Warehouse Management System

1. Warehouse Management System

2. Company Profile

3. SOLVO’s History 1992 Solvo founded. First USA-based projects implemented in cooperation with RGTI, BDM, TRW, and MARC (MarcGlobal). 1995 Solvo LLC officially registered in Russia. Solvo started to independently design, develop and implement its own solutions and offer them to Russian businesses. 1999 Finished implementation of two major solutions: Solvo.WMS for warehouse management and Solvo.CTMS for container terminal management. 2005 Solvo’s corporate quality management system certified for ISO 9001:2000. Solvo’s reached 48% share on Russian WMS solutions market. Solvo’s staff exceeded thetotal of 90 employees. Solvo successfully set out to carry out its strategic plans for the warehouse and container terminal management market. Solvo had over 50 projects to its credit, successfully implemented in Russia and the CIS countries. 2006 2007 Solvo’s staff over100 employees. About 80 projects implemented in Russia and abroad. 2008 New Solvo.WMS deployment methodology successfully designed, tested and introduced. 2009 New product line for logistics management brought to market. Over 90 projects successfully implemented. 2010 Solvo’s staff exceeded thetotal of 100 employees. Solvo successfully accomplished its strategic plans for the market of Warehouse and Container Terminal Management systems. Presentation Version 3.1 – 13.12.2010

4. Our Customers in Russia, the CIS and the Baltic countries Over100projects successfully implemented in Russia and near countries

5. Services CONSULTING ADAPTATION AND IMPLEMENTATION TRAINING SUPPORT RADIO-EQUIPMENT IMPLEMENTATION ANDSERVICES

6. System Description

7. Solvo.WMS System Architecture The system is built on client-server architecture, and contains the following major components: DBMS, Core, Interface, Gateway. DBMS The system database is used for data storage. This system is compatible with the extremely low-cost Oracle Standard Edition One DBMS. SYSTEM CORESystem core, based on Unix (Linux) kernel. This is the core of Solvo.WMS, the powerhouse behind all data management. INTERFACE System user interfaces provide graphical representation of data on desktop computers (running on either Windows or Unix OS) and wireless terminal interfaces. GATEWAY Middleware is an interface module, enabling smooth interaction between the Enterprise Resource Planning software and Solvo.WMS. It comprises two parts, which have been developed jointly by Solvo and the ERP suppliers.

8. Technologies The Solvo.WMS is based on 3-tier model. The database is used to store data. Cooperative processes implement business logics. And the GUI client application represents data to the user. Operating systems • Server – Unix/Linux • Client – Unix/Linux, Windows Databases • Oracle • Equipment • LXE • Datalogic • Third-party products • Crystal Reports • BarTender

9. Technologies AUTOMATED IDENTIFICATION ADDRESS-BASED STORAGE REMOTE MANAGEMENT OF PERSONNEL

10. Integration withERPs Solvo.WMS provides integration features to interface it with ERP systems, such as Monolith, Galaktika, Parus, Domino, AX, Microsoft Dynamics Nav, Scala, JD Edwards, Oracle E-Business suite, SAP R 3, etc.

11. Working with Vehicles Each vehicle can be defined to work with specific type of loads and locations. Examples: Loader can work with pallets only in floor locations or shelf locations. Handcart as a vehicle can work with pallets in floor locations. Workercan work with a box in floor location. RT1 MT1 Vehicle type Worker Only pallets Only pallets Only boxes Load type Location type Floor and rack Only floor Only floor

12. Personnel Two categories of employees work with the system: managers and operators. Manager has management functions and works with WMS using PC. Operator works with inventory according to tasks from WMS and using radio terminal screen. The system allows to control which functions and commands are available for each operator. In addition, allowed working areas can be defined. Manager Operator

13. Tasks Task is an assignment to do a certain work in the warehouse. The tasks can be generated by the system automatically depending on a current operation or created manually by the manager. Example: Load is received to warehouse and needs to be stored. One scenario: after receiving a product, the system automatically finds destination locations, generates tasks and assigns them to operators. Another scenario: after receiving a product, manager gives command to the system to find destination locations, generate tasks and assign them to operators. Operators System Tasks Operation confirmations Process System System assigns to putaway loads into storage locations

14. Task Dispatching The operator receives task assignments via a radio terminal and confirms them by scanning the cargo’s or location’s barcode. If RFID technology is deployed, task assignments are confirmed by scanning the RF mark.

