Cross – docking is very widely used in today’s supply chain. There are different variants of cross docking. Recently, I worked on a specific business requirement (on Title of ownership of goods while moving goods from one warehouse to another) for a customer. SAP Transportation cross docking(TCD) meets the requirement and my present blog is to explain the same highlighting its unique features.
That Customer has several plants producing several products and they have intermediate warehouses where the products are consolidated and then delivered to the customer as depicted in below image. One of the main requirements is that the title of ownership of the products will still be with the manufacturing plant 1010 while the products are physically at the intermediate warehouse D002 (linked with plant 2010). Standard SAP’s transportation cross docking (TCD) flow with EWM supports this requirement on title of ownership (as explained later in this blog).
A high-level process flow for TCD is depicted in below image.
and described as below.
1. An outbound delivery is created in ERP (ECC or S/4HANA). This outbound delivery can be created from a Sales order (or Stock transfer order). Outbound delivery 80002978 created for customer / Ship to party (10100001) from plant 1010 with Storage location DAFS.
2. This ERP outbound delivery gets distributed to decentralized EWM and creates an Outbound delivery order with same number 80002978 for warehouse D001. Note that it has a route TCD_ROUTE1 with Ship to party BP2010 and final ship to party as 10100001 (i.e goods will first be moved to an intermediate warehouse with BP2010 and finally to customer 10100001.
Route TCD_ROUTE1 is a part of TCD route TCD_ROUTE which has 2 legs. First leg corresponds to the flow from plant 1010 (warehouse D001) to intermediate warehouse D002 and second leg corresponds to the flow from the intermediate or Cross docking warehouse D002 to the customer 10100001.
Outbound delivery order is picked and packed with a handling unit as in below image.
Normal EWM process is followed to trigger goods issue which creates EWM outbound delivery order updating the ERP outbound delivery with the handling unit number and posting goods issue.
3. Goods issue on the original ERP outbound delivery 80002978 triggers output CDOD which creates a delivery pair – Inbound 180001033 and outbound delivery 80002979 as shown in below image from the Transportation cross docking monitor.
4. ERP Inbound delivery 180001033 is created for the intermediate warehouse (D02) with plant 1010 and cross docking storage location (TCDO).
As the plant in the inbound delivery is 1010 (i.e the manufacturing plant), the title of ownership of the goods lies with the manufacturing plant (This is one of the major requirements for the customer and one of the best features of TCD).
5. EWM inbound delivery 180001033 (as created from ERP inbound delivery) has the Owner as BP1010 is depicted in below image i.e the title of the goods will still belong to the manufacturing plant 1010 after goods receipt of the product in intermediate warehouse D002 (belonging to plant 2010).
Handling unit number is also transferred to this EWM inbound delivery from the original outbound delivery as shown in below image.
Goods receipt is carried out following the standard EWM process.
6. ERP outbound delivery 80002979 belongs to the warehouse D02 , but the title ownership of the goods is still with the manufacturing plant 1010 as shown in below image.
7. As expected the EWM outbound delivery order 80002979 also has the owner as BP1010 as shown in below image i.e title ownership of goods is still with the manufacturing plant though the goods are now in intermediate warehouse D002 (belonging to a different plant 2010).
Now goods issue is carried out on the EWM ODO as per the standard process and the title ownership is transferred to the customer 10100001 only after the goods are issued from the intermediate cross docking warehouse.
Now, like to highlight the salient features of this TCD flow
- This flow is possible only with decentralized EWM (i.e not with embedded EWM) as the routing with multiple legs (through EWM routing guide) is NOT supported in embedded EWM
- Title of ownership of goods belongs to the manufacturing (or original delivery) plant though the goods are physically present in intermediate cross docking warehouse (This is an unique feature with TCD)
- There can be multiple intermediate transporattion cross docking warehouses in the supply chain (considered only one intermediate warehouse in my blog for the sake of simplicity)
This prototype has been carried out with S/4HANA 2021 release (as ERP) with decentralized EWM on S/4HANA 2021 release. There is no custom coding i.e it is a pure standard SAP flow. Will appreciate your feedback / comments.
Source: https://www.linkedin.com/pulse/transportation-cross-docking-sap-extended-warehouse-management-roy/
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