Cross Docking:

A practice in the 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. This may be done to change the type of conveyance, to sort material intended for different destinations, or to combine material from different origins into transport vehicles (or containers) with the same destination or similar destinations. Advantages of retail cross-docking include:

·        Streamlines the supply chain, from point of origin to point of sale
·        Reduces labor costs through less inventory handling
·        Reduces inventory holding costs by reducing storage times and potentially eliminating the need to retain safety stock
·        Products reach the distributor, and consequently the customer, faster
·        Reduces or eliminates warehousing costs
·        May increase available retail sales space
·        Less risk of inventory handling