What is the main purpose of cross-docking in supply chain operations?

The primary purpose of cross-docking in supply chain operations is to reduce inventory holding costs. Cross-docking is a logistics practice that involves unloading materials from an inbound vehicle and directly loading them onto outbound vehicles, with minimal to no storage in between. This process streamlines the flow of goods, allowing for a quicker turnaround and reducing the need for warehousing space.

By minimizing the time products spend in a warehouse, cross-docking effectively decreases inventory holding costs, which can include expenses related to storage space, handling, and potential obsolescence of goods. Consequently, this practice contributes to increased efficiency in the supply chain by ensuring that products move swiftly from supplier to customer.

The other options, such as storing products for long periods, conducting quality inspections, and improving product design, do not align with the main objectives of cross-docking. Instead, these activities generally involve longer durations of product handling and management, which are contrary to the goals of this efficient logistics method.