Your Warehouse, Your Most Valuable Distribution Asset

T E C S Y S I n c . | i n f o @ t e c s y s . c o m | w w w . t e c s y s . c o m

M a n a g e m e n tWarehouse

Table of Contents

T E C S Y S I n c . i n f o @ t e c s y s . c o m | w w w . t e c s y s . c o m

page 2 page 3

4Warehouse Management

Challenges

16Business Intelligence

5TECSYS Warehouse

Management Software

17TECSYS SMART

© 2011 TECSYS Inc. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

6Solutions Overview

18Expert Connections

8Advanced Warehouse

Management Functions

19Your Supply Chain Matters

12Key Advantages

20About TECSYS

Today’s warehouse operations are vital to deliver on the promises made to customers and achieve a high-level of customer satisfaction. Through the effective use of best practice processes and technology, today’s world-class warehouse operations are able to eliminate inefficiencies, improve order accuracy and inventory management, reduce operational costs and achieve a high-level of customer service. You may be dealing with the same challenges logistics management face every day, such as:

1. Increasing demands: constant changes in market conditions, increasing pressure by customers, radical demands. 2. Need to do a lot more with less: demand is high, inventory fluctuation, budget cuts, less staff. 3. Respond as an agile and flexible distribution organization: need to be able to respond quickly and effectively to

customer demands as well as constant changes in market conditions. 4. Move orders in and out of your warehouse with the highest efficiency and productivity: respond every day

quickly and efficiently to demands made by customers at the lowest possible operating cost. 5. Move away from unproductive technology and cumbersome processes: shed paper-based methodology, old and/

or inefficient processes and technology to facilitate best practice methodology and reach the highest KPI’s for your distribution centers.

Bottom line, you need to:

Significantly improve warehouse efficiency

Substantially reduce operational costs

Improve to the highest level service to your customers

With your warehouse representing your most valuable asset─financially and customer service-wise─it is undoubtedly one of the highest priorities in your supply chain to address with an objective to win in this highly competitive distribution world.

Turning your biggest asset into your most powerful competitive weapon

For over 15 years, TECSYS has been providing best practice warehouse management solutions to high-volume distribution customers across the globe. The Company’s WMS product has been recognized by a leading industry analysts firm as one of the top WMS and visionary products on the market. With its strong WMS product capabilities, domain expertise and market share in healthcare, the analysts firm has also recognized TECSYS as the dominant vendor in the Hospital Supply Network (IDN) market in one of its recent reports.

This strong position, backed by the deep expertise of TECSYS’ consultants and R&D staff, is the foundation of the Company’s solutions delivered to some of the world’s most renowned organizations such as Adidas, Canon, Cardinal Health, DB Schenker, Intermountain Healthcare, E1 Entertainment, McKesson, Milton CAT, Mitsubishi, Pool Corp and telent Limited, among many others who have turned their most valuable distribution asset─their warehouse─into their most powerful competitive weapon.

TECSYS’ WMS major capabilities include:

▪ Advanced WMS functions for receiving, putaway, inventory moves, picking, packing, replenishment, shipping, loading and cycle counting.

▪ System-directed RF task management and task interleaving.

▪ Multiple pick methods including wave, zone, batch, cluster and user-defined.

TECSYS Warehouse Management Software (WMS) ▪ Volumetrics and automatic shipping carton selection.

▪ Embedded advanced Transportation Management functionality including parcel carrier / LTL / FT management, rate shopping and freight auditing.

▪ Dock and cross-dock management.

▪ Value-added services enabling trading partner compliance on special production, kitting operations and custom labeling.

▪ Advanced inventory tracking: serial number, lot control and expiration date.

▪ Extended functionality for expanded supply chain execution: multi-warehouse, multi-regions, multi-language, multi-currency capabilities.

▪ Business intelligence including labor productivity, item velocity reporting and more.

▪ Seamless integration to several complementary applications and host systems.

“We looked at the top three enterprise suppliers and could not find a good enough WMS. The TECSYS system is

a proven product for healthcare. It is a very good fit for our needs and

works hand in-hand with our materials management and clinical systems. It is easy-to-use and it is helping us

maximize the efficiency and cost savings in delivering quality service for

patient care.”

Mike SwitzerVice President of Supply Chain

North Mississippi Health Services

“Without TECSYS’ WMS, we would have not been able to handle the load.