15. Task Execution Manager gives commands to the system to move a load to desired place. The system generates a task and assigns it to the operator. System Operator System Operation confirmation Command Task To move load to desired location Operator can move a load from one location to another without a task generated. Operator System Load moved by operator manually Task is not generated Operation confirmation

16. System Functions

17. Basic Functions of Solvo.WMS MONITORING RECEIVING PUTAWAY PRODUCT STORAGE INVENTORY CONTROL ORDER PICKING SHIPPING

18. Receiving Expected receipts ASN receiving Receiving from product lines Receiving from the branches EXPECTED RECEIPTS REPACKING AND LABELING OVERSIZED GOODS RECEIVING CROSS-DOCKING WEIGHT CONTROL QC GOODS CERTIFICATION GOODS LABELING

19. Receive Technology Chain The warehouse manager creates a receipt and sends it for processing before starting the acceptance. 6 2 1 7 Shipment Note Receipt List Generating a receipt Closing the receipt and sending it for processing Host System Host System Printing a receipt list 4 5 3 Placing for Receiving via RDTs Sorting, labeling, andplacing in the receive zone storage Registering goods Goods Unloading Platform Receive Zone Long Storage Zone

20. Receiving In order to help operator identify receiving goods, the system can print a receiving sheet with information about goods and their barcodes. Receipt number Date Names and barcodes are staggered to reduce scanning errors with RF terminal

21. Loads Receiving via RDTs Operator gets a receiving work and can select the type of goods to receive. Operator can receive pallets, cartons or units (eaches) Operator scans barcodes from goods or receiving list. System displays information about the product and allows operator to specify additional parameters of this particular load. RCN: 11 F1 Cartons receiving F2 Pallets receiving F4 Units receiving F5 Block receiving F8 Close RCN F9 Wght After identifying the load the system directs the operator to the location within the receiving area where this load could be placed while waiting for putaway. Pallets RCN: 11 Loc: I-01-01-1 SKU: SKU7........... Estrella Chip..n" 12 PrD: ............... Pckg:60unt15x30x20 Cartons: ........... Pallet: Euro pallet Load: .............. Put pallet: LD00124 To location: I-01-01-1 Loc: ....................

22. Automated Receiving of Loads from Manufacturing Facilities Loads are received automatically. Each outgoing pallet is registered by an optical sensor. The data describing the current load batch includes information on the product type, the number of boxes and items in the pallet, the manufacture date, etc. Then a unique code is generated to mark the load and register it in the System.

23. Manual Receiving of Loads from Manufacturing Facilities The operator specifies the number of the manufacturing batch that designates the product type, the number of boxes and items in the pallet, the manufacture date, etc. Then the operator assigns a unique code to the load and registers it in the System.

24. Putaway Stacker Material handling equipment Vehicles Warehouse operator PUTAWAY RULES STRATEGY OF STORAGE PLACE SEARCHING PUTAWAY OF CONTAINERS ROUTING RULES COMPATIBILITY RULES LOAD MERGING RULES TASK EXECUTION OPTIMIZATION

25. Storage in Racks Conventional racks Gravitation racks Narrow aisles Pallet stacks Cantilever racks Drive-in racks Automated warehouse Stacked racks

26. Order Picking Automated warehouse Drop down Forward pick zones Conveyor ORDER PLANNING CONSIDERING VARIOUS REQUIREMENTS (FIFO/LIFO OR SHELF LIFE/EXPIRATION DATE) HANDLING OF ORDERS HANDLING OF SPECIAL ORDERS HANDLING OF PRODUCT KITS OPTIMIZATION OF PICKING OF PRODUCT ORDER PROCESSING IN DIFFERENT PICKUP ZONES ORDER CANCELLATION AND AMENDMENT PROCESS EXCEPTIONAL SITUATIONS

27. Inventory Control MANUAL COUNTING SYSTEM DIRECTED COUNTING CYCLE COUNTING BY PRODUCT ATTRIBUTES CYCLE COUNTING BY PRODUCT STORAGE LOCATIONS TRACKING COUNTING DISCREPANCIES PHYSICAL INVENTORY COUNTING

28. Order Compilation Technology Chain PROCESSING GENERATING TASKS AND/ORPRINTING PICK LISTS ORDER RECEIVING AND PLANNING MSreserves loads matching the order заказ PL HS MS Order Planning Output PICKING UP MOVING SHIPPING Long Storage Zone Box Picking Zone SHIPPING PL Forwarding

29. Order Picking Picking up items in item and box compilation zone Item compilation zone Control cell System issues pickup tasks Picking up boxes Main warehouse Compilation zone Picking up items, boxes or pallets Main warehouse

30. Reports Standard set of reports gives a manager information about the warehouse itself and about employees and other resources. Additional reports could be designed by the customer using Crystal Reports engine that is integrated with WMS.

