What benefit does cross-docking provide in warehouse operations?

Cross-docking is a logistics practice that involves the direct transfer of products from inbound to outbound transportation, minimizing or eliminating storage time in the warehouse. The key benefit of this approach is that it speeds up order fulfillment by allowing products to be processed and shipped much faster than traditional warehousing methods, where items are stored for longer periods before being dispatched. This efficient process not only leads to quicker delivery times, enhancing customer satisfaction but also significantly improves inventory turnover rates. By reducing the time goods spend in the warehouse, cross-docking helps to minimize holding costs, which can be a significant expense for businesses. Therefore, the answer highlighting the speed of order fulfillment and inventory turnover best encapsulates the main advantages of cross-docking in warehouse operations.