We would have had to add people. The idea is, with TECSYS’ WMS we do

more with less. At one point we had 47 people, today we are handling the

load with 28, even after increasing the number of products in our inventory by

almost 20%.”

Rick Hoose General Parts Manager

Cleveland Brothers


page 4

Warehouse Management ChallengesYour Warehouse, Your Most Valuable Distribution Asset

Receiving Quality Control Replenishment Picking Packing/Shipping/Labeling Transportation

Flawless High-Volume Order Fulfillment ▪ Process from one to thousands of line items per

order at the same time. ▪ Mix “each”, “inner”, “case”, and “pallet”

quantities on the same order. ▪ Process 100,000+ lines per week. ▪ Process 10,000+ orders per week. ▪ Ship using multiple carriers - with parcel, LTL,

full truck, and private fleet. ▪ Handle Big Box, Mom & Pop, and DC transfers.

Real-time Control of Complex DCs ▪ Control 100,000+ SKUs, plus non-stocks

and special orders. ▪ Support wide product variances:

weights, cubes, dimensions. ▪ Simultaneously process multiple units of

measure using graphical images: “each”, “pack”, “case”, “pallet”.

▪ Satisfy critical tracing/compliance requirements: FDA, lot/expiration, serial, recall, etc.

Accurate and Timely Receipts ▪ Process many parcel/LTL

deliveries/import containers. ▪ Handle a wide variety of receipts:

10 to 500 lines, “eaches” to “pallets”.

▪ Reduce availability for sale/picking from days to minutes.

▪ Simultaneously receive multiple small POs without presorting.

Global Internal and External Visibility ▪ Experience cross-application

information accessibility and sharing versus data integration.

▪ Enhance operations through the use of graphics/electronic documents.

▪ Collaborate with suppliers/customers via self-service Web access.

Scale with Business Growth ▪ Easily scale from two users to

200+ users, from 10,000 sq.ft. to 1,000,000 sq.ft., from 100 to 100,000+ SKUs.

▪ Benefit from easy-to-learn solutions for your warehouse and office staff.

▪ Partner with highly experienced distribution experts who will guide you today and tomorrow.

Reduced Order Turnaround Time ▪ Cut normal orders from 2-3 days to “in by

4:00, out same day”. ▪ Shorten rush orders from hours to minutes. ▪ Reduce cycle time for large orders using

coordinated team picking.

Reduced Labor and Steps for Picking/Shipping ▪ Automatically determine final container before

picking. ▪ Pick multiple orders simultaneously into final shipping

cartons. ▪ Eliminate packing/checking steps and their inherent

bottlenecks. ▪ Eliminate manual sorting/resorting of paper pick lists. ▪ Increase speed and accuracy through visual RF

instructions.

Inbound Delivery ManagementOutbound

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TECSYS WMS Overview

Advantages & Benefits

Putaway

O p e r a t i o n a l P l a n n i n g , P e r f o r m a n c e M a n a g e m e n t , T r a c e a b i l i t y , R e p o r t i n g , B u s i n e s s I n t e l l i g e n c e


TECSYS’ WMS is an industrial-strength, robust and feature-rich solution that includes all the capabilities typically found in other leading best-of-breed WMS applications, its key advantages are: Visual Logistics, Real Scalability, Accessibility from anywhere at any time and Extended Supply Chain Execution Capabilities beyond the warehouse.

Multiple Pick MethodsCreate your own ‘best practice’ to optimize

operations. Use the technology that fits – paper

picklists, label-directed, RF or voice. Select your

own preferred picking flavors – order, wave, zone,

cluster, batch or your own personal user-defined

method.

Volumetrics and ContainerizationMaximize storage space utilization and eliminate

repacking operations through advanced

volumetrics and pre-determination of the right

size and quantity of shipping containers.

TECSYS WMSAdvanced Warehouse Management Functions

Kitting / PostponementSatisfy changing customer demands with

kit-to-stock, kit-to-order or other complex

postponement strategies leveraging highly visual

instructions to ensure quality and accuracy.

QC / InspectionComply with internal, customer and regulatory

requirements through automatic quarantine and

inspections. Visually direct inspection processes

with high-quality graphics, text and instructional

videos.


