Certified Logistics Associate (CLA) Practice Test 2025 - Free CLA Practice Questions and Study Aid.

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What does cross-docking help reduce in the logistics process?

Inventory holding time

Cross-docking is a logistics practice that significantly reduces inventory holding time. In this process, incoming shipments are directly transferred from receiving dock to shipping dock without being stored in a warehouse. This minimizes the time that goods spend in inventory, allowing for quicker turnover and reducing the overall inventory carrying costs. It effectively streamlines the supply chain by eliminating the need for storage, aligning delivery schedules more efficiently, and ensuring that products move swiftly from suppliers to customers.

While cross-docking can also have secondary effects on transportation costs, labor requirements, and delivery times, its primary benefit is clearly the reduction of inventory holding time. This practice is particularly valuable in environments where rapid movement of goods is essential, such as in perishable goods, retail, and just-in-time (JIT) systems.

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Transportation costs

Labor requirements

Delivery times

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