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• Cognizant 20-20 Insights




Using Mobility to Elevate Warehouse
Management
Enterprise mobility promises to infuse warehouses with greater agility
and nimbleness, but getting there requires that manufacturers take a
phased approach, dissecting every operational function and identifying
key imperatives and process enhancements along the way.


      Executive Summary                                    business value. It is a key enabler of warehouse
                                                           efficiency, flexibility and nimbleness, allowing
      Without a proper dose of automation, warehouse
                                                           manufacturers to live the future of work, today.
      managers are unable to achieve the operational
      performance and cost efficiencies needed to          This white paper explores areas where mobility
      contribute to the greater good of the manufac-       can be utilized and the key considerations for
      turing enterprise. This is particularly important    deploying mobility in a typical warehouse.
      in materials handling, where the slightest inef-
      ficiency can lead to operational slowdowns and       Mobility in Warehouse Management
      reputational damage with business partners and
                                                           Adopting mobility can boost the number of orders
      customers. To meet the requirements of increas-
                                                           and packages processed daily by facilitating the
      ingly demanding customers — where doing more
                                                           whole range of warehouse functions from picking,
      with less is a business imperative — warehouse
                                                           put away, packaging, labelling and shipping,
      managers are laser focused on IT-enabled process
                                                           through receiving and cross-docking. For example,
      changes that drive operational nimbleness and
                                                           in the receiving area a warehouse operator can
      flexibility, with continuous focus on improving
                                                           scan and identify incoming shipments and then
      efficiency and productivity in significant ware-
                                                           reroute, inspect or relabel them. Similarly, in the
      housing tasks such as picking, put away, shipping,
                                                           shipping area an operator can scan outgoing
      cross-docking, etc.
                                                           packages to ensure order accuracy and can route
      Enterprise mobility, according to both IDC1 and      them accordingly to the correct dock door or
      Gartner,2 is among the “four forces” shaping busi-   carry out any required value-added services as
      ness-IT transformational decisions by delivering     prompted on the mobile device.
      exponential productivity gains and incremental




      cognizant 20-20 insights | march 2013
Enabling the Mobile Warehouse


                                                    Management & Supervisory Functions


                Real-Time Approvals               BI and Reporting               System Administration             Ad-hoc Label Printing




                                                          Cross-Docking
              Inbound
              Material                                                                                                         Inventory
             Processing                       Directed Put Away                       Inventory Transactions                  Management

                                 Material Inspection                                                 Purchase Requisition

                  Material Receiving                                                                           On-Demand Stock Information


           Inbound Scheduling                                                                                             Cycle Counting


           Fleet Management                                                                                               Physical Inventory Counting

           EPOD/EPOC                                                                                                      Stock Management

           Shipment Tracking                                                                                              Job Scheduling


                Packing, Loading and Shipping                                                        Replenishment Transactions



                          Dispatch Planning                                                   Consigned Inventory / VMI


                                        VAS/Kitting/De-kitting                       Material Allocation
                  Outbound
                   Material
                  Processing                                      Directed Picking




Figure 1




Figure 1 offers a high-level overview of the                                   organizational needs (which are beyond the scope
functions that mobility can support in a typical                               of discussion here).
warehouse.
                                                                               Core Functions
Once the contours of where mobility can help in                                Inbound Materials Processing
warehouse operations are defined, warehouse
                                                                               The processes involving the receipt of goods into
managers can delve deeply to obtain a detailed
                                                                               the warehouse can greatly benefit from the use
understanding of how ground-level functions
                                                                               of mobility. Figure 2 (on page 3) illustrates how
can actually be mobile-enabled and explore the
                                                                               mobility can be integrated with inbound materials
benefits that can and should be derived from
                                                                               processing along with the benefits of doing so.
such initiatives.
                                                                               Inventory Management
The functions outlined in Figure 1 can be executed
using different types of handheld mobile devices,                              Inventory management is a core area within
including scanners, mobile computers and vehi-                                 warehouse management where mobility can
cle-mounted devices, or a combination of these.                                bring high levels of efficiency. Figure 3 (on page
The selection of these devices for each function                               4) shows how mobility can be integrated with
depends on parameters ranging from the ware-                                   inventory management functions along with the
house’s physical environment, the materials it                                 associated benefits.
deals with, Cap-Ex availability and other specific




