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The acts of receiving shipments, breaking down shipments, repackaging shipments, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as?

1) Piggy backing
2) Crossdocking
3) Transshipping
4) Customs Brokering

1 Answer

4 votes

Final answer:

The process in question is known as crossdocking, which streamlines the supply chain by reducing storage and handling requirements, especially utilitarian in globalized trade where efficient transport modalities, like cargo ships, are essential.

Step-by-step explanation:

The process of receiving shipments, breaking down shipments, repackaging them, and distributing components to a manufacturing location or finished products to customers by a distribution center is referred to as crossdocking. This logistic procedure reduces material handling, storage requirements, and helps in streamlining the supply chain from point of origin to point of sale. With crossdocking, products received at the warehouse are not stored; they are immediately prepared for shipment to the next destination. This is an efficient distribution method, especially when considering globalized trade, where cargo ships play a significant role. Proximity to uncrowded freeways and the availability of rail or water transport options can further optimize transport efficiency and cost-effectiveness in crossdocking operations.

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