In a just-in-time (JIT) model (without stock), an e-commerce business must automate order management, production, and shipping while working with suppliers and third-party carriers for cross-docking. Cross-docking involves sending items produced by suppliers to a transit hub (the cross-docking center), where a third-party carrier ships them directly to the customer, bypassing a storage warehouse.

This article explores two approaches to managing this integration with SAP:

1. A solution without an iPaaS platform (like Boomi), using manual flow management.
2. A solution using Boomi to automate and centralize the integration process, including third-party carrier integration for cross-docking.

Context: The Just-in-Time Model with Cross-Docking

In a just-in-time model, the e-commerce company holds no stock. Each customer order is directly sent to suppliers for production. Instead of being stored in a warehouse, the items are sent to a cross-docking center (managed by a third-party carrier) and shipped directly to the customer. This process requires coordination between the e-commerce platform, SAP, the suppliers, and third-party carriers.

1. Solution Without Boomi: Manual Integration with Cross-Docking

In this approach, the e-commerce company sets up direct integrations between its e-commerce platform, SAP, suppliers, and third-party carriers without using an iPaaS platform. This requires more customization and manual management but can be a viable option for startups with limited budgets.

Steps of the Integration:

A. Order placed on the e-commerce platform:

1. Order captured on the e-commerce platform:
   When a customer places an order on the e-commerce platform (WooCommerce, Shopify, Magento, etc.), the order details (products, quantities, shipping address, etc.) are captured by the system.

B. Transfer of information to the e-commerce company’s SAP:

2. Manual or API transfer to SAP SD of the e-commerce company:
   A custom API (REST or SOAP) is used to send the order information to the e-commerce company’s SAP SD. SAP SD is used to record the customer order, enabling the e-commerce company to track the order, payments, invoicing, and traceability.

   • T-Code VA01: SAP SD processes the order as a customer order.

C. Sending the order to suppliers:

3. Sending to suppliers based on their system:

   • Suppliers using SAP:
     The order is sent as an IDoc ORDERS05 to the supplier’s SAP SD, where it is recorded as a purchase order.

   • Suppliers not using SAP:
     The order is sent via an API REST, a CSV/JSON file, or SFTP, depending on the supplier’s system.

D. Tracking production and shipping to the cross-docking center:

4. SAP suppliers:
   Once production is complete, the SAP supplier sends an IDoc SHPMNT06 to the e-commerce company to notify the shipping of the items to the cross-docking center.

5. Non-SAP suppliers:
   Non-SAP suppliers send an update via API, SFTP file, or automated email to notify SAP that production is complete and shipping is in progress to the cross-docking center.

E. Sending the information to the third-party carrier for cross-docking:

6. Sending details to the carrier for cross-docking:
   Once the items are en route to the cross-docking center, the e-commerce company sends the order information to the third-party carrier via API REST, a CSV file, or an email. This includes the order details and the customer’s final address.

F. Tracking cross-docking and updating the e-commerce platform:

7. The carrier manages final delivery to the customer:
   The third-party carrier, responsible for cross-docking, receives the items at the transit center and ships them to the final customer.

8. Updating the order status on the e-commerce platform:
   Once the carrier confirms shipping, the e-commerce company receives an update and sends a notification to the customer via the e-commerce platform.

Advantages of the Solution Without Boomi:

• Lower cost: No fees associated with an iPaaS platform like Boomi.
• Complete customization: The e-commerce company has full control over the integration, allowing for specific customization.

Disadvantages:

• High complexity: Managing multiple flows manually (e-commerce, suppliers, carriers) requires advanced technical skills.
• Lack of automation: Some steps require manual intervention, which can slow down the process and introduce errors.
• High maintenance: The e-commerce company must maintain the integrations manually and manage various systems (API, SFTP, etc.).

2. Solution with Boomi: Automating Integration with Cross-Docking

Using Boomi, the e-commerce company can centralize and automate integration between the e-commerce platform, SAP, suppliers, and third-party carriers for cross-docking. Boomi offers pre-built connectors for WooCommerce, Shopify, SAP, and carrier systems, making it easier to manage integration flows.

Steps of the Integration with Boomi:

A. Order placed on the e-commerce platform:

1. Boomi captures the order via an e-commerce connector:
   As soon as an order is placed on the e-commerce platform, Boomi automatically captures the information through a WooCommerce, Shopify, or other connector.

B. Automatic transfer to the e-commerce company’s SAP:

2. Boomi sends the order to the e-commerce company’s SAP SD:
   Boomi uses a SAP connector to send the order information to the e-commerce company’s SAP SD. Here, SAP SD is used to record the customer order, allowing the e-commerce company to manage and track the order.

C. Sending the order to suppliers via Boomi:

3. Boomi sends the order to suppliers:

   • SAP suppliers:
     Boomi sends an IDoc ORDERS05 to the supplier’s SAP SD.

   • Non-SAP suppliers:
     Boomi sends the orders via API REST, SFTP, or CSV/JSON file, depending on the supplier’s capabilities.

D. Tracking production and shipping to the cross-docking center via Boomi:

4. Boomi captures supplier updates:

   • SAP suppliers:
     The supplier sends an IDoc SHPMNT06 to the e-commerce company via Boomi to notify shipping to the cross-docking center.

   • Non-SAP suppliers:
     Boomi captures shipping updates sent via API or SFTP.

E. Coordinating with the third-party carrier for cross-docking via Boomi:

5. Boomi sends details to the carrier:
   Boomi sends the necessary information to the third-party carrier to manage cross-docking and the final delivery to the customer. The carrier receives the order details (products and final shipping address).

F. Tracking cross-docking and updating the e-commerce platform via Boomi:

6. The third-party carrier manages final delivery:
   The carrier receives the items at the cross-docking center and ships them to the customer.

7. Boomi updates the e-commerce platform:
   Once the carrier confirms shipping, Boomi automatically updates the order status in the e-commerce platform, and the customer is notified.

Advantages of the Solution with Boomi:

• Complete automation: Boomi manages all flows (suppliers, e-commerce, carriers) automatically.
• Centralization: All integration flows are centralized on one platform, reducing errors and delays.
• Ease of implementation: Pre-configured connectors for e-commerce systems, SAP, and carriers simplify the integration.

Disadvantages:

• Higher initial cost: Boomi’s subscription represents an additional cost for a startup.
• Dependence on a third-party platform: The company relies on Boomi to manage integration flows.