                                 cognizant 20-20 insights                       2
Mobility’s Inbound Materials Processing Benefits
    Function                       How to Enable Mobility                                   Benefit
                  Real-time updates can be exchanged using mobile devices       Reduction in waiting time for
                  between incoming shipments and the warehouse to facilitate    vehicles at the receiving dock.
    Inbound
                  efficient inbound scheduling. Based on these updates, the
   Scheduling     dock door assignments can be created and altered on a
                  real-time basis.
                  Inbound materials can be scanned, verified and received       Flexibility at the floor level
   Materials      in the warehouse using a mobile device. The mobile device     along with real-time updates.
   Receiving      can be used to update the receipt status in the enterprise
                  system in real time or in batches.
                  Based on preconfigured quality plans within the enterprise    Reduction in overall time and
                  system, inbound materials inspection can be carried           hence cost of quality assurance
                  out and the data can be entered for comparison against        activities.
    Materials
                  approved specifications using mobile devices. This can
   Inspection     direct the warehouse worker to take the necessary action
                  for inspection results based on pre-configured rules in the
                  enterprise system.
               Mobile devices can provide real-time visibility to orders        Reduction in time and effort
               requiring cross-docking and suggest suitable inbound             needed to match inbounds and
 Cross-Docking shipments for fulfilment. Material can be allocated to these     outbounds for cross-docking.
  Suggestions orders on the mobile device and shipped directly without          Possibility for enabling cross-
               having to be routed through the warehouse’s inventory.           docking in warehouses that are
                                                                                unable to use this best practice.
                  Spot suggestions of locations for put away of materials can   Saves time and effort for
                  be displayed on mobile devices based on custom logic and      material consolidation while
                  rules depending on warehouse layout, location of existing     improving concurrent informa-
  Directed Put    items, item type and other parameters. Suggestion-based       tion availability.
      Away        put away using mobility will enable easy consolidation of
                  material in the warehouse based on any chosen parameter.
                  In addition, mobility can enable scanning as opposed to
                  manual key-in and real-time update of inventory records.
Figure 2

Outbound Material Processing                               engagement. Irrespective of the approach taken,
In many businesses, a warehouse’s efficacy is              deploying mobility in a warehouse requires special
determined by how well it is able to process               care across numerous aspects due to its process-
outbound orders. Figure 4 (on page 5) highlights           intensive nature, coupled with the fact that it is
how mobility can be integrated with functions              a core component of the manufacturing value-
of outbound material processing along with the             delivery mechanism. Thus, it is imperative that the
associated benefits.                                       deployment blends in smoothly with day-to-day
                                                           activities and causes minimal disruption. Figure
Management and Supervisory                                 6 (on page 6) lays out our recommendations for
Functions                                                  a seamless deployment of mobility across the
Besides the core warehousing functions, there              warehouse functions.
are various management and supervisory
                                                           Objective Definition
functions performed by warehouse managers
                                                           In this stage, the general approach will involve
and shop floor supervisors that mobility can ben-
                                                           identifying the strategic or tactical objectives that
eficially transform. Figure 5 (on page 6) reveals
                                                           drive the introduction of mobility in warehouse(s).
how mobility can help such functions along with
                                                           For example, the objectives can be improving
the benefits.
                                                           inventory management, bringing down costs
Mobility Deployment Considerations                         without impacting service, improving worker
in a Warehouse                                             safety and/or achieving regulatory compliance.

