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HUES Enterprise Consultants

GLOCO Warehouse Integration Proposal. Presented by: Stephen Martino Ella Buitrago Alex Yermilov Bryan Kilpatrick. HUES Enterprise Consultants. Agenda. GLOCO Warehouse Integration Proposal Business Case and Proposed Solution – Steve

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HUES Enterprise Consultants

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  1. GLOCO Warehouse Integration Proposal Presented by: Stephen Martino Ella Buitrago Alex Yermilov Bryan Kilpatrick HUES Enterprise Consultants

  2. Agenda • GLOCO Warehouse Integration Proposal • Business Case and Proposed Solution – Steve • Order Fulfillment Inefficiencies As-is & Resolution To-be – Ella • Inventory Replenishment Inefficiencies As-is & Resolution To-be – Ella • Business Benefit Justification – Bryan • Financial & Success Metrics – Bryan • Short Video • Technical Specification and Prototype • Automated Material Handling Decision – Steve • Order Fulfillment Data Flow – Steve • GLOCO WMS-MHS Solution Demonstration – Alexey • Implementation Plan • Project Timeline and Governance - Bryan • Business Process Redesign - Steve • Hardware & Software Design – Steve/Alexey • Non-Functional Components - Alexey • User Enablement and Training - Ella • Risk Management - Ella • Success Metrics - Bryan • Questions HUES Enterprise Consultants

  3. HUES Proposed Solution HUES Enterprise Consultants

  4. GLOCO Warehouse Integration Proposal Business Case • Business Problem: • Inefficient Use of Employee Labor (70% Warehouse Walking) • Order Fulfillment Inefficiency (Single Order Picking) • Inaccurate Order Fulfillment (95% Order Fulfillment Accuracy) • Sub-Standard Inventory Control (Customer Dissatisfaction/lost sales) • Team ONE is recommending an Automated Material Handling System that solves GLOCO’s inefficient order fulfillment and inventory replenishment processes, resulting in reduced operating and capital expenses and will realize $12.3 million dollars of additional revenue for GLOCO. HUES Enterprise Consultants

  5. GLOCO’s Inefficient Order Fulfillment Process Person To Goods – As-Is 55 Minutes Total HUES Enterprise Consultants

  6. GLOCO’s Automated Order Fulfillment System – Goods To Person – To-Be 22 Minutes Total HUES Enterprise Consultants

  7. GLOCO’s Inefficient Inventory Replenishment System - As-is 130 Minutes Total HUES Enterprise Consultants

  8. GLOCO’s Automated Inventory Replenishment System – To-be 25 Minutes Total HUES Enterprise Consultants

  9. Business Benefit Justification • Customer Order Fulfillment - Automation Business Benefits: • Customer order processing will increase by 4x. • Decrease average order-to-ship time by 1 day. • Customer satisfaction will improve with GLOCO’s fast order-to-ship times. • The profit margin per customer order will increase by 2% as a result of a higher fulfillment rate. • The Material Handling System will cut the order fulfillment time by 5 minutes per order. • New automation will reduce employee payroll by 60%. • New efficiencies with the automated fulfillment system will eliminate capital designated for new warehouse construction. HUES Enterprise Consultants

  10. Business Benefit Justification • Inventory Replenishment - Automation Business Benefits for GLOCO: • Customer Sales revenue will increase though improved In-Stock Inventory accuracy. • A 5.4% increase in cash flow will be realized as a result of improving inventory management. • Inventory will be replenished faster resulting in reduced out-of-stock items by 5%. HUES Enterprise Consultants

  11. Financial Metrics Warehouse Capital and Operating Summary HUES Enterprise Consultants

  12. Financial Metrics FINAL Capital, Operating and Revenue Benefits HUES Enterprise Consultants

  13. Success Metrics HUES Enterprise Consultants

  14. Video if time permits: Kiva Systems HUES Enterprise Consultants

  15. Technical Specification and Prototype HUES Enterprise Consultants

  16. Agenda • Automated Material Handling Decision – Steve • Order Fulfillment Data Flow - Steve • GLOCO WMS-MHS Solution Demonstration – Alexey HUES Enterprise Consultants

