Cross-Docking and Extended Cross-Docking

Cross-docking in M3 identifies when stock being received is required for issue within a short time. It then directs the stock to the appropriate cross docking location instead of to the ordinary location. The triggers that cause cross-docking are demand in combination with a stock shortage.

Cross-docking results in an allocation to the demand order that caused the cross-docking.

The demands can be internal orders, external orders, or acquisition orders. Internal orders include material manufacturing orders, distribution orders, move orders, and requisition orders. External orders are customer orders. Acquisition orders can be manufacturing orders, purchase orders, distribution orders (receiving warehouse), and requisition orders (order category 40).

With extended cross-docking, you can automatically drive the outbound delivery further in the dispatch flow instead of stopping at having the goods allocated to the demand order. You can select which of the following picking list statuses the delivery should automatically receive after the extended cross-docking is performed:

The acquisition orders in extended cross-docking can be purchase orders and distribution orders.

Limitation

The extended cross-docking is not compatible with two-step put-away.

Outcome

Cross-docking is used to shorten the time between the receipt of goods and their dispatch and to avoid unnecessary administrative work such as unpacking and packing and reporting picking lists.

Before you start

Purpose

When

It directs the stock to the appropriate cross docking location instead of to the ordinary location.

How

M3 automatically selects defined cross-docking locations during goods receiving and allocates these goods to demand orders.

Workflow for what to cross-dock

  1. Look for reference order number connected to the acquisition order

    The cross-docking function first checks whether there is a reference order number connected to the acquisition order. If one if found, the system suggests putting that quantity in a cross-docking location in 'Cross-Dock Results. Open' (MWS160) when goods receiving is performed with cross-docking type 1.

    Short Description of Reference Order Number

    A purchase order, distribution order, or manufacturing order can be initiated from a customer order if there is a shortage when the customer order is created. Then the customer order number will appear as the reference order number on the acquisition orders. This also applies to other demand orders (manufacturing, distribution, and so on.) that create acquisition orders.

    Examples

    The following three scenarios trigger cross-docking when goods receiving is performed:

    Purchase to customer order (PTO). This is done for items that have acquisition code 2 on the (MMS002/E) panel.

    Manufacturing to customer order (MTO). This is done for items that have acquisition code 1 on the (MMS002/E) panel.

    Distribute to customer order (DTO). This is done for items that have acquisition code 3 on the (MMS002/E) panel.

  2. Look for preallocation connected to the acquisition order within the preallocation cross-docking time fence

    If there was no reference order number for the acquisition order, the cross-docking function checks whether there is a preallocation to be performed for the acquisition order line. Preallocation is done in 'Preallocation. Perform Detailed' (MWS121).

    If so, the system suggests putting that quantity in a cross-docking location in 'Cross-Dock Results. Open' (MWS160) when goods receiving is performed with cross-docking type 2.

  3. Look for demands in the material plan within the material plan time fence

    This is a scenario for cross-docking that is not planned. If there is no reference order number and no preallocation connected to the acquisition order, then it is not cross-docked automatically. However, the system looks for a demand (CO, RO) in combination with the material plan time fence and will suggest a cross-docking location in 'Cross-Dock Results. Open' (MWS160) when goods receiving is performed with cross-docking type 3.

  4. Suggest to send to cross-docking location

    In 'Cross-Dock Results. Open' (MWS160), the quantity to put in the cross-docking location is suggested. You can also change the location before you update using F14.

Workflow for where to cross-dock

  1. Look for an object control table

    These functions are designed to give maximum flexibility in selecting a cross-docking location. However, they are the most complex to set up so use them sparingly.

    The setup is done in two steps:

    1. Decide which objects or parameters control where you cross-dock to. This is done in 'Available Object Ctrl Parameters. Open' (CMS016).

    2. Decide which values for those parameters lead to which cross-docking locations. This is done in 'Cross-Dock Put-Away Selection. Define' (MWS130).

    You can specify multiple sets of rules, which are checked in priority sequence. This enables you to enter, for example, one set of rules for each type of order (customer order, manufacturing order, and distribution order). You then enter the locations for different combinations of values.

  2. Look for a loading platform (Only when using transportation planning)

    If no object control tables are found to match the stock entrance being performed, then the program searches for a loading platform.

    If you use transportation planning, you will plan to load the shipment from a loading platform. Each loading platform can be assigned to a cross-docking location in 'Loading Platform. Open' (DRS016).

  3. Look for a cross-docking location per warehouse/item combination

    If no valid loading platform for cross-docking is found, or if transportation planning is not in use, then the docking/packing location in 'Item. Connect Warehouse' (MMS002) is used.

  4. Look for the default cross-docking location defined per warehouse

    If no valid location is found in (MMS002), the cross-docking location entered in 'Warehouse. Open' (MMS005) is used. This is set in (MMS005/G) and is a mandatory field if cross-docking is allowed for the current warehouse.

  5. Suggest to send to cross-docking location

    In 'Cross-dock Results. Open' (MWS160), the quantity to put in the cross-docking location is suggested. You can also change the location before you update using F14.

Extended cross-docking

As described earlier, the result of cross-docking is that the goods become allocated to the demand order. However, to complete the outbound dispatch flow the regular dispatch activities (picking list printing, packing, pick reporting) must then be done before the goods are considered as issued. In an extended cross-docking scenario where the goods are moved from the inbound trailer directly onto the outbound trailer, those additional activities add unnecessary administrative processing.

With extended cross-docking, you can automatically drive the outbound delivery further in the dispatch flow instead of stopping at having the goods allocated to the demand order.

You can configure the system so that the outbound delivery is taken to picking, packing, docking, or all the way through issue.

You can trigger extended cross-docking at goods receiving by:

In addition, you can transfer the package information from the inbound to the outbound delivery in order to eliminate time-consuming and costly repacking and relabeling activities. This is also a key enabler for package-based RFID handling.

Extended cross-docking order types

Extended cross-docking for inbound deliveries (acquisition orders) can be used for purchase orders and distribution orders.

Extended cross-docking for outbound deliveries (demand orders) can be used for customer orders, distribution orders, and requisition orders.

Limitations for extended cross-docking

Package-based and delivery-based extended cross-docking is only processed if all lines are cross-docked to the same delivery.

Note: Currently, package-based and delivery-based goods receiving is only introduced for distribution order receiving. Considering that a ship-via scenario typically involves a purchase order on the inbound delivery side of the cross-docking process, a requirement is to introduce package-based and delivery-based purchase order receiving.

Line-by-line extended cross-dock: Extended cross-dock is executed directly for each received line. Because of this package information cannot be transferred to the outbound delivery the line is cross-docked to.

Package-by-package extended cross-dock: Extended cross-dock is executed package by package. This means that the entire package on the inbound delivery must be cross-docked to the same outbound delivery for extended cross-dock to occur. When this condition is met the package information can be transferred to the outbound delivery.

Delivery-by-delivery extended cross-dock: Extended cross-dock is executed delivery by delivery. This means that the entire inbound delivery must be cross-docked to the same outbound delivery for extended cross-dock to occur. When this condition is met the package information can be transferred to the outbound delivery.

Related topics