Deploying mobility in a warehouse requires a dis-          Balance Top Floor and Shop Floor Goals
ciplined approach to achieve its full potential. The
                                                           Management buy-in for the mobility program will
deployment can either be a part of the organiza-
                                                           ensure tight alignment of the technology with
tion’s overall IT strategy or a warehouse-focused


                       cognizant 20-20 insights            3
Mobility’s Inventory Management Benefits
     Function                      How to Enable Mobility                                     Benefit
                   Purchase requisitions can be raised right at the point of      Reduction of purchase lead
     Purchase
                   source of demand in shop floors and warehouses using           time.
    Requisition    mobile devices.
                   Basic inventory transactions such as issue, receipt,           Improving concurrent informa-
                   transfer of goods, etc. can be carried out using mobile        tion availability and eliminating
     Inventory     devices. The mobile application can provide information        additional effort for maintaining
   Transactions    about the current location of materials, destination of        updated information.
                   materials, handling instructions and all other related data
                   so the user can carry out the specific transaction.
                   Real-time information regarding availability of stock and      Improving concurrent infor-
   On-Demand       other stock-specific information can be made available on      mation availability for faster
  Stock Informa-   mobile devices from anywhere, anytime. Information can         decision-making.
       tion        be queried via different methods (e.g., item-based inquiry,
                   location-based inquiry, etc.).
                   Cycle count orders can be executed by scanning items           Reduction in counting effort
                   planned for count at any location using a mobile device.       and enforcement of better
 Cycle Counting    The mobile application can keep track of the count and         operational discipline.
                   pending items while it can also require users to verify item
                   and lot information.
                   Physical counting of all items in particular inventory         Reduction in counting effort
     Physical      locations can be handled using a mobile device. The appli-     and concurrent update of
    Inventory      cation can keep track of the counts and also allow entry       information
    Counting       of items which did not have system records and hence for
                   counts that were not generated.
                   Mobile applications can be used for stock management           Reduction in stock management
     Stock
                   including updating the stock quantities, stock condition,      effort with concurrent informa-
  Management       location, pack details, registering stock relocations, etc.    tion availability.
                   Real-time notification of job and flow scheduling can          Better availability of concurrent
                   be sent to shop floor workers on mobile devices. Also,         information.
 Job Scheduling
                   dynamic status updates on work orders and assembly
                   completion can be propagated using mobile applications.
                   Inventory levels can be managed using the enterprise           Reduction in time and effort for
                   system’s planning and replenishment features (e.g.,            carrying out replenishments,
 Replenishment     min-max, Kanban, etc.) that includes generating preap-         thus increasing material avail-
  Transactions     proved move orders. These move orders can be effectively       ability.
                   tracked and transacted using a mobile device on the shop
                   floor.
                   Rule-based material allocations created by the enterprise      Time savings by providing
                   system for different kinds of move orders such as              ground level flexibility in
                   outbound orders, issues to shop floor, inventory transfers,    handling material allocations.
    Materials
                   etc. can be viewed and managed using mobile devices. In
    Allocation     cases where these need modification, such requests can
                   be initiated, reviewed and approved by appropriate users
                   based on configured workflow using their mobile devices.
  Consigned/       Consigned or vendor-managed inventory can be received          Effort reduction in consignment
    Vendor         on a mobile device using a single receipt transaction to       inventory management.
                   create the order line and receive the goods in a single
  Management
                   step by pre-configuring the rules for order and line
   Inventory       creation.
    Receipt

