Supply Chain Management:

Technology

Heinrich Kaniude

Contents Overview Warehouse Management System Voice-directed Warehousing E-commerce Recommendation Q/A

Established in 19731

Multi-Channel Retailer of household goods2

2/3 of population has an Argos catalogue2

130 million customers a year2

£4.3 billion revenue in 20112

33,000 employees2

Overview

Supply Chain Excellence Award

Has been awarded the BT Retail Assist Supply Chain Excellence Award in 2010 for their Voice-directed Put-Away system3

Warehouse Management System

(WMS) Storage Related Activities

Put AwayGoods ReceptionStock Management Order Reception & Picking Dispatch Material management

Voice-directed Warehousing

Uses speech recognition and speech synthesis to allow workers to communicate with WMS

Computer :

Go to building one

Operator : Ready

Computer: Aisle five

Operator : Ready

Computer: Bay twenty-seven

Operator : Ready

Computer :

Pick four boxes of Justin Bieber Albums

Comparison between RF and Voice

Arrive at bin

Scan locatio

n barcode load next

screen

Scan product barcode load next

screen

Read pick

quantity

Put terminal down

Material handling- picking

Pickup

terminal

Confirm qty

on termin

al, load next

screen

Read next

picking locatio

n

Leave

bin

Total 26-46s

per locatio

n

(3s) (5s) (2s) (1s) (10 – 30s) (1s) (2s) (2s)

Arrive at bin

Say visual check digits as you arrive

Read check digits,

told qty

Told pick qty promptly after check digit read

Terminal worn, no need to

put down

Material handling- picking

Terminal

worn, no

need to

pick up

again

Qty auto-con-

firmed by

voice as

picked

Next locatio

n given alread

y

Leave bin

Total 15-35s

per locatio

n

(2s) (10 – 30s)

RF Scanning

Voice

Benefits to Argos Improved Argos’ put-away process

efficiency by up to 24%4

Warehouse layout flexibility

Ability to stock greater variety of products

E-business at Argos

Manufacturer Consumer

E-SCM (B2B)

E-Commerce (B2C)

Argos works with Transalis to maximise their European supply chain efficiency, to manage their B2B electronic enablement for up to 650 suppliers.

- In 2011 - 32 % of total sales are through the Internet

- 2nd largest internet retailer in the UK5

Questions?

References [1] http://en.wikipedia.org/wiki/Argos_(retailer) [2] http://www.homeretailgroup.com/about-us/our-awards/ [3] http://www.homeretailgroup.com/about-us/our-awards/ [4] http://www.zetes.co.uk/en/references/retail/argos-voice [5] http://www.homeretailgroup.com/ar/2010/review/argos/