Cross-docking is a supply chain strategy where incoming products are transferred directly from receiving to shipping with minimal or no storage time. Products spend less than 24 hours in the facility.
Walmart pioneered cross-docking, using distribution centers as transfer points rather than storage warehouses. Products arrive from suppliers and are immediately sorted and loaded onto store-bound trucks.
Cross-docking is particularly effective for perishable goods, high-demand products, and pre-sorted shipments. It reduces storage costs, speeds delivery times, and minimizes inventory holding expenses.