Cross-docking is the process of moving goods straight from receiving to shipping to avoid unnecessary handling in a warehouse operation.
Execution of cross-docking can be planned or opportunistic. Opportunistic cross-docking occurs as part of the warehouse operation when outbound orders are matched with actual received quantities. This is often referred to as pick-on-receipt. Planned cross-docking is a pre-defined link between inbound and outbound, which directs what the warehouse should do.
Planned cross-docking is either defined by the host system or at the supply chain execution level. If done by the host, inbound order lines are linked to outbound order lines (including quantity required) through the inbound order.
On supply chain level, the cross-dock planning solution looks across nodes in the supply chain to determine which ASNs or inbound orders are to be cross-docked.
- Workbench for selecting inbound orders and ASNs and assign cross-dock links and quantities to outbound orders – automatically or by user decision
- Supports definition of cross-dock links on license (container) or order quantity level
- Maintain and release cross-dock links
- Configurable business rules for setting conditions for cross-dock proposals, including optional authorization steps
- User-defined rules can include criteria for which items are eligible for cross docking, how to select outbound order line candidates, and how to allocate quantities to order lines (e g consider customer priority when short of supply).
- Increased use of cross-docking reduces handling costs in warehouses
- Higher turnover rates and shorter lead time by better coordination of supply and demand
- Improved ability to deal with shortage situations and rationing decisions
- Use cross-dock planning to re-route goods in-transit in transportation hubs to match latest market demand