1

www.IDII.com

© 2007 Industrial Data & Information Inc.

W606 - Advanced Warehouse Management System for Normal

Warehousing OperationsPre-requisites: None

Warehousing is deceptively simple, yet quite complex at the same time. This "last mile" of the road is c-r-i-t-i-c-a-l to customer satisfaction as customers demand perfect shipments every time. Learn about advanced WMS functionality that can assist you in being very successful. Learn how many warehouses now offer value-added-services to their customers as a profit center. Insightful information on warehouse labor productivity and multi-tasking is also covered.

Wednesday, March 21, 2007, 3:45 p.m.Philip Obal, President of IDII

www.IDII.com

© 2007 Industrial Data & Information Inc.

Advanced WMS for Normal Warehousing Operations

Philip ObalPresident of IDII

www.IDII.com

(918) 292-8785

2

www.IDII.com

About the Speaker

Philip ObalPresident of IDII

(918) 292-8785PhilObal@IDII.COMwww.IDII.com

Tulsa - USA

www.IDII.com

About IDIIIndependent ResearchSoftware Selection & ImplementationWhite PapersTwo Free NewslettersPublications ….

3

www.IDII.com

The Perfect OrderWhat is the PERFECT ORDER?

Million Dollar Question

– What is More Important – Order Entry or Warehousing?

1. "A customer order that is delivered on time with the right items and quantities.” – Ken Ackerman

2. “The performance of the supply chain in delivering: the correct product, to the correct place, at the correct time, in the correct condition and packaging, in the correct quantity, with the correct documentation, to the correct customer.“ – Supply Chain Council

www.IDII.com

Deceptive Simplicity of Warehousing

Corporate Host ERP System

WMS

1. Outbound Order 3. Shipment Details

2. Pick – Pack - Ship SMSTMS

YMS

Client #100

4

www.IDII.com

Software that Connects to a WMS

1. Shipping Manifest System (SMS)2. Dock Scheduling3. Yard Management System (YMS)4. Labor Management System (LMS)5. Billing Module aka 3PL Billing6. Slotting Optimization 7. Load Optimization8. Route Optimization 9. Warehouse Simulation

www.IDII.com

Connectivity Diagram of WMS

5

www.IDII.com

Multi-Tasking = InterleavingMinimize Dead-Heading Leverage Task Queue & Increase Productivity

Interleaving of Tasks – Examples:– Putaway Person is trained to:

Putaway, Let-Down (Replenishment), Pick, Opportunity Count

– Picker is trained to:Move, Pick, Opportunity Count

www.IDII.com

Multi-Task – Location, EquipmentWMS knows the location (x,y,z) of each worker and what tasks worker is approved to perform. Optimal tasks are assigned to the worker.

Equipment is defined with limitation concepts and user authorization for this equipment. WMS directs the right equipment through the right aisles at the right levels.– E.G., Don’t send a lift truck to a mezzanine bin!

6

www.IDII.com

Dock Scheduling Software

www.IDII.com

Dock Scheduling SoftwareExpect:

– Manually enter the carrier, dock, date, and appointment time into the software product.

– Visual Calendar Scheduling Screen with ”Drag N Drop”– Non-Compliance Reporting: Carrier Late Arrival Report

Dynamic Scheduling = “I’ve Got The Power”

Dynamic: Eliminate manual assignment by considering freight attributes and current conditions at the warehouse to create a real-time dock schedule.

7

www.IDII.com

Voice

www.IDII.com

Voice TechnologyCommon Voice RF Usage– Piece Picking, Case Picking

Increased Productivity– Frees Hands & Eyes– Do Not Have To Shoot Barcodes– Can Increase Voice Speed (per user)– Confirm Bin Location by shorter Check Digits

8

www.IDII.com

Visualization of WarehouseGraphical tools for Warehouse Layout.Show detailed contents of selected bin(s).Show bins containing a selected item #.Show empty locations.

www.IDII.com

Yard Management System

9

www.IDII.com

Yard Management SoftwareVisibility of Inventory in the Yard = ability to expedite & use it.Track - Guard can record driver information, vehicle registration, trailer and container numbers.

Verify / Audit – Driver waiting time (detention) billing.Avoid - Container rental fees (demurrage).Possibly reduce the number of yard employees – evaluation needed first.

www.IDII.com

Graphical Yard View Screen from Softeon - - Used with Permission

10

www.IDII.com

Graphical Yard View Screen from Softeon - - Used with Permission

www.IDII.com

Labor Management System

11

www.IDII.com

Labor Management SoftwareAKA Engineered Labor Standards (ELS)Must define a “standard” task time. Calculate “Goal Times” for each upcoming task. Compare Actual versus Goal to determine performance.

Do you need Engineered Labor Standards?– Report writer can generate Labor Reporting based on

warehouse tasks from the WMS database. This is historical reporting of “what” happened (in the past).

www.IDII.com

LMS SavingsJust “Turn It On” = Employee “Awareness” of Task Tracking= 4 to 7% Labor Savings

Full Engagement of LMS= 18 to 25% Labor Savings – Full Commitment to LMS (Classes, Coaching)– Basis of Time Studies or Mixed RE/Time Studies

12

www.IDII.com

More Software with LMSTime and Attendance– Get the full picture of employee’s time.– Add this in coordination with the LMS.

