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What is Cross-docking?

Cross-docking: Moving goods straight from inbound to outbound trucks.

Where Cross-docking fits

Cross-docking is part of Logistics in Supply Chain. Logistics moves goods from supplier to customer: procurement, warehousing, freight and last-mile delivery. Safety stock guards against surprises; just-in-time cuts inventory.

Practical tip

Balance service level against holding cost.

Related terms

Supply chain
The network that moves a product from raw materials to customers.
Just-in-time
Receiving goods only when they are needed, to keep stock low.
Lead time
Time between placing an order and receiving it.
Procurement
The process of finding and buying what a business needs.
Safety stock
Extra inventory kept to avoid running out when demand or supply surprises you.
Inventory
Goods a company holds to sell or use.
Warehouse
A building used to store goods.
Distribution center
A facility that receives goods and ships them to customers.

Formulas you will use with it

Economic order quantity (EOQ)Reorder pointSafety stockTakt time (min per unit)

Test yourself

Which term means: “Moving goods straight from inbound to outbound trucks.”?

Cross-docking · Lead time · Procurement

Answer: Cross-docking

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