Cross Docking in SAP Pavan Kumar Kulkarni (361787) ...........................................5 4.................................................3 4 Cross Docking in SAP warehouse management..................................................................... ................................................................3 Configuration Steps for One step cross docking............................................5 4.......................1 Benefits................................................................3 2 Features...5 Configuration for two step Cross Docking....................................... ....................2 One-Step Cross Docking:.............Contents 1 Introduction.. ....... ..... ........................................................................................................................................... .. ....................3 2.......................................1 Advantages of CrossDocking............................. ..4 4...........................6 4....8 4...... ...........10 .....................................................................7 Transactional Process...............4 Two-Step Cross Docking:......................... ..............................................9 4.2 Disadvantages of CrossDocking...........3 3 Types of Cross Docking.......................................................9 4...........................................................6 Cross-Docking Monitor..........3 2.......................... . 2. and the storage of inventory . 2 Features . to sort material intended for different destinations.. Reduces. Cross-docking operations may utilize staging areas where inbound materials are sorted. and stored until the outbound shipment is complete and ready to ship.. or to combine material from different origins into transport vehicles (or containers) with the same.1 Introduction Cross-docking is a practice in logistics of unloading materials from an incoming semitrailer truck or railroad car and loading these materials directly into outbound trucks. May increase available retail sales space. trailers. operating costs. This may be done to change type of conveyance. Products get to the distributor and consequently to the customer faster . . or similar destination. Reduces handling costs.. or eliminates warehousing costs .1 Advantages of Cross-Docking . Streamlines the supply chain from point of origin to point of sale ... or rail cars. with little or no storage in between. consolidated. or an adequate transport fleet to operate Cross-Docking . computer parts distributors can source their components from various vendors and combine them into one shipment for the customer..2 Disadvantages of Cross-Docking . The warehouse may receive the products and prepare sub-assemblies for the production orders. Potential partners don't have necessary storage-capacities . which is delivered to the customer when the final item is received. Companies will use the type of cross docking that is applicable to the type of products that they are shipping. Need of adequate IT-System 3 Types of Cross Docking There are a number of cross docking scenarios that are available to the warehouse management. • Manufacturing Cross Docking – This procedure involves the receiving of purchased and inbound products that are required by manufacturing. . For example. • Distributor Cross Docking – This process consolidates inbound products from different vendors into a mixed product pallet... • Transportation Cross Docking – This operation combines shipments from a number of different carriers in the less-than-truckload (LTL) and small package industries to gain economies of scale.2. In most cases the products sent from the manufacturing area to the loading dock has been allocated for outbound deliveries.jpg . items they sell each day of the year. Cross docking not only reduces material handling. This method was used by Wal-Mart in the 1980's. a customer sales order. • Opportunistic Cross Docking – This can be used in any warehouse. transferring a product directly from the goods receiving dock to the outbound shipping dock to meet a known demand.com/wp-content/uploads/2009/01/cross-docking. and large quantities products which is purchased once and sold by the stores and not usually stocked again. They would procure two types of products.e.• Retail Cross Docking – This process involves the receipt of products from multiple vendors and sorting onto outbound trucks for a number of retail stores.pwhfz. but may arrive as a purchased product that is being resold or being delivered from another of the company’s manufacturing plants for shipment from the warehouse. called staple stock. i. In some instances the products will not arrive at the loading dock from the manufacturing area. 4 Cross Docking in SAP warehouse management The term cross docking refers to moving product from a manufacturing plant and delivers it directly to the customer with little or no material handling in between. but also reduces the need to store the products in the warehouse. This second type of procurement is called direct freight and Wal-Mart minimize any warehouse costs with direct freight by using cross docking and keeping it in the warehouse for as little time as possible. http://www. Cross Docking Movements: When cross docking decision is made before material arrives. which helps improve customer satisfaction. After due configurations for one -step system process steps are. You need to create either Put away TO/Pick TO and then system checks the cross doc . as the products no longer requires picking and put away in the warehouse.2 One-Step Cross Docking: Movement process directly from the inbound goods-receiving area to the outbound goods issuing area. Reduction in the need for warehouse space... For one-step cross docking to be active. transferring a material directly from goods receiving dock to the outbound shipping dock. .. So there will not be any Cross-dock storage type required. as there is no requirement to storage the products.4. the movement can be processed as a one-step or two-step cross docking process. This can be a opportunistic cross docking.1 Benefits Many companies have benefitted from using cross docking. . Reduction in labor costs. 4.. Reduction in the time from production to the customer. Some of the benefits include: . check the configuration for the warehouse to ensure that the two-step cross docking indicator is not set. . and also updates in the document flow. This you can do without Cross dock monitor.config and cancel the TO and create a new TO from 902 to 916. LE..Define Special Movement Indicator.3 Configuration Steps for One step cross docking Material with this movement indicator can be directed to different interim storage type..com/erp2005_ehp_02/helpdata/en/4d/f48a3eacd49076e10000000 a114084/TEMPLATE_image002.Material. SPRO... .Master Data.gif 4.http://help..WM.sap. .Define search Sequence .Activate Storage type search.Master Data.LE.. Activate storage type search SPRO.WM...WM......LE..Interface..Material..Strategies.WM.Define Movement type This is used to ensure that reference movements with the special movement indicator can be assigned to warehouse movement types eg 968..LE..Define Storage type V_T3010 SPRO.SPRO. sap. 2) A transfer order from the cross docking storage type(XCD) to the goods issue storage type(916).com/erp2005_ehp_02/helpdata/en/32/47503e30a9d549e10000000 a114084/TEMPLATE_image002. If system active for two-step process.gif . the system will create two transfer orders: 1) A transfer order for the inbound delivery materials from the goods receipt storage type (902) to the cross docking storage type (XCD).4 Two-Step Cross Docking: When a link is created between an inbound and outbound delivery as part of a cross docking decision. http://help. 4.V_T334T With this config system will search for source storage types to pick the requested quantities. IMG> Logistics Execution> Warehouse Management> Cross Docking> General Setting> Maintain Warehouse Level settings. Warehouse Management . Define Storage Type 4.6 Cross-Docking Monitor Transaction: LXDCK or SAP> Logistics> Logistics Execution> Cross Docking> Cross Docking Monitor This process uses the cross-docking monitor. The next configuration step is to confirm that a movement type that is to be used for cross docking is set to allow cross docking. The CD Relevant indicator should be set for movement types to be used cross docking.4.5 Configuration for two step Cross Docking Configure for planned and opportunistic cross docking for the warehouse and the storage type. Logistics Execution . . Inbound delivery displayed in the cross doc monitor. Create a storage type relevant for cross docking. a tool to match incoming and outgoing materials. After logging onto the cross-docking monitor. Master Data . you will see the most current warehouse situation and can choose the warehouse in which to work as well as which documents to consider for cross-docking options. IMG> Logistics Execution> Warehouse Management> Cross Docking> General Setting> Define Cross-Docking Relevancy for movement Types. . Create outbound delivery. These cross-docking decisions may or may not be based on the system recommendation.. . .. If FIFO is important. Cross-docking decisions are carried out in normal processing within the warehouse..Outbound delevary in the cross doc monitor. Create inbound delivery.. Use the planning tool of the cross-docking monitor to analyze the crossdocking opportunities for selected planning documents and create cross-docking decisions. You can either accept the system-recommended decisions or view more details.7 Transactional Process . there is a configuration option to ensure FIFO rules are not violated. 4. . Plan with cross-docking monitor. .. Post goods receipt for inbound delivery. .. see the SAP Library under SAP R/3 Enterprise . .For more information on cross-docking planning. Create transfer order outbound delivery.. . Inbound Process . Logistics . A warehouse worker moves the relevant goods to the cross-docking storage type and confirms execution. Confirm transfer order for inbound delivery. Goods Receipt for Inbound Delivery . . Goods Receipt . Logistics Execution . Create transfer order for inbound delivery. Goods Receipt Posting. the decisions are executed. . A transfer order (TO) based on cross-docking decisions is executed in the same way as a standard TO. When the Transfer Orders are created... A warehouse worker moves the relevant goods to the cross-docking storage type and confirms execution. . When the Transfer Orders are created.. Post goods issue. . . the decisions are executed..A transfer order (TO) based on cross-docking decisions is executed in the same way as a standard TO. Confirm transfer order for outbound delivery.