Incentives and Rewards– Increase productivity with incentives.– Maintain task accuracy & increase productivity.– Incentives: Time off, Reward/Gift, Money.

www.IDII.com

© 2007 Industrial Data & Information Inc.

TMS Freight Software

13

www.IDII.com

TMS Freight SoftwareTMS Software Thoughts… – Need Domestic Freight, International Freight, or Both? –

Most TMS solutions are domestic or international.– List Modes (Truck, Rail, Air, Ship) Required– 3PL TMS Requirements are tougher than normal– Be real – Trucking Software (Fuel Tax, Driver

Settlement, etc) is infrequently available from the same software vendor providing freight rating & brokerage.

www.IDII.com

TMS Freight SoftwareBuild Module List – Freight Order Entry– Freight Tendering– Freight Rating– Freight Payment– Freight Audit– Carrier Qualifications (Insurance, Certifications)

– Freight Optimization $$$

14

www.IDII.com

Freight Optimization

Significant Freight Savings AchievedMust Have Time Period for Optimizing

– I.E., Outbound Orders Leaving in 12+ Hours

Reducing Freight Costs By: – Combining LTL Shipments to TL (Truck Load)– Combining LCL Shipments to CL (Container Load)– Zone Skipping– Multiple Carrier Consideration & Usage– Multimodal Consideration & Usage

Meet Customers Delivery Time Expectations

www.IDII.com

Document Imaging “Paper Clipping” – WMS to Manage Images:– Product Specification Sheets– Digital Photo of the Product– MSDS– CERTs– Engineering Diagrams

Key: Automatically Send Image to Customer

15

www.IDII.com

Provide Alerts to Trading PartnersSend Out AutomaticIntelligent Alerts (IA)

For Example -Shipment Confirmation MessageReceipt Underage MessageDamaged Item Message

2. Send OutShipment

ConfirmationMessages

3. HappyInformedCustomer

1. Shipment is Completed

www.IDII.com

Steps in Intelligent Alerts1. Subscribe to each alert by event and who should

receive the alert – a user, customer, vendor, or carrier. Specify format type (text, HTML, data,… ) and sending format (pager, fax, email…).

2. When ‘Alert Event’ occurs, automatically send out alert message to appropriate subscribers.

Expect a Labor Savings by using IA’s in repetitive activities, especially with clerical and CSR personnel.

16

www.IDII.com

Fast Review1. Task Interleaving2. Voice Picking3. Intelligent Alerts aka Supply Chain Event Management4. Shipping Manifest Software5. Dock Appointment Scheduling Software6. Yard Management System7. Engineered Labor System8. Rewards & Incentives Software9. Time & Attendance Software10. Billing Module alias 3PL Billing11. Slotting Optimization12. Load Optimization13. Route Optimization14. Warehouse Simulation15. TMS - Freight Brokering16. TMS - Freight Optimization17. Document Imaging

www.IDII.com

Quick RemindersSoftware is NOT created equally.Your mileage will vary – based on your vision, staff, and software utilized.Turn Over Every Stone! Be Thorough!

17

Questions

Thank You!

Eric Allais - PathGuide Techologies – WMS

Eric@pathguide.com - 425.438.2899

Phil Obal – IDII – Research / Consulting

PhilObal@IDII.com – 918.292-8785

www.IDII.com

Thank You for AttendingW606 - Advanced Warehouse Management System for Normal Warehousing OperationsPhilip Obal, President of IDIIPlease submit the Session Feedback Form– To receive NASBA credits, please be sure to

complete the Session Feedback Form and sign the class roster in the back of the room

Session Feedback Form Summit 2007 – Las Vegas, NV

Please take a moment to evaluate this session and offer feedback. Activant uses your input to understand your needs and to determine future Summit sessions.

Session Name: Session Number:

Presenter’s Name:

How important is this topic to your job/company? 1 2 3 4 5

Not Important Important

Please rate the educational value you received from this session. 1 2 3 4 5

Low Value High Value

1. What software are you currently using?

2. How long have you personally used this software?

3. Describe the effectiveness of your instructor.

4. What is your overall evaluation of this session?

5. What could have been done to improve this session?

6. What sessions would you like to see presented at future conferences?

7. What issues will be critical to your business in the next 12-24 months?

Check here if you would like CPE credits. To receive credits, be sure to sign your name at the bottom of this form and sign the roster in the session room.

Answering the following questions is OPTIONAL (but required for CPE Credits).

Yes No

Did this session meet your expectations, based on the description/objectives in the registration materials?

Were the pre-requisite requirements stated in the course description appropriate?

Did the session materials contribute to achieving the learning objectives?

Did the equipment (screen, microphone, projector, etc.) in the room enhance the instruction?

Was the time allotted for the session appropriate for the topic?

Name:__________________________________________________________________________________________________

Company:_____________________________________________________ E-mail:___________________________________