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Slotting Reduce travel and cycle times with directed

slotting. Determine optimum product placement

and direct inventory movements based on pick

frequencies, volumes, facility layout and other

product characteristics.

Labor ManagementImprove operator performance through creation

of labor standards, pro-active management of

staff assignments based on real-time workloads,

and analyze actual versus standard results to

target areas for improvement.

Packing / Labeling / ShippingDeliver customer-specific labeling and packaging automatically as part of

normal packing and labeling steps. Eliminate the packing station completely

by moving the customer-specific and/or carrier-compliant labeling process in

line with order picking operations. Remove multiple parcel carrier workstations

with automated carrier selection based on rates, service levels and customer

routing guides without the need for manual intervention and multiple carrier

workstations.

Distributed Order ManagementStreamline the customer service experience – enter a single

customer order and automatically distribute order lines to the

shipping source. A single customer order may include shipments

from one or more internal DC’s, 3PL’s, drop shipments from

suppliers, special orders and even varying delivery dates and

methods.

Expiry Date,Lot Tracking,Serial Number TrackingSatisfy track-and-trace requirements of Lot ID’s and serial

numbers. Control stock rotation with sophisticated algorithms

that balance labor efficiency and storage space utilization with

date rotation requirements.

Advanced Inventory Tracking & VisibilityProvide real-time information to anyone in the supply chain –

anywhere, any time on any device. Automatically control

information access based on ‘need to know’ to ensure

confidential information remains confidential across the

supply chain. Allow collaboration and self-service across the

supply chain for status, tracking and tracing needs.


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TECSYS WMSAdvanced Warehouse Management Functions

TECSYS WMS – Key Advantages

Visual Logistics™Patent-Pending Breakthrough Technology for Optimum Warehouse Management

TECSYS’ Visual Logistics represents a paradigm shift in warehouse management, delivering visual cues and images to workers directly on their RF unit or handheld

computers; instantly communicating the exact activities they can perform in the optimum time, eliminating the wasteful and time-consuming process of reading

textual information, searching for product or pick slot. Visual Logistics enables customers to achieve significant increases in operational efficiency, unequivocal

accuracy in order processing and quality validation, and as a result be able to remove thousands of dollars in cost from their supply chain operations.

Visual Logistics is not just a new order picking technology; rather it is a solution that provides substantial benefits across all day-to-day warehouse operations from

receiving through to shipping.

A reduction of a few seconds per work transaction can translate into hundreds of thousands of dollars of labor efficiency savings for many distribution operations.

Real ScalabilityTECSYS’ WMS is flexible, adaptable and highly scalable to the size, need and

complexity of business. It allows distribution organizations to deploy the system

across a variety of operations─from paper-based to the most sophisticated

automated distribution operations with material handling equipment─while

meeting organization’s growing needs. Both large and small sites can be

economically implemented with the same application without a need to

implement multiple solutions. This results in a single standardized solution across

the organization while allowing individual sites to fine-tune their own processes

based on facility and business conditions.

Visual VoiceBy combining Visual Logistics™ with voice technology, operators become even more efficient than with just voice alone. This is an industry first technological

breakthrough that will revolutionize voice in the same way Visual Logistics is revolutionizing traditional RF operations in warehouses across the globe.

Graphical content provides operator aides for quick reference only or true multi-modal processes. The combination helps to eliminate common voice-only

challenges in situations such as confusing units of measure descriptors or cluster picking into a multi-tote cart.


page 12 page 13

VoiceAt TECSYS, we recognize that optimizing processes in the supply chain has many new variables. Better and faster processes

are now combined with different sizes and shapes of inventory items, requiring the flexibility of total hands-free for certain

distribution operations, as well a workforce for whom English may not be the primary spoken language. With TECSYS’

WMS, distribution operations have the voice choice to circumvent these challenges, and with the use of standard mobile

devices from different manufacturers with special speech recognition software, it makes voice and traditional RF operations

interchangeable on the same device.

