Defining Cross Docking

To set up cross docking for items:

1. Enable cross docking at the business unit level by selecting the Cross Dock check box on the Setup Fulfillment page.

   Cross docking is used for all items in this business unit unless you disable it for individual items using the Setup Item Fulfillment page.

2. Enable cross docking for individual items by selecting the Cross Dock check box on the Setup Item Fulfillment page.

   The default value comes from the Setup Fulfillment page. You can also define the reservation lead days to be used for calculating open demand for cross docking (cross dock lead days) and the minimum stock quantity of this item to be put into the cross docking location.

3. Identify the storage locations to be used as cross dock locations for the business unit and item.

   Enter cross dock locations at the business unit level using the Default Cross Dock Locations page. If no item-specific cross dock locations are identified, the system uses the business unit level. At the business unit level, you should identify locations for both owned and non-owned stock. To identify item-specific cross dock locations, use the Default Putaway Locations page. One item can have both an owned cross dock location and a non-owned cross dock location. The storage locations that you select for cross docking should not be defined as inspection locations on the Material Storage Locations page.

   Important! Do not use the same storage locations as both cross dock locations and default putaway locations for an item.

The Load Staged Items process determines when receipts should be placed in the cross dock location and when receipts should be placed in the putaway locations per the putaway setup rules. This process moves receipts from the staging interface table (STAGED_INF_INV) to the putaway staging table (STAGED_ITEM_INV).

When the Load Staged Items process receives an item that has been defined as a cross dock item, the process determines if some or all of the receipt quantity should be placed on the item's cross dock location by calculating open demand for the item. If open demand exists for the item, the Load Staged Items process places enough stock to fulfill the demand in the cross dock location. You can define a minimum stock quantity for each item so that the system maintains stock in the cross dock location regardless of open demand. The Load Staged Items process uses the following rules when cross docking:

• If a receipt in the staging interface table already has a defined location or a container that is in a location with a quantity greater than zero, the Load Staged Items process does not override this location for cross docking.

  The process determines whether the item is a cross dock item with open demand only if the location is blank or if the record has a container specified that does not already exist in a physical location.

• When placing stock into an item's cross dock location, the Load Staged Items process does not consider capacity checking and single item restrictions for the storage location.

• A receipt that is identified as either owned or non-owned can only be put into a cross dock location with a matching designation.

• Any cross dock location identified at the business unit level (on the Default Cross Dock Locations page) should not be marked as a single item location.

  If a location is identified as the cross dock location for more than one item, even if the location is defined as a single item location, the Load Staged Items process stages multiple items to the same location.

• When the Load Staged Items process performs directed putaway, the Fixed Picking Bin, Container, Existing Item, Random Location, and Empty Location rules exclude cross dock locations from consideration in selecting potential locations for staging.

  This prevents a partial staging to a cross dock location and then another partial staging to the same location through directed putaway.

• If an item requires inspection, you cannot put it into a cross dock location.

  If you define an item as both cross docked and requiring inspection, the system puts the stock into an inspection location.

The Load Staged Items process determines how much of the received quantity should be cross docked. The cross docked quantity is the greater of the item's minimum stock quantity or the item's current open demand. The system puts any remaining receipt quantity into a putaway location based on the putaway default location or putaway rules.

Determining open demand for an item is a key factor in determining how much stock should be placed in the cross dock location during the Load Staged Items process. Cross docking's open demand is defined as the total requested quantity for an item minus the quantity already reserved at a storage location level and minus the available quantity in the cross dock location. The result is the quantity required in the cross dock location to meet the short-term demand for the item. The system uses the cross dock lead days defined during fulfillment setup to determine the time frame for calculating total requested quantity. The cross dock lead days can be adjusted for closed days based on the Use Closure Calendar check box on the Setup Fulfillment- Reservation page.

The system calculates open demand like this:

• Unreserved Demand: Add the sum of the net requested quantities for approved, not yet reserved orders within the cross dock lead days time period for the item.

  Lot allocated orders are not included in unreserved (unfulfilled) demand because the order is allocated to another location.

• Reserved Demand: Add the sum of the net requested quantities for soft-reserved orders within the cross dock lead days time period for the item.

  Lot allocated orders are included in reserved demand.

• Allocated Demand at the Material Storage Location Level: Subtract the sum of demand quantities already allocated at the material storage location level for the current orders.

  The calculation of allocated quantity includes only demand lines for items that were set to the released state by the Order Release process using an action of Create Allocation (push pick plan) or recorded as picked from a material storage location on the Material Picking Feedback page. Demand lines that were set to released state by the Order Release process without an allocation (pull pick plan) have not yet been allocated at the materials storage location level and do not reduce open demand. Lot allocated orders are included here.

• On Hand at Cross Dock Location: Subtract the sum of the available quantity at the cross dock location.

  This is calculated as the total onhand stock minus the allocated quantities at the cross dock location level for current orders.

  Note: Location on hand and allocated quantities must be determined for both the owned and the non-owned cross dock locations if both are defined. The owned status of the putaway item is not relevant to the open demand calculation.

• Staged Cross Dock Quantity: Subtract the sum of the quantities in the putaway staging table (STAGED_ITEM_INV) that are assigned to be placed in the cross dock location.

  Note: When the Load Staged Items process has been run but the Complete Putaway process has not yet been run, the open demand calculation takes into account the quantity in the putaway staging table (STAGED_ITEM_INV) that is coded to be placed in the cross dock locations. However, the calculation does not include the quantity in the staging interface table (STAGED_INF_INV) that is coded to use the cross dock locations but has not yet been processed by the Load Staged Items process.

Unreserved Demand plus Reserved Demand less Allocated Demand at the Material Storage Location represents the net demand quantity not yet allocated at the material storage location level. This quantity is compared to the cross docking item's minimum stocking quantity, if one was entered on the Setup Item Fulfillment page, and the greater of the two values is used in the rest of the calculation in determining the open demand quantity.