Cross-docking is the act of transferring goods directly from an incoming receipt to an outgoing order without putting the stock away. Obviously, cross-docking can improve your inventory turns, reduce material handling costs, and improve customer satisfaction through the quicker delivery of orders.
So how can you cross-dock with Dynamics GP. The first step is to begin using the Backordered Items Received report. This report prints out when a purchasing receipt is posted and lists all the items on the receipt that are backordered on a sales order. This is a step in the right direction but the report has a couple issues:
1. It only prints after the receipt is posted. Many companies do not post receipts until the goods are put away to keep the bin quantities accurate.
2. It is a paper report. Are your receiving people realistically going to print and review a paper report after they post the receipt?
A more proactive approach can be implemented using the purchase order dates discussed in an earlier post. If you know the expected receipt date of an item, you can create a report or smartlist showing items expected in the next few days that are also backordered sales order items. This report or smartlist can be posted daily in the receiving department to alert personnel to cross-docking opportunities.
As I final note, I would suggest that if you do not have some cross-docking opportunities, you are carrying too much inventory. You cannot afford to have everything your customers want in stock at all times. But that is another post…
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