Figure 3




                      cognizant 20-20 insights              4
Mobility’s Outbound Materials Benefits

    Function                          How to Enable Mobility                                      Benefit
                  Pick lists generated by the enterprise system and assigned to          Time and hence cost
                  specific users based on business rules can be viewed by warehouse      savings in one of the
                  workers on their mobile devices. These tasks are then executed by      most significant ware-
    Directed
                  the user, based on directions provided by the mobile application       housing processes —
    Picking       that optimizes the task at every point based on material avail-        order picking.
                  ability, route and other variables. The mobile application can also
                  update the system concurrently with the current task status.
                  Tasks related to containerization, labeling, loading and shipping      Time and cost savings
    Packing,      can be administered and executed using mobile devices. Specific        through efficient
                  instructions can be transmitted to workers carrying out these tasks    execution of packing
  Loading and
                  in the form of mobile notifications. Additional information such as    and shipping process.
   Shipping       cost items for shipping charges, outside service tracking numbers,
                  etc. can be captured at this level using a mobile device.
                  Dispatches can be prioritized and hence accelerated by providing       Time savings and
                  the dispatch planning system, real-time mobile updates on the          accuracy of dispatches
    Dispatch      readiness of shipments and other delivery requirements. Pre-           by priority and delivery
    Planning      dispatch tasks can be tracked through mobile devices and the           requirements.
                  information can be constantly fed to the dispatch planning system
                  in real time to enable this.
                  Tasks for value-added transactions such as packing material as         Increased efficiency and
  Value-Added     per delivery requirements, gift wrapping, etc. along with specific     accuracy in executing
   Services/      instructions can be dispatched through mobile devices based on         value-added services.
    Kitting,      requirements recorded in the system. Tasks such as kitting and
   De-kitting     de-kitting before dispatch can also be administered and executed
                  through mobile devices.
                  Real-time information can be effectively tracked on delivery, stops,   Enhanced tracking
                  diversions and breakdowns by shipment handlers using mobile            efficiency and greater
   Shipment       devices to provide updates and even request service. Tracking          customer satisfaction.
   Tracking       information at this level can help by providing customers with
                  exact information on the status of shipments, which is important
                  for B2C companies.
                  Dynamic optimization can be achieved in fleet utilization by           Cost reduction through
                  receiving location and status updates of vehicles in real time         efficient fleet utilization
                  using mobile devices. Also, dispatches can be consolidated and         and management.
     Fleet
                  optimized based on concurrent information. Route optimization
  Management      can be achieved based on real-time information being received
                  from mobile-enabled vehicles to enable traffic updates, weather
                  conditions and other geo-relevant information.
   Electronic     Electronic proof of delivery/collection along with signature capture   Time savings in
    Proof of      can be implemented using mobile devices. The delivery person can       obtaining proof of
                  use a specialized mobile device to record the acknowledgement          delivery and updating
   Delivery/
                  from customer and to concurrently update status.                       delivery status.
   Collection
 (EPOD/EPOC)

Figure 4



the organization’s overall strategic objectives.           Put Numbers to Objectives
This approach will help ensure the organization            It is a good practice to calibrate objectives with
achieves synergistic benefits over the long term.          numerical targets where quantitative measure-
On the other hand, it is also imperative that              ments are feasible. This will help justify the invest-
these objectives address key and significant pain          ments needed for the deployment as well as make
points of the warehouse workforce, as well as the          it easy to measure the results post-deployment.
function. This will drive active participation and         It may be difficult to assign exact numerical
wholehearted adoption of mobility solutions by             targets in most cases, so ballpark objectives can
key stakeholders.                                          be set. For example, if inventory reduction is an



                       cognizant 20-20 insights             5
Mobility’s Supervisory Benefits
      Function                                       How to Enable Mobility                                                      Benefit
                              Real-time approvals can be provided by supervisors and                            Time savings leading to
                              administrators for all warehouse processes using mobile                           cost savings through faster
     Real-Time                applications. When an activity requiring approval is                              execution of processes.
     Approvals                recorded, notifications are received by the supervisor(s)
                              (based on pre-configured workflows), who can review and
                              approve/reject the request concurrently from his device.
                              Business intelligence and analytical tools can be used to                         Faster and effective access
                              generate ad hoc reports with interactive charts and layouts                       to intelligent information and
  Business Intel-             on mobile devices that can be accessed from anywhere,                             analysis leading to efficient
   ligence and                anytime. This can take advantage of information updates                           decision-making.
    Reporting                 provided through mobile devices in near-real time, thus
                              giving scope to execute and track key warehousing aspects
                              such as predictive replenishments, hours accounting, etc.
                              Some basic system administration functions such as user                           Time savings through ease of
                              administration, device administration and parameters                              configuration management.
                              administration can be made accessible through mobile
 System Adminis-
                              devices to administrators who work in distributed environ-
      tration                 ments (e.g., modifying user access to specific functions,
                              changing device configurations, changing parameter values
                              of system parameters, etc.).
                              Ad hoc label printing requests can be made through mobile                         Time savings through ease of
   Ad Hoc Label
                              devices from any point in the warehouse whenever needed                           making print requests from
     Printing                 by any user who has access to the specific function.                              anywhere.

