costs
• ideal for high-volume distributors
• faster delivery times and shorter lead times