What is cross-docking in logistics?

Cross-docking is specifically defined as a logistics technique where products are directly transferred from inbound shipping to outbound shipping, with minimal or no storage time in between. This method streamlines the supply chain process by reducing handling and storage costs, as goods are quickly sorted and moved to their final destination without being stored in a warehouse. By doing so, cross-docking enhances the efficiency of inventory management and speeds up delivery times, allowing companies to respond faster to customer demands.

The other choices do not accurately describe cross-docking. Managing warehouse inventory refers to stock control and organization within a warehouse, rather than the immediate transfer of goods characteristic of cross-docking. Bulk purchasing is a different strategy focused on procuring large quantities from suppliers, which isn't related to the logistical flow of goods. Likewise, product customization before shipment involves modifying products to meet specific requirements, which is separate from the concept of efficiently moving goods through a distribution channel without significant storage.