Sage MAS 500 Warehouse Automation

1. Sage MAS 500 Warehouse Automation Utilizing Warehouse Automation as a Selling Tool • Scott Pugmire • Sr. Vertical Industry Manager • Susan Frederick • Sr. Manager, Solution Consultants

2. Agenda • Terminology • RF-Barcode versus RFID • The Value Proposition of ADC • The Total Warehouse Automation Solution for Sage MAS 500

3. Let’s Define the Terms

4. Terminology & Definitions • ADC (Automated Data Collection) • An efficient and effective method of capturing data at the source • Includes transmission of data to required information processing system • Encompasses: • Data collection technology • Data gathering devices or input terminals • Data transmission for moving information in and out of the information processing system

5. Terminology & Definitions • RF (Radio Frequency) • An automated means of collecting encoded data encoded • Records events such as receiving, shipping, and picking • Requires human intervention and line-of-sight • Commonly used in wholesale distribution, manufacturing, and retail communities • RFID (Radio Frequency Identification) • Requires almost no human intervention • Line-of-sight not required due to technology design • Item, package, or pallet label contains an integrated chip

6. RF-Barcode vs. RFID Which is right for my customers?

7. RF - Barcode • Pros • Proven standard with no additional infrastructure costs • Barcode labels already available at an item level (RFID tags only plausible at case and pallet level) • Familiarity with RF – barcode technology • RFID will never completely replace RF – barcode technology • Solid investment • Cons • Human errors can rarely occur • Major players will eventually require suppliers to comply pushing RF – barcode technology towards maturity

8. RFID • Pros • Unsupervised identification (no human intervention) • No line of sight required • Unique identification • Associate static and lifecycle information to unique object • Location and environmental conditions • Cons • Tag reads are still a problem • Tag placement still affects readability • High cost of tags

9. RFID Reader (Fixed) RFID Reader (Handheld) Reader RFID Tag Chip RFID Label Printer Reader Antenna Antenna Smart Label RFID • Tags contain a unique identification number (or more information) that can be read via wireless reader • Tags are active, passive or semi-passive • Tags support various frequencies • Smart labels combine barcode and RFID label • Future tags will be environmental sensors

10. RFID Application Configurations Reader Locations Tag Placement Cases Items Dock Door Conveyor Pallets, Totes, etc. Yard Forklift

11. What is Auto-ID Center, EPCglobal? • Auto-ID Center • Founded in 1999 (6 universities and 87 companies) • Goal: a 5¢ tag • A unique product identity described by a 96-bit electronic product code (EPC) • Electronic Product Code (EPC), Object Naming Service (ONS), Physical Markup Language (PML) • EPCglobal • Certification organization developing standards to enable tags/readers to interoperate among RFID equipment manufacturers

12. RFID Network – High Level Architecture Business Application Sage MAS 500 • Apply business logic to real-time data • Make business decisions • Visibility and Analytics • Push down rules and alerts • RFID services and platform • Add context and turn raw events into business process relevant information • Interpret events at the edge through filters, rules & alerts • Discover, configure and manage devices • Hardware abstraction layer Distributed RFID site servers running RFID services & platform • Device Layer • RFID fixed and mobile readers • Barcode Scanners • PLCs, etc • Physical Layer • RFID tags, barcodes • Biometrics • Environmentalsensors, etc.

13. RFID Conclusions and Key Takeaways • It is still early days for RFID, but ... • RFID is a matter of when, not if ... • Mandates will hit sooner or later, but expect delays ... • Make good use of the remaining time by implementing Warehouse Automation now

14. The Value Proposition of ADC ADC will help you close more deals with technology that your customers can take advantage of today!

