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Warehouse Management Overview
MARCH 15, 2016
Developing a Successful WMS Strategy
2
A Need for Change
• Fulfillment Processes Integrated with Partners
• Support All Company Processes (e.g. SCM, MFG)
• Automated Material Handling for Improved Productivity
• Mobile and Automatic Data Capture (e.g. Handheld)
• Streamlined Material Flow (e.g. Cross-Docking)
Leading Business Trends
3
Support for the Integrated Enterprise
Built-In, Not Bolt-On Functionality
• Eliminate
Integration
• Reduce Cost
and Complexity
• Reduce Risk and
Upgrade Issues
• Eliminate
Problems with
Reconciliation
• Simplify Support
MSCA &
Warehouse
Management
Service Finance Planning
Procurement Manufacturing Fulfillment
4
A Complete WMS Solution
Seamless
Integration
RTVs
Orders
Transfers
RMAs
Purchases
Transfers
Global Visibility
RF Support
Planning Manufacturing FulfillmentPurchasing
Inspect
Receive
Ship Pack
Directed
Pick
Cost
Assemble
WIP
Issues
Transfer
Count
Move
Replen-
ish
Label
Cross Dock
Putaway
5
Key Features
• WMS is advanced inventory module with lot of unique features that
improves productivity of distribution centers, manufacturing or
inventory handling facilities.
• WMS supports manual data entry, bar code readers scanning for
data entry
Key business processes supported by Oracle WMS:
• Inbound Logistics (receiving, supplier returns, corrections)
• Stocking and internal inventory movements
• WIP Job assembly completion, component issues
• Outbound Logistics (picking, packing, shipping)
• Reverse logistics (customer returns)
6
Key Features (continued)
License Plate Numbers (LPN): LPN is an object carries the location where it is residing
and items that are holding. LPN do not need to be a physical object, it could be logical
grouping. LPN simply a group of items represented systematically. The major advantage
of LPN is less number of transactions.
Material Status: This is one of the best features of WMS, we can assign status to an
item, lot or serial number. Each status is defined with a list of transactions.
Label Printing: WMS partially supports this functionality. We can define label formats and
fields (data) needed, we can associate this with WMS rules to print the label automatically.
Cost Groups: This is another major functionality offered by WMS module. In standard
Inventory module Inventory valuation accounts are derived by subinventory setups In
WMS based on cost group rules we can have different valuations.
Putaway Rules: When a material is received you need to receive into stock. WMS offers
putaway rules that can be setup based on business criteria (e.g. If all hazardous material
category must be received into hazardous area then putaway rules can be setup.
WMS Rules: WMS rules engine enforces the rules defined for putaway, cost group or
label printing. We can simulate the results based on set of rules defined.
7
Rules Driven Processes
Flexibly Meet Needs without Customization
User Defined
Strategies & Rules
(e.g. > 30 Days Shelf Life)
Transaction
(e.g. Pick)
Suggestions
(e.g. LPNs
or Locators)
• Eliminates customizations
• Supports common tool
with examples
• Easily changed and evolved
• Improves ROI and
ongoing support
• Accelerates implementation
• Increases long-term flexibility
Support for: Directed Picking, Directed Put-away,
Tasks Assignment, Costing, Labeling
8
Improve Warehouse Mgmt Function
Increase Efficiency of All Resources
Worker Productivity
• Automate Warehouse
Processes
• Optimize Task
Assignments
• Reduce Worker
Travel Time
Resource Utilization
• Optimize Total
Warehouse Space
• Maximize Use of
Equipment
• Optimally Locate
Inventory to Reduce
Travel Time
Warehouse Efficiency
Inventory Utilization
• Reduce Inventory
Carrying Costs
• Streamline
Material Flow
• Reduce Inventory
Obsolescence
• Automate
Replenishment
9
Directed Picking and Put Away
Automatically Suggest Optimal Locators
• Slot dynamically based
on velocity, size, etc.
