More on-time deliveries with the use of cross-dock processes
Fulfilling the requirements of the
booming retail trade
Competition in retail trade is tough and intelligent IT systems contribute to retail companies’ success. With optimal design of warehouse processes from goods receipt to outgoing goods, SAP EWM can help, regardless of how many product variants there are.
After goods receipt and deconsolidation of products, the products can be stored. SAP EWM also supports return handling, so that essential success factors such as cost transparency, short throughput times, and effective complaint management are a given.
In addition, retailers are forced to automate warehouse processes increasingly in order to further reduce costs. For example, picking stations connected by conveyor technology can consider goods from different warehouse areas or directly from goods receipt (using cross-dock processes) in picking.
SAP EWM offers many possibilities for handling cross-dock processes. For example, the decision in favor of a cross-dock process is made when executing goods receipt if delivery for a customer is expected and replenishment of the picking stations can be done faster by cross-docking the products. After removal from storage, the goods required for shipping are consolidated in the packing areas. Pre-packing processes are also supported; these allow the picking containers to be passed from area to area.
SAP EWM also supports comprehensive packing planning and can create plan-shipping HUs based on warehouse requirements. The need for plan-shipping HUs can be calculated by the ERP system and by SAP TM, which ensures efficient utilization planning of warehouse capacities. With the packing planning, shipping units are formed and then sent to the end customer. Integration scenarios with SAP TM and SAP LBN support module-spanning processes and collaboration with freight forwarders.
Challenges for retail
- Fluctuating customer needs force retail companies to maintain inventories
- Constant increase of retail trade
- Tough competitive pressure forces reduction of logistics costs
- Long processing of returns due to unclear information and material flows
- Complex warehouse processes cannot be mapped in all IT systems
- Completely or partially automated conveyor technologies are not controlled centrally by warehouse management systems
- Prices for end products are greatly influenced by logistics costs
- Lacking integrative processes and lacking collaboration possibilities with business partners