15. ROI in ADC Implementations • Increased inventory accuracy • Significantly reduce data entry errors • Increased ability to grow and expand operations • Gain new customers with greater demands such as serial or lot traceability • Increase warehouse workflow or add space while controlling growth • Virtually paper-free data collection process • Real-time data validation • Avoid performing steps out of sequence

16. ROI in ADC Implementations • Improved tracking of work in process (WIP) • Capture staff productivity using ADC equipment • Monitor processes such as receiving, returns, etc. • Deliver real-time warnings and messages to warehouse staff • Improved management visibility • Improve decision making • Respond to exceptions • Monitor new processes being implemented

17. Identify Customer Pain Points • High volume shipping and/or receiving • Inaccurate inventory counts • Lengthy physical count process • Missed sales opportunities • Increased customer satisfaction issues • Inefficient distance between receiving dock and computer workstations • Re-labeling of parts upon receipt

18. What to Look for in Receiving • Do you receive vendor shipments with items from multiple purchase orders? • Do you receive partial delivery of items? • Do you have receipts that require immediate shipment for customer backorders? • Do you need to organization items for optimal put away in a limited space? • Do you frequently have vendor mis-shipments and shortages?

19. What to Look for in Picking • How many steps are involved in the picking process? • How do you determine the optimal pick path? Could you improve the picking process by grouping like items from multiple orders into a single pick process? • How fast can orders be picked? How accurate are the orders? • How many hands actually touch a product as it goes through the pick process? • Are checks and balances efficient? • Can you accurately measure the effectiveness of your pickers? • Could you handle an increase in orders with your current staff? • How do you handle back stock?

20. What to Look for in Put-Away • How many items are inaccurately put away? • Do you know the optimal put away location for an item? • Do you need to track quantity by put away location?

21. What to Look for in Physical Inventory • How comfortable are you with your inventory accuracy? • How often do you think you have an item in stock only to find you’re out of stock at picking time? • How often must you perform a physical count? • Does the physical count process require that you shut down the entire distribution center? • Are you comfortable with the accuracy of inventory adjustments made after the physical count?

22. They have pain…Now what? • Ask more questions to find the right solution • Can the customer benefit from barcode capabilities in PO and IM? • Do they want to streamline the physical count process? • Do they need to barcode all warehouse operations or just the shipping process? • Is speed in picking critical? • Is there a budget for handheld devices?

23. The Total Warehouse Automation Solution for Sage MAS 500

24. Warehouse Automation Module Overview • Server Components • Listener for radio frequency communication • DLLs handle validation and execution of MAS 500 stored procedures • Launches barcode network printing of standard, pre-defined barcode labels (printing by unlimited users) • Setup programs for the handheld devices • Handheld Components • UI software written in VB.net • Any handheld hardware that runs Windows Mobile 2003, 2005 or CE.net

25. Receive Goods Warehouse Transfers Bin Transfers Cycle Counts Physical Counts Sales Returns Picking (Directed, Wave, Order) Packing Commit Shipments Manufacturing Material Issues & Production Entry (from Sage with 8.0 release) Manufacturing Completions (from Sage with 8.0 release) Tasks Performed Using Handheld

26. What the Competition Is Offering Microsoft Dynamics • Great Plains – No embedded warehouse management or ADC functionality. It’s all provided by third parties and offers less functionality than Sage MAS 500’s Warehouse Automation Solution. • Navision – Has embedded warehouse management and ADC functionality, but both are weaker than the Sage MAS 500’s Solution. • Sage MAS 500 WM module provides much more capability than Navision’s Warehouse management, particularly in the area of handling lot and serialized goods. It also has a much stronger User Interface and workflow than the Navision Warehouse Management solution. • Sage MAS 500 WA module provides many more processing capabilities than either the out-of-box solution or third party solution for Navision. The Navision ADCS solution offers only pick, put-away, cycle count, and bin movement. The third party ADC solution only adds in receiving and shipping plus a pick-pack-ship one step solution. • Axapta and Solomon do not have third-party solutions that are not as well established as Great Plains or Navision

27. What the Competition Is Offering SAP (Business One) • Their solution is simply a Radio Beacon interface Exact Software (Macola) • Strictly Third Party Niche Players • Typically will provide equal or deeper ADC fucntioanlity, but do not have the Business Intelligence or end-to-end solution that Sage MAS 500 has Activant (Prophet21) Infor (NxTrend)

