Cross docking is a process in goods which are directly transported from receiving to shipping, without storing them in the warehouse first. Cross docking can realize a cost reduction by skipping put away and picking steps. It also reduces the need to store the products in the warehouse. This leads to a reduction in time and warehouse space.
Cross docking becomes a more and more important way of increasing speed and throughput in sectors like food, retail and pharmaceuticals.
Some advantages of cross docking are: