There are several definitions of cross docking. According to Wikipedia, cross docking refers to a practice in logistics of unloading materials from a manufacturer or mode of transportation directly to the customer or another mode of transportation, with little or no storage in between. Cross docking takes place in a distribution docking terminal; usually consisting of trucks and dock doors on two (inbound and outbound) sides with minimal storage space. The picture below shows a simplified example of a cross docking process flow in a warehouse.
The supplier delivers the goods at the inbound area. Instead of the goods being put away to one of the storage locations, the goods go straight from the inbound area to the outbound area. Microsoft Dynamics 365 Supply Chain Management has a helpful function to support cross docking in the module Warehouse Management. What are the benefits of applying crossdocking for a company?
- Efficient goods movements because it is no longer necessary to store the goods in storage locations first. This also saves picking time for the warehouse employee.
- Faster throughput time of the orders. The goods can be delivered in a more efficient way and as a result, a company can deliver more goods and this way increase the cashflow.
Configuration
1. A cross docking template needs to be configured. In the cross docking template, you can configure the supply source as well as a few other important settings, e.g. the warehouse and location type. Other settings include the time windows for the time between the supply arrival and the demand departure. The supply sources setting is necessary for the system to determine whether the cross docking process concerns a transfer or purchase order.
2. A work class with work order type ‘cross docking’. Work classes are used to direct and/or limit the type of work order lines that a warehouse worker can process from a mobile device.
3. A work template for the creation of the cross docking work. Both the work order type and work class should be set as ‘Cross docking’.
4. A location directive for work order type Cross docking. Via the location directive, the system can determine the outbound location.
5. The purchase put away menu item must contain the work class cross docking.
Demonstration
1. A sales order with 10 Jabra speakers.
2. Creation of the purchase order.
Note: the purchase can be generated in several ways, e.g. Planning Optimization.
3. Release to warehouse. When you release the sales order to the warehouse, Dynamics creates a cross docking link between the sales and purchase order.
Note: the release to warehouse can also be enabled by an automatic batch process on the background or via the release-to-warehouse form.
4. A warning message will appear, but this warning message can be ignored.
5. When you click on the Shipment details of the sales order line, you can see the cross docking link.
6. The purchase order is received via the Warehouse management app. By clicking on the inbound menu item, the mobile device shows the purchase receive menu item.
7. The purchase order number, item, and quantity can be scanned and entered via the menu item purchase receive.
8. Entering the purchase order number and clicking on the confirm button for confirmation of the purchase order.
9. Scanning the item number and clicking on the confirm button for the confirmation of the item number.
10. Confirmation of the entered information.
11. The warehouse management app detects the cross docking link and proposes the outbound location instead of a storage location as the ‘put away location’. Clicking on the confirm button to confirm the put action to the ship location.
12. Posting of the purchase order product receipt.
13. From the sales order, it can be seen that the cross docking work has been processed using the work order type cross docking.
14. In the ‘shipments ready to ship’ form the shipment is shown. From this form the shipment can be opened.
15. The shipment is confirmed, and the packing slip is posted.
16. The sales order status has been changed into delivered.