28. Optional Plug-ins Available from Scanco • Available for MAS 500 Version 7.0 • Manufacturing Material Issues • Manufacturing Production Entry Paul F. Heim, Jr Scanco 877-722-6261 pheim@scanco.com http://www.scanco.com

29. Software Pricing • Warehouse Automation Module - $12,000 • Includes RF server software (Listener and Console), setup programs for handhelds, and unlimited printing of predefined barcode labels • Handheld License - $1,000 per handheld user • Bar-Code LabelXpert Designer - $3,000 • Allows single user to design custom labels • Can be purchased without WA or WM module • Ideal for printing compliance barcode labels

30. History of Handhelds • First there was Windows CE, then Pocket PC, then Pocket PC 2000 and now Windows Mobile 2003 and CE.net • Mobile 2003 - a “consumer” version that ships with Pocket Word, Excel, etc. • CE.net - a commercial version that only ships with the OS and some basic utilities (recommended) • Recommend rugged handhelds that can withstand multiple 5 foot drops to concrete • Units can support barcode and RFID scanners, integrated printers, WIFI LAN, Bluetooth, and WAN radios

31. Hardware and Services Pricing • Handheld Recommendations • Intermec CN2 - Small yet rugged and reliable mobile data collection terminal. SLP: $1,595 • Intermec 751 – Designed for harsh environments and can withstand multiple 5 feet drops to concrete. Sealed against rain and dust. SLP: $2,520 • Intermec CK61 – Designed for fast input and retrieval with a large easy-to-use keypad. SLP: $2,895

32. Hardware and Services Pricing • Access Point Recommendation • Cisco 1230 AG – Delivers high capacity, security, and enterprise-class features required in more challenging RF environments • Access point configuration determined by site survey • Begins at $899

33. Hardware and Services • Site Survey • Strongly recommended for warehouses greater than 30,000 square feet • Determines exact requirements for access points, antennas, cables, etc. • Delivers a list of all required components and exact placement of the access points and antennas in the warehouse  • Guarantees 100% coverage in the warehouse • Offered by Scanco   • Estimated cost: $1800

34. Hardware and Services • Installation • Ideally includes site survey, installation, configuration and post installation evaluation • Performed by certified Warehouse Automation (WA) Partners, Scanco or Sage MAS 500 Professional Services Group (PSG) • Scanco site survey required to guarantee 100 % coverage

35. Sales Workflow • Software • Contact your Regional Sales Manager to schedule a demonstration • WebEx demonstrations provided for qualified opportunities • Software purchased from Sage • Hardware • Recommended hardware purchased from Scanco or other vendor • Hardware installation performed by Certified WA Partner, Scanco or Sage MAS PSG • Engage Scanco to perform site survey to guarantee coverage

36. Partner Training Implementing and Supporting Sage MAS 500 Warehouse Automation – 2 days; $690 • Hands on course for planning, installing, and supporting MAS 500 Warehouse Automation • Planned delivery for first week in April • SIGN UP NOW!—Attendance limited • Partners in attendance can purchase a demo kit at a reduced price • Prerequisite: Working knowledge of Microsoft technology, security, server implementation, client/server technology, and MAS 500 distribution modules; SQL knowledge recommended but not required • Must pass assessment test for partner certification

37. Need More Information? • Warehouse Automation Pre-Release Guide currently being updated and reposted to the PFC • Hardware specification sheets and module brochure available soon • Webex recording and PowerPoint available on the PFC later next week • Warehouse Automation & BarCode LabelXpert Designer presentation also available on the PFC

38. Questions? Scott Pugmire Sr. Product Marketing Manager (800) 854-3415 x2206 Scott.Pugmire@sage.com http://www.sage.com Susan Frederick Sr. Manager, Solution Consultants (800) 854-3415 x3892 Susan.Frederick@sage.com http://www.sage.com