Implementing WMS

Lessons Learned

Ronald Beer - Managing Consultant TopConsultrbeer@topconsult.nl

+31 (0) 6 53 11 74 12

Agenda

� Introduction TopConsult

� Oracle WMS

� Implementation Case

� Lessons Learned

� Questions and Answers

Mission Statement

Being the best solution provider

for Oracle Applications

Key Facts

� Founded in 1998: Experience in implementation of Financials, Projects, Supply Chain Management Solutions, CRM and HRM. Now a team of over 20 very experienced Consultants with at least 3 years of Oracle Applications knowledge.

� Full service partner; One Stop Shop for implementations of Oracle Applications: installation, functional implementation, technical assistance interfaces, conversion, custom solutions, DBA, after-care and training.

� Packaged Services.

� Product Development / Standard Solutions

� Process Oriented Education.

� Conversion / Interfacing and Customisation services.

Oracle Supply Chain Solutions Before WMS

Administrative WMS functionality

� The standard Logistic Modules enable registration of inventory transactions: you can perfectly tell the system where the goods are stored.

� No Put Away logic at receiving.� Relatively poor picking logic. The system tells you where to pick the goods

based on simple standard rules.� Mainly focused on registration of transactions.

==> In many cases the WMS solution was a third party solution which needed interfacing to and from.Oracle WMS fills a gap existing for years.

Oracle WMS functionalities

� Fully Integrated with Oracle Logistics (Oracle SCM)� Receiving including Smart Put Away� Intelligent Replenishment� Smart Picking: using FIFO, using extra criteria which can be stored in

DFF�s.

� Very powerful Rules Engine to define put away and picking rules.

� Warehouse Management including task dispatching over operators and material.

� Designed for use of mobile handheld (RF) devices: easy, simple screens (�character based�) that can be used via a telnet client (MSCA). Runs on the �mobile server�, not on the device.

� Event based document printing using XML messages (assign labels to business processes).

Oracle WMS in relation to other modules

Purchasing Order Management

Inventory

MSCA

WIP/BOM

WMS

Implementation Case

� Integration of the 2 existing logistic operations of a Dutch TELCO:

� One in an outsourced warehouse running on Oracle already, using interfaces to external WMS of outsourced warehouse,

� One running a legacy system that needed replacement.

==> Physical and systems integration

� Full Stock Visibility including the stock of the own shops.

� Better and more complete Management Information.

� Foundation for future business improvement in other areas.

� Integration with existing systems (billing, SIM activation)

ORDER ENTRYand

PURCHASING

MAKE DEL INVOICE SHOP

OrderEntry

Interfaces

PurchasingPOS

WMS

Oracle

Oracle

Oracle

Billing

A/R

STOCK

Finance

Points of interest

� Stock Visibility demanding interfaces with Point of Sales system in shops.� Clearly identify quarantine stock and in-transit stock.� Reduced Cost of Ownership.� Upgrade proof.� Efficiency gains in warehouse.� FIFO Picking / Selection of correct Firmware.� Reduced shipping errors.� Reduced Obsolescence.� Improved Customer service.� Documents (Labels, Pack Slip, Barcodes).� Communication with forwarders.� Vendor Rating.

Choice for Oracle WMS?

Oracle already present for Financials, Purchasing and Order intake. For the new WMS the decision was between :

Best-of-breed including interfaces with Oracle

versus

The integrated Oracle Solution

Oracle WMS was chosen to avoid both double stock keeping and complex interfacing. Future maintainance cost of the system in the future are expected to be lower then in a best-of-breed solution. Oracle was highly committed in the project to overcome the identified risk regarding the expected immaturity of the product at that time (July 2002).

Elements of the Solution

� Redesigned set-up of Inventory and Order Management.

� Set up of WMS Rules Engine for put-away and picking.

� RF enabled but not implemented in phase 1.

� Printing of labels and documents using StreamServe and TopConsult Export Scripts.

� Interfaces with the POS system.

� Interfaces with SIM activation system and Billing application.

� Interfaces with forwarders.

� Customisations to handle serial numbering in an efficient way for a mobile TELCO.

� Optimised Oracle Forms using the TopConsult Security PlugIN.

Serial and Lot Control

� Serial control is essential for handsets, SIM�s and Top Up Cards. For various reasons in Oracle the Serial Numbers are only assigned at Sales Order Issue. At receiving the serial numbers are scanned into a custom table using a custom screen.

� At Shipping a Custom Trigger checks whether the Serial Number that is scanned is a valid one preventing wrong shipping.

� Every LPN is one Lot. The Lot contains 2 Descriptive Flexfields : Warranty Date and Firmware Version.

� These 2 fields are essential in Smart Picking.

WMS functionality at receiving

� WMS Receiving will take into account whether an item requires inspection or not. If inspection is not required a Put Away instruction is directly generated from the rules engine. In this case the location is determined depending on volume (pallets always go to Bulk) and article number.

� When goods to be inspected pass inspection the Rules Engine determines the location again depending on volume and article number. If the goods are not OK these are located in the quarantine area.

� The system generates the XML messages for the assigned labels which can be printed directly (no concurrent program!).

WMS Screens

Put Away Labels

Pallet LabelPut Away Instruction

Barcode label for products

Picking and Shipping

� Min-Max replenishment can be directed to replenish your Pick Area from your Bulk area. The rules engine is set up to prevent LPN�s from being split. The LPN to be used is chosen by selecting the oldest warranty date (= flexfield on the Lot).

� Move orders for kitting are also created using the warranty date. Finished Goods are stored in a separate area.

� At Picking the rules engine will pick from the Pick Area unless a complete pallet is ordered. The location that is chosen is taking into account warranty date and firmware version (if applicable).

� At shipping the forwarder can be overwritten if needed. Both the Pack Slip and Shipping Labels are printed.

Current Weak Spots

� No EAN scanning, No Vendor Product Number translation. The scanned article number must be your article number.

� The LPN is king. You can not set up the system to force scanning of every individual item (for error check) unless you use full serial control for all items.

� Correction of human errors is very complex and clearly needs improvement.

� No logic possible when generating a range of serial numbers: SIM�s are shipped in large ranges but the last digit of the SIMCARD is a control digit!

Lessons Learned

WMS is seriously effecting all modules it is interacting with: more than we anticipated

on. Every change requires extensive testing. Profiles and transaction manager settings

are very important.

Lessons Learned

�Just putting it in an existing Oracle SC instance� is impossible: it is a complete new implementation. Actually changing your non-WMS operation into a WMS enabled operation requires a complex stock transfer that does not differ to much from a transition from a legacy system.

Lessons Learned

If you plan to use WMS start using LPN identifiers a.s.a.p.

At Go-Live you MUST do a stock count.

Get aligned with your forwarders in time.

Lessons Learned

You always are on the wrong release or patch-level.

Start with RF from the beginning.

Conclusion

Oracle has closed the gap in WMS functionality and it is improving the product rapidly. WMS seems a promising addition

to the eBusiness Suite.

Questions ?