• Control hazardous materials /
co-mingling
• Handle task exceptions with
reason codes
• Optimize the use of
storage locations
• Minimize inventory
fragmentation
• Reduce chance
of obsolescence
Receipt
Business
Logic
Locator
Locator
Locator
Pick
10
Advance Inventory Capabilities
• Maintain Accurate, Real-Time Information
- Physical inventory measurement
- Holding and other associated costs
- Cycle counting
• Manage Inventory Levels
- Automated replenishment
- Kanban management
- Transfers between facilities
• Support Advanced Tracking Capabilities
- Material status control
- Inventory ownership tracking
- Advanced lot and serial control
Provide Single Source of Truth for All Inventory
11
WMS and Manufacturing
• Solution Integration Enables:
- Task-managed component picks
- Cross-dock to / from manufacturing
- Directed ship from manufacturing
- Compliance labeling
- LPN and lot / serial creation
and tracking
• Supports Full Spectrum of Tasks:
- Simple kitting to full BOM / work
order jobs
- Seamless ATO, CTO, PTO flow
Sales
Orders
Manufacturing
Processes
WMS Solution
Extends Beyond Sales Order Inputs
12
Lessons Learned
• Change is hard…don’t under estimate change management
(clear/frequent communications, set expectations, Listen to concerns &
document, etc...)
• Very important to take the time to educate and Train the users on both
System and Process –Keep it Simple
• Pre –Implementation:
- Senior Management Support is Critical
- Define To Be Processes
- Strong Cross Functional team
• Make good on promise for future releases for features out of scope
initially
• Having the right partner -experienced Business Process consultants
• Be willing to Travel and educate on Vision
- collaborate effectively internally to optimize processing
- work closely with key suppliers and customers
- effectively apply technology as an enabler
13
Conclusion
ü Improved productivity
ü Optimize Business Processes (research trends)
ü Reimplement Oracle WMS makes good business sense
Inbound
Internal
Processing
Outbound
• Purchases
• Mfg / Assembly
• Transfers
• Outside Processing
• Customer Shipments
• Vendor Returns
• Transfers
• Outside Processing
• Pick
• Pack
• Inspection
• Count
• Assembly
• Storage
• Move
• Replenish

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Warehouse Management Overview

  • 1. Warehouse Management Overview MARCH 15, 2016 Developing a Successful WMS Strategy
  • 2. 2 A Need for Change • Fulfillment Processes Integrated with Partners • Support All Company Processes (e.g. SCM, MFG) • Automated Material Handling for Improved Productivity • Mobile and Automatic Data Capture (e.g. Handheld) • Streamlined Material Flow (e.g. Cross-Docking) Leading Business Trends
  • 3. 3 Support for the Integrated Enterprise Built-In, Not Bolt-On Functionality • Eliminate Integration • Reduce Cost and Complexity • Reduce Risk and Upgrade Issues • Eliminate Problems with Reconciliation • Simplify Support MSCA & Warehouse Management Service Finance Planning Procurement Manufacturing Fulfillment
  • 4. 4 A Complete WMS Solution Seamless Integration RTVs Orders Transfers RMAs Purchases Transfers Global Visibility RF Support Planning Manufacturing FulfillmentPurchasing Inspect Receive Ship Pack Directed Pick Cost Assemble WIP Issues Transfer Count Move Replen- ish Label Cross Dock Putaway
  • 5. 5 Key Features • WMS is advanced inventory module with lot of unique features that improves productivity of distribution centers, manufacturing or inventory handling facilities. • WMS supports manual data entry, bar code readers scanning for data entry Key business processes supported by Oracle WMS: • Inbound Logistics (receiving, supplier returns, corrections) • Stocking and internal inventory movements • WIP Job assembly completion, component issues • Outbound Logistics (picking, packing, shipping) • Reverse logistics (customer returns)
  • 6. 6 Key Features (continued) License Plate Numbers (LPN): LPN is an object carries the location where it is residing and items that are holding. LPN do not need to be a physical object, it could be logical grouping. LPN simply a group of items represented systematically. The major advantage of LPN is less number of transactions. Material Status: This is one of the best features of WMS, we can assign status to an item, lot or serial number. Each status is defined with a list of transactions. Label Printing: WMS partially supports this functionality. We can define label formats and fields (data) needed, we can associate this with WMS rules to print the label automatically. Cost Groups: This is another major functionality offered by WMS module. In standard Inventory module Inventory valuation accounts are derived by subinventory setups In WMS based on cost group rules we can have different valuations. Putaway Rules: When a material is received you need to receive into stock. WMS offers putaway rules that can be setup based on business criteria (e.g. If all hazardous material category must be received into hazardous area then putaway rules can be setup. WMS Rules: WMS rules engine enforces the rules defined for putaway, cost group or label printing. We can simulate the results based on set of rules defined.
  • 7. 7 Rules Driven Processes Flexibly Meet Needs without Customization User Defined Strategies & Rules (e.g. > 30 Days Shelf Life) Transaction (e.g. Pick) Suggestions (e.g. LPNs or Locators) • Eliminates customizations • Supports common tool with examples • Easily changed and evolved • Improves ROI and ongoing support • Accelerates implementation • Increases long-term flexibility Support for: Directed Picking, Directed Put-away, Tasks Assignment, Costing, Labeling
  • 8. 8 Improve Warehouse Mgmt Function Increase Efficiency of All Resources Worker Productivity • Automate Warehouse Processes • Optimize Task Assignments • Reduce Worker Travel Time Resource Utilization • Optimize Total Warehouse Space • Maximize Use of Equipment • Optimally Locate Inventory to Reduce Travel Time Warehouse Efficiency Inventory Utilization • Reduce Inventory Carrying Costs • Streamline Material Flow • Reduce Inventory Obsolescence • Automate Replenishment
  • 9. 9 Directed Picking and Put Away Automatically Suggest Optimal Locators • Slot dynamically based on velocity, size, etc. • Control hazardous materials / co-mingling • Handle task exceptions with reason codes • Optimize the use of storage locations • Minimize inventory fragmentation • Reduce chance of obsolescence Receipt Business Logic Locator Locator Locator Pick
  • 10. 10 Advance Inventory Capabilities • Maintain Accurate, Real-Time Information - Physical inventory measurement - Holding and other associated costs - Cycle counting • Manage Inventory Levels - Automated replenishment - Kanban management - Transfers between facilities • Support Advanced Tracking Capabilities - Material status control - Inventory ownership tracking - Advanced lot and serial control Provide Single Source of Truth for All Inventory
  • 11. 11 WMS and Manufacturing • Solution Integration Enables: - Task-managed component picks - Cross-dock to / from manufacturing - Directed ship from manufacturing - Compliance labeling - LPN and lot / serial creation and tracking • Supports Full Spectrum of Tasks: - Simple kitting to full BOM / work order jobs - Seamless ATO, CTO, PTO flow Sales Orders Manufacturing Processes WMS Solution Extends Beyond Sales Order Inputs
  • 12. 12 Lessons Learned • Change is hard…don’t under estimate change management (clear/frequent communications, set expectations, Listen to concerns & document, etc...) • Very important to take the time to educate and Train the users on both System and Process –Keep it Simple • Pre –Implementation: - Senior Management Support is Critical - Define To Be Processes - Strong Cross Functional team • Make good on promise for future releases for features out of scope initially • Having the right partner -experienced Business Process consultants • Be willing to Travel and educate on Vision - collaborate effectively internally to optimize processing - work closely with key suppliers and customers - effectively apply technology as an enabler
  • 13. 13 Conclusion ü Improved productivity ü Optimize Business Processes (research trends) ü Reimplement Oracle WMS makes good business sense Inbound Internal Processing Outbound • Purchases • Mfg / Assembly • Transfers • Outside Processing • Customer Shipments • Vendor Returns • Transfers • Outside Processing • Pick • Pack • Inspection • Count • Assembly • Storage • Move • Replenish