500k+ ft2

Tier 3 WMS

Scale at the Speed of Business

Tier 2 WMS

Tier 1 WMS

Operational Complexity

Cost

/ Im

plem

enta

tion

Com

plex

ity

5k+ ft2

25k+ ft2

75k+ ft2

TECSYS’ WMS Scalability

Assumption Traditional Text-Based RFVisual Warehouse(5 Seconds/Line Savings)

Visual Warehouse(30 Seconds/Line Savings)

Elapsed time (seconds) to pick 1 order line 72 67 42

Split Case Pick Rate in shelving/flow rack zones in order lines/hour

50 54 86

Daily man-hours required to select 20,000 order lines

400 370 233

Annual labor cost for order picking if op-erators are paid $13.00/hour fully loaded

$1,352,000 $1,250,600 $787,500

Annual labor savings from Visual Logistics - $101,400 $564,500

Accessible anytime anywhereTECSYS WMS can be accessed from any browser-based device, from anywhere at any time. The system is intelligent, extensible and as easy to use as a browser. It is

adaptable to users’ environment, and is sensitive to each individual’s personal needs. As workers use the system more and more, its intelligent technology quickly

tailors itself to each individual preferences and way of working, and presents that information exactly how they like to see it.

TECSYS WMS TechnologyInternet-based with SOA architecture, TECSYS’ open system software applications can be deployed on premise, be hosted applications or be deployed as a SaaS

(Software-as-a-Service) model. TECSYS’ software can easily and securely be interfaced to other complementary software applications as well as materials handling

equipment.

With TECSYS:

▪ Executives are able to determine where the risks are and where the opportunities lie.

▪ Customers may be able to access views to track their own orders, as well as check on inventory levels and history.

▪ Vendors are able to see how their inventory is moving within the warehouse.

▪ Sales representatives are equipped with real-time information and always able to answer questions on product, stock and backorders.

▪ Customer service reps are able to deal with critical shipments, from tracking to status of orders.

TECSYS WMS – Key Advantages

Suppliers

Sales

Partners

Demand Planning

Customer ServiceCustomers

OfficeWarehouse Operations

Management

Distribution Center

page 14


End-To-End Solutions

Intelligent Visibility of Your Supply Chain

Fundamental to managing your distribution operation is the ability to have clear visibility across your

supply chain and to have access to actionable information in order to stay ahead of the competition.

On any given day, you are faced with tactical decisions, such as dealing with the level of certain

product inventory, ensuring that a major order is out of the door or handling certain inefficiencies in

the warehouse. On the other hand, you may be faced with strategic decisions such as dropping an

underperforming product line and/or refocusing capital resources into other areas of your business

where they can be more productive. These types of decisions require timely, accessible, and trustworthy

information to not only manage your business, but to drive your business forward.

TECSYS’ Business Intelligence (BI) solutions enable you to gain clear and immediate insight into your

organizational data assets in order to make informed decisions. Through TECSYS’ pre-packaged BI solutions

and services, you have the necessary tools and knowledge to manage your organizational performance.

TECSYS’ BI offers a suite of intuitive tools that are easy to implement, use and manage, as well as pre-built

models and content such as reports, analyses, dashboards, multi-dimensional data-marts and metadata

models to allow your end users to immediately realize your objectives.

Managing information, making it accessible, and empowering your user community with easy-to-use tools

is essential to unlocking the value of your data assets and, in turn, improving your workforce’s productivity

and efficiency through better and faster decisions.

TECSYS has built its business through a single-minded focus on

warehousing and distribution operations and by developing robust

products and leading expertise over more than two decades. The

Company employs a seasoned team of experts who have extensive

experience in supply chain management and in deploying TECSYS’

technology in high-volume distribution environments, enabling

customers to significantly streamline logistics operations, reduce

cost and improve customer satisfaction.

TECSYS’ professionals have been designing and deploying supply

chain execution solutions for more than twenty-five years in the

healthcare, high-volume distribution and third-party logistics

industries. As a result of our deep experience and best practice

know-how in the vertical markets we serve, we have packaged

a comprehensive set of pre-engineered business processes

and supply chain management tools to enable your business to

follow proven blue prints to achieve best-in-class supply chain

performance.

Leveraging Expert Know-How for Best-in-Class Supply Chain Performance

These blue prints are a set of Supply Chain Modeling And

Reference Tools built over more than two decades of designing

and deploying solutions for world-class organization’s supply

chains we call SMART™.

TECSYS SMART is a suite of best practice supply chain “roadmaps”

encompassing all the processes that are used in each market we

serve: healthcare, high-volume distribution for automotive spare

parts, heavy equipment dealers, industrial distributors, import-to-

retail distributors, general high-volume distributors and third-party

logistics providers. TECSYS SMART enables decision makers to reap

the benefits brought about by TECSYS’ experienced professionals

by applying the blue prints of expert know-how in their particular

industry.