  17. GLOCO’s Automated Material Handling System Decision After an extensive RFP process of Automated Material Handling Systems (MHS) and in-depth analysis of GLOCO’s order fulfillment and inventory replenishment business requirements, GLOCO and HUES Enterprise Consultants have chosen Kiva Systems as its Automated MHS. HUES Enterprise Consultants

  18. GLOCO Order Fulfillment Technology & Data Flow Required Functionality • MHS must notify WMS/ERP about order completion/inventory/shipping changes/events • MHS must be able to import and periodically update by request from ERP/WMS core data • GLOCO ERP modules must support the import of XML documents by request. • MHS should start to process new orders less than 30 sec after notification.  • GLOCO ERP must be able to save the Customer’s order form (Web interface and API). Amazon Messaging Service Alerts GLOCO ERP Of New Customer Order Customer Order Event Message Sent To Amazon Messaging Service GLOCO ERP Software Updates WMS Module Databases GLOCO WMS Module Software Updates Kiva MHS Databases GLOCO ERP Software Updates ERP Databases GLOCO ERP REST Script Retrieves GLOCO XML Order Customer Order Stored on Amazon Simple Storage Service Customer Places Order on GLOCO Order Fulfillment Web Portal Kiva MHS Updates GLOCO WMS Module & ERP Databases Robots begin the picking process. 1 0

  19. GLOCO WMS-MHS Solution Demonstration http://hues.gloco.ermilov.com HUES Enterprise Consultants

  20. Implementation Plan HUES Enterprise Consultants

  21. Complete Project Timeline GO LIVE! 10/4/2013 20 Weeks

  22. Project Governance: Communications Dashboard 22 HUES Enterprise Consultants

  23. Project Team HUES Enterprise Consultants

  24. Stakeholders 24 HUES Enterprise Consultants

  25. Business Process Redesign Responsible: HUES Business Analyst HUES Enterprise Consultants

  26. Hardware Design • Hardware Design • Design Kiva Pod Layout • Robot Pathways • 2D Bar Code Sticker Layout • Wireless Access Layout Responsible: Hardware Architect HUES Enterprise Consultants

  27. Software Design Involves designing an XML formatted “Customer Order Fulfillment Document” and an “Inventory Replenishment Purchase Order Document” that map to GLOCO’s ERP Database fields Responsible: Data and Software Architect HUES Enterprise Consultants

  28. Hardware and Software Installation • Hardware • Installation of 2D Bar Code Sticker Grid • Kiva Pods • Picking and Replenishment Stations • Wireless Infrastructure • Move Inventory to Kiva Pods • Software • Install Kiva Material Handling Software (MHS) • Import Inventory Data to MHS from ERP/WMS • Install and Test MHS <-> ERP/WMS Integration Scripts Responsible: Software Architect & Engineer Responsible: Kiva Engineer HUES Enterprise Consultants

  29. User Enablement and Training • As part of the professional services engagement HUES –KIVA will be responsible for: • Standard Operating Procedure Training • Virtual Test System Training • Software and Hardware Initial Training • Consultative services after client “Go Live” events to validate the training effectiveness Responsible: HUES & Kiva Trainers 29 29 29 29 29 HUES Enterprise Consultants

  30. / User Enablement and Training • The training methods included in the plan are: • Individual hands-on instructor training • Hands-On in classroom trainingWeb Seminar • Computer Based training • Book Based Responsible: HUES Business Analyst & Project Manager 30 30 30 30 30 30 HUES Enterprise Consultants

  31. Supporting Non Functional Components Background Processes Health Monitoring Scripts have been implemented to synchronize XML data between ERP and Amazon S3. Amazon’s Simple Queue Service (SQS) will provide the functionality to connect Amazon services to GLOCO’s IBM Tivoli Live Monitoring Service. Responsible: All Roles On-Call 31 31 31 HUES Enterprise Consultants

  32. Project Governance: Risk Management 32 32 HUES Enterprise Consultants

  33. / Success Metrics 33 33 33 33 33 33 33 33 HUES Enterprise Consultants

  34. / Thank you Very Much! Questions??? 34 34 34 34 34 34 34 34 34 HUES Enterprise Consultants

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