31. Shipping Sorting Labeling Packing Loading PACKING SORTING LABELING ORDER GROUPING CONTROL VEHICLE LOADING VEHICLE LOADING OPTIMIZATION LOADING OF VEHICLES REGARDLESS OFORDER CONTINUITY PROCESS AND ANALYZE STATISTIC DATA

32. Basic Configuring Rules

33. General Notion of Rules The system is guided by rules for planning tasks: putaway rules, routing rules, merging rules and so on. Most of them may be changed in real-time and would adjust the system operations. Putawayrules Routing rules

34. Warehouse Topology The Warehouse Topology window is used to visualize the warehouse situation and employees’ locations. The degree of zone filling-up is indicatedby color.

35. Zones, Logical Groups, and Locations Warehouse location hierarchy and logical groups give a flexible mechanism for configuring the warehouse.

36. Employees Employee privileges as well as working areas are the basic tools to manage warehouse resources effectively.

37. Putaway and Routing Rules Using put-away and other types of rules combined with warehouse areas and groups allow for reconfiguring the warehouse on the fly.

38. Order Planning and Picking Rules Each warehouse has its own specifics for planning and picking orders that could be configured with special set of rules.

39. Solvo.Web andSolvo.Billing Add-On Modules

40. Interaction Structure

41. Web Portal: Requests View

42. Solvo.Billing: Basic Notions

43. Service Providing

44. Payment Calculation for Rendered Services

45. Equipment Integration Features SOLVO’s extensive experience in implementing warehouse automation projects includes expertise in integrating the system with various kinds of warehouse operation equipment. Solvo.WMS can work with automated warehouses, cantilever racks, radio shuttles, conveyors, flow racks, etc. AUTOMATED WAREHOUSES FLOW RACKS CONVEYORS RADIO SHUTTLES

46. Equipment Integration Features LABELING EQUIPMENT APPLICATORS WEIGHING EQUIPMENT

47. Efficiency Benefits

48. Project Cost-Efficiency Benefits PERSONNEL MANAGEMENT MAINTENANCE COSTS • Material handling equipment rational utilization • Equipment deployment optimization • Reduce transportation costs (save fuel and electricity, reduce maintenance costs and extend material handling equipment exploitation term) • Increase personnel management efficiency • Eliminate unpredictable circumstances and expose guilty • Reduce entire operational time • Enhance labor productivity by 20-30% on average CUSTOMER RELATIONS MANAGEMENT ACCOUNTING ANDDOCUMENT CIRCULATION • Eliminate non standard order shipment • Documentation extra shipment or order return • Lower expired product write-off costs • Increase quality of services • Data access in real time mode • Speed up data interchange • Reduce paper work • Inventory control without interrupting warehouse operation • Integration with corporate systems

49. Economic Efficiency Benefits LOGISTICS • Flexibly prioritized and optimized flows of goods and resources. • Increased data accuracy (up to 99.9%) for exact quantity and location of goods within warehouse. • Full visibility of product flows and distribution. • Improved product placement to increase warehouse storage capacity by 5 to 25%. • Accelerated product distribution. • Lowered costs for writing-off overdue time-sensitive products.

50. Pharmaceutics «Solvo.WMS solution enables us to provide a high level of control over inventory flow and labor productivity as well as to accurately track every picking and shipping operation. It ensures real time information on product available for shipment. Additionally, we optimized utilization of warehouse facilities and reduced order picking costs…”. «Developed to our unique specifications, Solvo.WMS fully meets our requirements… The entire implementation process went extremely smooth, and was completed within to our strict deadline» Oblastnaya Aptechnaya Kompania, DonFarm Holding, (Apteka Holding), Donetsk, Ukraine Yuriy Koba, Executive Director