Stand Out Item Handling with Cross-docking in Business Central

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Cross Docking

Summary: This write-up talks about Cross-docking functionality in Dynamics 365 Business Central, its benefits and types, and the way an accredited Business Central Solution Provider has helped a renowned business scale up and increase operational efficiency.

In manufacturing, cross-dock items are products or goods you receive and ship without putting them away. Here, it means that put-away and pick processes require limited handling of goods or items. For the most part, production units leverage the cross-docking process to minimize warehousing activities and labor. Cross-docking in WMS immediately transfers freight from one mode of transportation to another at the docking facility, helps deliver cost savings, and ascertains faster fulfillment time.

Types of Cross Docking

  • Opportunistic cross-docking
  • Cross-dock production
  • Transport Cross-Docking
  • Retail Cross-Docking
  • Supplier Cross-Docking

Essentially, a cross-docking warehouse removes the ‘storage’ link of the supply chain. For instance, when products are unloaded from a truck or railroad car, and sorted, they are directly reloaded onto outbound trucks or rail cars to continue their journey and save storage time.

Primary Advantage of Cross-Docking

One of the key advantages of cross-dock logistics is that it allows greater throughput without the requirement of opening up a new warehouse. As items or goods spend little to no time in your warehouse, costs associated with handling and storage eventually get reduced and production planners can expedite deliveries.

Improved Inventory Control

With cross-docking in Business Central, manufacturing businesses can substantially reduce the need for large inventory holdings, which frees up valuable square footage. Eventually, it reduces the need for inventory and lowers holding costs. This way, manufacturers can liberate your capital from the confines of the warehouse and allow you to re-invest in growth-focused endeavors.

Quick Turnarounds

Cross-docking in WMS elevates the speed game. By leveraging the core capabilities of Dynamics 365 Business Central, one can ensure minimal downtime as products or goods swiftly move from point A to point B. This operational speed not only ascertains instant deliveries but also becomes a unique selling proposition that differentiates you from your fellow businesses.

Additionally, you can make the most of this speed advantage to adapt swiftly and respond effectively to evolving market changes.

Save Warehousing, Shipment, and Labor Costs

By transforming the warehouses into streamlined, multipurpose terminals, cross-dock logistics notably reduces the space required for warehousing activities. Eventually, this leads directly to a reduction in rent costs and lowers recurring expenses like electricity, air conditioning, and heating.

Then, cross-docking in Business Central directly addresses the central issue of high warehousing costs. For the most part, cross-docking delivers a substantial financial advantage and makes it a crucial strategy for cost-sensitive logistics operations.

Additionally, it consolidates shipments and reduces both the number of trips and associated fuel expenses.

Cross-Docking in Dynamics 365 Business Central

Benefits of Cross-Docking in Dynamics 365 Business Central

By deploying the cross-docking feature in Dynamics 365 Business Central, business administrators can enjoy a variety of business benefits.

  • Decreased Inventory Holding Costs— Businesses in manufacturing can significantly lower their inventory carrying costs, as goods or items spend less time in storage.
  • Streamlined Operations—The time between receiving an order and fulfilling it gets effectively reduced. This leads to increased customer satisfaction and improved service.
  • Vendor and Customer Relationships—Efficient and upgraded supply chain processes help improve your relationships with vendors and customers.
  • Data-Driven Decision-making— The integration of AI and machine learning renders advanced analytics and reporting tools. You can make the most of it to gain valuable and actionable insights into operational performance.

Case Study: How NavisionIndia Helped A Pharma Compay Optimize Cross-Docking with Microsoft Dynamics 365 Business Central?

Client Profile: Our client or customer is a reputable pharmaceutical company known for its high-volume delivery products. Facing issues handling and tracking the delivery of the products due to high volumes. They needed real-time visibility so that they could make prompt decisions.

Client challenges and requirements

Client Pain Points
  • Extended cross-docking processing times.
  • Inefficiencies in handling and tracking cross-docked inventory.
  • Lack of real-time visibility into cross-docked inventory.
  • Difficulty in making timely decisions for order fulfillment.
  • High error rates in cross-docking order processing.
  • Customer dissatisfaction due to inaccuracies.
  • Concerns about disruptions during the integration process.
  • Need for seamless integration with existing cross-docking systems.
Requirements
  • Streamlined cross-docking processes.
  • Reduction in handling time.
  • Improved efficiency in cross-dock inventory tracking.
  • Real-time tracking of cross-docked inventory.
  • Visibility into stock levels and movement.
  • Timely information for efficient order processing.
  • Improved accuracy in cross-docking order processing.
  • Minimization of errors in the cross-dock fulfillment process.
  • Automation of order processing workflows.
  • Customized integration with current cross-docking systems.
  • Minimal downtime during the implementation.
Solution Provided

Implementation of Microsoft Dynamics 365 Business Central with cross-dock feature:

  1. Decision-Making Process:
    1. Detailed analysis of the client’s cross-docking requirements and pain points.
    2. Evaluation of various solutions, with Business Central, identified as the optimal choice.
  2. Cross-Docking Process Optimization:
    1. Utilization of Business Central’s warehouse management features.
    2. Streamlined cross-docking processes, reducing handling time by 90%.
    3. Improved efficiency in cross-dock inventory tracking with real-time updates.
  3. Real-time Inventory Tracking in Cross-Docking:
    1. Configuration of real-time inventory tracking functionalities.
    2. Implementation of inventory optimization algorithms for cross-docked items.
    3. Dashboard for immediate visibility into cross-docked stock levels and movement.
  4. Order Processing Automation in Cross-Docking:
    1. Utilization of Business Central’s order processing capabilities.
    2. Automation of order workflows, minimizing manual errors in cross-dock fulfillment.
    3. Improved accuracy in cross-docking order fulfillment, resulting in a 95% reduction in errors. 
  5. Customized Integration with Existing Cross-Docking Systems:
    1. Custom development to ensure seamless integration with existing cross-docking systems.
    2. Rigorous testing to minimize downtime during implementation.
    3. Ongoing support and updates to maintain compatibility with the client’s cross-docking technology stack.
Benefits Realized
  1. Cross-Docking Efficiency Gains:
    1. 90% reduction in cross-docking processing time.
    2. Improved overall efficiency in cross-docking operations.
  2. Increased Accuracy in Cross-Docking:
    1. 95% improvement in order accuracy and fulfillment speed in cross-docking.
    2. Enhanced customer satisfaction due to accurate cross-dock orders.
  3. Cost Savings in Cross-Docking:
    1. 70% reduction in carrying costs for cross-docked inventory.
    2. Better inventory management leads to cost savings in cross-docking.

Conclusion:

The implementation of Microsoft Dynamics 365 Business Central has successfully transformed clients’ cross-docking operations, addressing complexities and delivering tangible benefits. The solution has streamlined processes, improved accuracy, and resulted in significant cost savings in cross-docking operations.

At NavisionIndia, you can connect to highly skilled and certified Business Central Consultants and make the most of their expertise, experience, and industry standard-based practices to top the chart of thriving Manufacturers. We deploy a team of highly acclaimed Business Central Consultants to help growth-seeking production units execute their vision efficiently.

For more details, write to us at info@navisionindia.in Or Schedule A Demo