Supply Chain Management Professional (SCMP) · Question
What is the main benefit of implementing a 'cross-docking' strategy in a distribution center?
Cross-docking minimizes the time goods spend in storage by moving them directly from inbound to outbound transportation, reducing handling and storage costs.
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Question: What is the main benefit of implementing a 'cross-docking' strategy in a distribution center?
Answer options: ✅ Reduced storage costs and faster inventory turnover.
- Increased order picking efficiency for individual items.
- Enhanced security for high-value goods.
- Improved accuracy of inventory counts.
Correct answer: Reduced storage costs and faster inventory turnover.
Explanation: Cross-docking minimizes the time goods spend in storage by moving them directly from inbound to outbound transportation, reducing handling and storage costs.
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