What is Cross Docking?
Cross Docking is a phenomenon where in the incoming shipment is received but not stored, and directly sent for shipping.
In other words, the incoming trucks are directed to the outbound dock doors where the goods are loaded to the outgoing trucks meant for shipment.
Why do we need Cross Docking?
Cross docking can lead up to financial savings in logistics and inventory. It can bring reductions in Supply Chain Lead Time.It’s always a trade-off between certain parameters as depicted below. Oracle WMS presents this feature in a very simple way and is easy to implement.
Oracle WMS enabled Cross docking is used to achieve faster flow-through times and optimize warehouse resources.
Process
Cross Docking as in Oracle WMS
Oracle WMS Cloud has the ability to cross-dock inventory during the receiving process. It supports two different receiving methods:
1. Receive cross-dock with an existing order. Here we know there is a sales order demand already exisiting and upon receiving the shipment,
its directly cross docked to the outbound staging location for shipping.
2. Receive cross-dock with an order automatically created for that LPN. Here based on the company and facility settings, upon receiving the
shipment, a corresponding order is created and ready to be shipped.
Factors driving an efficient Cross Docking
1. Material handling Systems
2. Regular Audits
3. Proper and effective communication
4. Cross Dock specific LPNs
5. Accurate Shipments
6. Accurate Labelling
Industries using Cross Docking
1. The companies handling a wide variety of product lines
2. High-value, high-security goods
3. Perishable, and temperature-controlled items
4. Fast moving goods
Challenges
1. Unexpected customer demand
2. Supplier Reliability
3. Facilities Layout
4. Current Market Demand
5. Resource Management
Why Oracle WMS Cross Docking
1. Easy to understand and implement
2. Simple and Robust
3. High Performance delivered
Cross-docking is definitely an usable strategy for those companies which are interested in maintaining lower costs, high
operational efficiencies and improving service levels. The use of this practice is being taken up by more and more companies
and its expanding continuously for a wide range of product lines.Oracle WMS has been a successful product and has helped numerous
industries across verticals and one of the highligh has been the Cross Docking functionality.
