Supply Chain Execution: WMS TMS

1. Supply Chain Execution:WMSTMS Brian Graystone, MBA www.aflux.com.cn

2. SC Software • Visibility • Optimization • Execution • Convergence

3. Warehouse Management System(WMS) • Management system to assist in running the warehouse • WMS success is normally driven by proper design, functionality, vendor selection and implementation

4. WMS • Use a structured approach to selection: • Economic justification • What problems do you want the WMS to solve? • Optimize current processes • Detailed bid specification • Vendor selection • Implementation

5. WMS Benefits • Real-time information with RF and bar coding • Location management • Cycle counting • Labour and equipment assignments • Pre-receiving (ASN, inbound logistics) • Task interleaving • Quality initiatives

6. WMS benefits • Error reduction • Inventory accuracy • Cube utilization - random storage, directed putaway • Virtual locator system • Routing of MHE for putaway and picking • Lot functionality • FIFO support

7. WMS benefits • Security • Picking methodologies: • single order • wave • batch • Historic log of all transactions • Documentation • Management and performance reporting

8. WMS benefits • Value-added activities • stripping • tagging • folding/hanging • packaging • labeling • Returns & recalls

9. WMS benefits • Rewarehousing • directed by velocity/storage methodology • seasonality • Numbers: • inventory accuracy - 99%+ • labour productivity - up to 40% • space utilization - up to 90%+ • customer service - priceless

10. Transportation Management System (TMS) • Many systems exist to optimize the mode and usage of transportation • Focus: • Routing • Minimizing cost • Minimize number of vehicles • Maximize consolidation • May be used for ground, multi-modal or even ocean transportation • Ratings engine for selection of best carrier based on urgency and cost

11. TMS • TMS often uses an optimization algorithm to achieve the desired goals • Traveling Salesman problem • Tabu search • May achieve a sub-optimized solution that can be used • Due to the time taken to achieve an optimized solution • Recalculations as data changes

12. TMS • Accommodate restraints: • delivery time windows • work rules • redispatch • vehicle capacity • different origin & destination • barriers (bridges, ferries, construction, etc.) • speeds - city, urban streets, long-haul • special handling - tailgate, MHE

13. TMS • Work as “crow-fly” distances with scaling, or • GIS “street-level” • Savings can range from 10% to 25% of transportation costs

14. Integration of two systems • Each system works to execute within its own sphere • Constant changes in orders, quantities, destinations require real time exchange of information and recalculations • Ideally, WMS & TMS work together to plan and execute the picking and load plan, mode of transportation and routing

15. Integration of two systems • Requirements • execution of transportation plan to the WMS • real-time data of order(s) status to the TMS to update planning • integrated database and master file structure • compatibility of system architecture • ability to easily change the table-driven functions such as adding carousels or algorithm parameters

16. Further... • WMS - Mike Gibson from iLink • TMS - Lisa Blewett from ESRI

17. i-Link Solutions Your Link to: Inventory Information Innovation

18. MWM Functions Counting Picking Consolidation Bulk Shipping Incoming Inspection / Putaway Receiving Crossdock

19. Receiving

20. Receiving Benefits • Paperless • Goods handled once when received • Eliminate clerical effort • Eliminate cost of receiving wrong product • Goods immediately available to inventory / order entry system

21. Special Receiving Capabilities Generation of Barcode Labels Unexpected Receipt Handling FIFO & Lot Control Serial Number capture U.O.M. Conversion Single step Receive / Putaway

22. Quality Control • WM provides QC Hold, Inspect and Release Functions right from the Handheld • Can be integrated into receiving

23. Putaway

24. Putaway Benefits • Directed Activity • Multiple Putaway methods • No searching for empty locations • No more move tags • Putaway to the “right” location dynamically • Fill outstanding requests first • Paperless - eliminate clerical / data entry effort and errors • More moves per hour • Product immediately available to pickers

25. Letdown / Replenishment

26. MWM LetDown • Directed Activity • Paperless • Eliminate clerical / data entry effort and errors • Proactively supply material to pick areas. • Supply vs Demand

27. Moves

28. MWM Move Benefits • Moves are tracked without paper • Real time capture and update prevents negative impacts on picking or locating product • No more “lost on cart” situations.

29. Picking Lot Control FIFO Wave, Zone, Label

30. MWM Picking Benefits Empower warehouse staff • Increase job satisfaction • Develop standards and monitor productivity • Decrease training time for new employees or temps • Increase Labour Capacity - decreasing need for temps or overtime

31. MWM Picking Benefits • Dramatically reduce picking errors: • Validate during pick process • Eliminate short and over picks • Eliminate the need for checkers • Real time, automatic update to the host for inventory status and customer inquiry • Eliminate the paper • Eliminate clerical / data entry effort and errors • Produce pack slips and/or labels

32. MWM Picking Benefits • Maximize pick efficiency: • Directed pick path using “best pick” locations • Wave and split picking • No searching for product • Ensure FIFO, FEFO and / or Lot Control • Manage Order Priority • Automatic allocation of orders

33. Consolidation

34. Shipping

35. Shipping

36. Shipping Benefits • Automatic production of shipping documents including labels, waybills, manifests and bills of lading • Automatic Freight Rating • Automatic Update to Host • Improve freight management with shipping reports

37. Counting

38. Counting Benefits • Increased Inventory Accuracy and Availability • Reduced Counting Labour • Eliminate Physical Count • Execute Cycle Counting without freezing or interrupting warehouse operations • Directed Activity • Paperless • Better utilization of labor by cycle counting during slow periods

39. Task Manager

40. Task Manager Benefits • Manage proactively; predict staff requirements early and dynamically as situations change • Objectively measure staff performance and activity levels • Improve customer service; instantly identify the status of any order • Provide powerful support data

41. Extensive User Control • Extensive definitions of user permissions • Variable picking validation • Configurable System Operation - Extensive build in ‘switches’ for system operation choices

43. ArcLogistics Complete, Easy to Use Routing Solution for Your Desktop

44. “Getting the right Goods or Services to the right Place at the right Time for the least Cost” What is “Logistics”

45. The Supply Chain Process The Customer Delivery & Service Marketing & Sales Order Fulfillment Order Creation Inventory Deployment Order Entry Production Planning Inventory Management Purchasing Production

46. ArcLogistics Route The Customer Delivery & Service ArcLogistics Route is for Delivery and Field Service Vehicle Routing and Scheduling

47. ArcLogistics Route The Customer Delivery & Service Perhaps THE most important Link in the Supply Chain… ...the link the customer sees.

48. A Balancing Act Customer Satisfaction Cost Why is Vehicle Routing & Scheduling Important? Mileage Time Windows Maintenance Cycle Time Wages Accuracy Fuel Quality Efficiency Accountability Productivity Overtime

49. Why is it important? • Customer Satisfaction (Sales) • Logistics Costs 10-15% of Revenue (Profit) Good Logistics = Sales and Profit Problem: Finding the Balance

50. What is ArcLogistics Route? How does it help?