Cross Docking

[Former Member]

Hi,

Can someone tell me the best practice for this scenario below?

An Order is created in a plant. Since the delivery quantity is at minimum, upon delivery, the truck will cross-dock in another plant (to pick up other deliveries - to save cost). the Delivery will stay in the plant for 1-2 days. At that point, warehouse will check status of the goods in the cross-dock plant. If there are some bad stocks due to "trucker", delivery quantity will be changed. truck proceeds to deliver the goods to customer. then invoice. Trucker pays for the damaged goods.

My question is,

=> upon departure at the first plant, I will already do the goods issue?

=> upon docking at the second plant, how can i receive the goods? (for monitoring purpose)

=> how can I adjust the damaged goods, and charge them to trucker?

Cheers

[Former Member]

Hi,

I'm not sure I understood your process requirements fully. But my experience with x-docking is following:

1. Order to the final customer is created - for plant A

2. For the products not available in initial plant there is STO (Stock Transfer Order) created to replenish the products between plants (B->A). Here we created custom solution to automatically create this STO for corresponding products and date (delivery date of STO to be equal to pickup date from initial order at plant A)

3. Once the goods arrive from plant B to plant A there is pickup and goods issue process in plant A.

4. The rest is standard, since we have all the stock available in A.

Regards,

Dominik Modrzejewski

[Former Member]

Hi Dominik,

Thank you for your reply.

The reason we crossdock is to save delivery cost.

It is possible, only upon creation of delivery, will we know that it is passing to another plant (B).

For example, if delivery quantity is only 50cases, then to maximize truck capacity, we have the truck pass to another plant to pick up other goods.

Upon arrival to the other plant, warehouse man checks the status of the other deliveries. If packaging are found in bad condition, we remove them from the truck and do not deliver to customer.

How then can we adjust the quantity in plant A? and the invoice too? Is it best practice to use VL09? or create return order, then issue both invoice and CM to customer?

[Former Member]

Hi,

In this situation I would say that it depends on the party responsible for transportation. If is is customer (eg. EXW incoterms) then you would obviously like to show this to the customer with credit memo. So that you can claim the customer or the carrier.

However I believe in your situation it is the sending company managing transport. Then you would probably not like to share with the customer that 'your' transport was damaged and have the returns/credit memo processes. Although that is what should happen ideally.

Alternative is to have VL09 and create 'correct' delivery for the customer. But here I would definitely recommend strict reason codes describing what happened and why the delivery quantities are cut. So that reporting and claiming process will work properly.

Regards,

Dominik Modrzejewski