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Merchandise Distribution Cross-Docking

Merchandise distribution cross-docking allows you to plan, control, and process the flow of goods from the vendor through a warehouse to the recipients, such as stores or customers. Merchandise distribution supports the push and pull method in SAP ERP, and enables cross-docking in the warehouse.

If you are working with goods that are already prepacked in handling units for individual final ship-to parties, and the data is saved in SAP ERP, SAP ERP can send the information to Extended Warehouse Management (EWM). At the same time, SAP ERP also sends the assignment between the handling unit and the final ship-to party to EWM. For more information, see Merchandise Distribution in the "Prerequisites" section.

The following figure shows you an example of a merchandise distribution cross-docking.

Example of a Merchandise Distribution Cross-Docking 1. SAP ERP triggers a push or pull. If SAP ERP generates collective orders due to stock transport orders or sales orders, it updates the merchandise distribution data (pull). If SAP ERP generates vendor orders and stock transport orders using an allocation table, it also updates the merchandise distribution data. (push). 2. SAP ERP then generates inbound and outbound delivery documents and sends these to EWM. EWM generates relevant inbound deliveries and outbound delivery orders. In contrast to transportation cross-docking, SAP ERP does not generate a fixed assigned delivery pair (inbound and outbound delivery document), instead it sends inbound and outbound delivery documents to EWM, which contain the process methods and the purchase order item as a reference. For an inbound delivery, EWM first considers all outbound deliveries that have the same reference number. In addition, EWM uses the merchandise distribution process to determine the warehouse process type, and to execute merchandise distribution cross-docking according to Customizing. The merchandise distribution process in EWM corresponds to the process method in SAP ERP. 3. In goods receipt, a difference is made between whether the vendor has sent packed or unpacked goods. 1. If you receive unpacked goods, you do not use handling units, meaning you cannot use process-oriented storage control. You have the following options: Goods Receipt with Unloading: You unload without using unloading warehouse tasks, post goods receipt, and generate the required pick warehouse tasks manually. SAP ERP and EWM update the inbound delivery. Goods Receipt Without Unloading: You post goods receipt without unloading, and generate the required pick warehouse tasks manually. SAP ERP updates the inbound delivery and posts goods receipt. 2. If you receive packed goods, you do use handling units, meaning you can use processoriented storage control. When EWM has received information about the end customer from SAP ERP, EWM checks whether the final ship-to party of the handling unit matches the ship-to party of the outbound delivery. When EWMfinds an outbound delivery, it generates unloading warehouse tasks according to Customizing for process-orientied storage control. You unload and generate relevant pick warehouse tasks. 4. You take the goods directly from goods receipt to goods issue, and post goods issue. 5. SAP ERP updates the outbound delivery and posts goods issue.