With TECSYS SMART you are confident of the best-practice

roadmaps that enable you to reach best-in-class performance and

out-execute your competition.

TECSYS WMS – Business Intelligence TECSYS Supply Chain Modeling And Reference Tools – SMART ™


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Expert Connections

TECSYS’ support professionals are the front line of TECSYS’ expertise to support you in meeting your operational needs.

Our team is well-versed in the details of TECSYS’ solution, ready to assist you with any questions and, when needed, to troubleshoot any issues that may arise. This team of full-time technical and application specialists is expert in TECSYS’ software, well educated in your specific industry and combines that knowledge with the specifics intricacies of your application.

TECSYS offers a wide range of support programs and delivers industry-leading support, technical expertise, and innovative self-service tools, 24 hours a day, seven days a week. Whether you are going live on an application, upgrading your TECSYS software, or experiencing a technical issue, our application specialists are on call to ensure that we provide you with that unrivaled support to meet your specific support needs.

With TECSYS, Your Supply Chain Matters!


page 18

Professional Experts, People-Oriented ▪ More than 75% of TECSYS’ staff has 10–25 years experience in supply chain management;

warehouse, distribution & transportation management, best-in-class business processes and technology.

▪ Deep and unique expertise in each vertical market; healthcare, high-volume distribution and third-party logistics.

Robust & Flexible - Applications & Technology ▪ TECSYS’ technology is robust, powered by state-of-the-art Java® technology and TECSYS’

proprietary iTopia® framework.

▪ Flexible, integrated and intuitive technology, easier to use and deploy – provides strong competitive advantage and high ROI to customers.

▪ TECSYS supply chain applications respond effectively to customers’ business needs – moving goods efficiently, reducing logistics costs, improving fill rate, tracking products and orders, and providing unprecedented visibility into customers’ supply chains.

Focus on Supply Chain Execution ▪ TECSYS is focused on supply chain execution with its people, solutions and technology – specific

solutions to specific clients’ needs in each vertical segment we serve.

Agility & Responsiveness to CustomersTECSYS’ infrastructure is nimble and flexible, enabling the Company to:

▪ Move quickly and efficiently.

▪ Respond quickly to its customers’ needs.

Why Customers Choose TECSYS: TECSYS - Providing Customers with Advantages that MatterTECSYS’ technology is an enabling platform for solving its customers’ warehousing and distribution challenges. Its rich expertise and distribution management capabilities for vertical markets provide key advantages to its customers such as:

▪ Improved fill rate up to 99.98%

▪ Reduced operational costs

▪ Increased order accuracy to over 99%

▪ Improved labor productivity; handle more with less

▪ Improved responsiveness to customers

▪ Increased customer satisfaction

page 19

TECSYS’ wide range of support services include:

▪ Telephone & email support

▪ Web: knowledge-base, support status

▪ Remote diagnostics and remedies

▪ Onsite support when needed

▪ Maintenance releases

▪ System administration training

▪ DBA services

We provide you with the knowledge and assistance you need, at all times, to make sure your TECSYS solutions deliver on its exceptional promise to enable best-in-class performance of your supply chain.

About TECSYS

TECSYS is a market-leading provider of warehouse management, transportation management and

distribution management software and industry-expert services to mid-size and Fortune 1000

corporations in healthcare, third-party logistics and general high-volume distribution industries.

The Company employs a seasoned team of experts who have extensive experience in supply chain

management and in deploying TECSYS’ technology in high-volume distribution environments,

enabling customers to significantly streamline logistics operations, reduce cost and improve

customer satisfaction.

1 Place Alexis Nihon

Suite 800

Montreal, Quebec

Canada H3Z 3B8

Toll free: (800) 922-8649

Tel.: (514) 866-0001

Fax: (514) 866-1805

TECSYS improves customers’ supply chains

with unparalleled industry solutions based

on its advanced, proven technologies and

feature-rich suites of enterprise supply chain

management applications. By leveraging

the full power of its solutions to improve the

efficiency and profitability of their businesses,

TECSYS’ clients continue to soar as leaders in

their respective fields.

Your Warehouse, Your Most Valuable Distribution Asset

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