Supply Chain Management Professional (SCMP) · Question
What is the primary advantage of utilizing cross-docking in a distribution center?
Cross-docking aims to move products directly from inbound to outbound logistics, minimizing or eliminating storage time and handling.
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Question: What is the primary advantage of utilizing cross-docking in a distribution center?
Answer options:
- Increased inventory holding costs
- Reduced labor costs due to no unpacking ✅ Elimination of storage and reduction of handling
- Enhanced product customization capabilities
Correct answer: Elimination of storage and reduction of handling
Explanation: Cross-docking aims to move products directly from inbound to outbound logistics, minimizing or eliminating storage time and handling.
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