Thursday, March 10, 2011

Crossdocking in Oracle WMS

It has become vital for every business that has to deal with necessary evil of inventory management to maximize inventory turns and have less of stock to manage. Crossdocking functionality in Oracle WMS allows warehouses to improve its operational efficiency by transferring material as soon as it's received to outbound location. In the process, it avoids the inventory holding function thereby reducing the cost of inventory management

Businesses also want to ship products as soon as its manufactured to avoid managing finished goods stock at their warehouses and invoice the customers earlier (i.e. ship early, Invoice early). This also can be achieved using Crossdocking & you can call it "Direct shipping with Cross docking" If we have back-ordered Sales Order demand line and the WIP Job gets completed to a LPN, task would created to deliver the products to the staging to ship it "directly". 

On similar lines, Oracle WMS routes products directly from the receiving dock to a staging lane without placing product into a put away location.  Before choosing a warehouse put away location, Oracle WMS attempts to supply any sales order demand from the staged receiving supply.  As a result, unnecessary material handling and movement are reduced, which, in turn, helps reduce operational costs and streamline the order fulfillment process.

Remember, Cross docking must be enabled in the organization

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