Figure 5




objective, then mobility deployment can target a                                 flow and the other objectives already defined.
7% to 10% reduction in inventory.                                                The underlying focus will be to integrate mobility
                                                                                 into the host of activities needed to maximize
Process Evaluation                                                               deployment benefits.
This requires an intensive evaluation of the
warehouse processes in light of the objectives                                   Mobility for Business Goals, Not Vice Versa
defined in the previous stage. Evaluation and                                    It is important to keep in mind that the objectives
analysis of key processes should result in reen-                                 of deploying mobility, which were identified in
gineering for improved execution efficiency in                                   the first stage, were to help attain business goals
terms of cost reduction, speed, error reduction,                                 rather than deployment of a mobility strategy
productivity improvement, agility of information                                 and devices. For example, suppose the existing


Key Considerations for Successful Warehouse Mobility Deployments

      Objective              Process               Solution              Build           Pilot Testing       Deployment             Support &
      Definition             Evaluation            Designing                                                                          Scale-up

    Balance Top Floor     Mobility for         Design for a          Choose Vendors     Measure the          Deploy Warehouse     Set Up a
    & Shop Floor Goals.   Business Goals.      Phase-Wise            for Solution.      Business, Not Just   by Warehouse.        Centralized
    Put Numbers to        Evaluate Warehouse   Implementation.       Follow Iterative   the System.          Train Optimally.     and Remote.
    Objectives.           Environment &        Take the “App-Way.”   Builds.            Choose the Right                          Management
                                                                                                             Evaluate a Remote
                          Usability.                                                    Warehouse for                             Infrastructure.
                                               Involve End Users.                                            Setup Option.
                          Keep the Techno-                                              Pilot.
                                               Minimize Design
                          Functional View.     Complexities.




Figure 6




                                 cognizant 20-20 insights                         6
way of working involves inbound material put          Design for a Phase-Wise Implementation
away and inventory consolidation as two separate      An effective approach for implementing mobility
processes and one of the objectives is to optimize    in a warehouse is to create a phased implemen-
inventory handling costs. The reengineered            tation plan based on criticality of functionalities,
process should involve mobility-enabled directed      possibility of disruptions of critical processes,
put away which handles consolidation automati-        availability of resources and
cally rather than keeping put away and consoli-       budget constraints. This step
dation as two separate processes and mobile-          kicks off the phased plan
                                                                                       An effective approach
enabling each process individually.                   because at this point, a more for implementing
                                                      complete view of the process mobility in a warehouse
Evaluate Warehouse Environment and Usability
                                                      level requirements, techno-
It will be comparatively easier to assess the         functional needs, environ-
                                                                                       is to create a phased
environmental conditions in this stage while          mental needs and usability implementation plan
evaluating the processes. Detailed notes can be       requirements is available. based on criticality
made here regarding circumstances such as dust        On the other hand, the con-
exposure, extreme temperatures, possibility of        siderations of a phased
                                                                                       of functionalities,
contact with liquids and chemicals, possibility of    plan can be more easily possibility of
drops and wash-downs and other such conditions        absorbed in the technical disruptions of critical
experienced across various processes. Notes           design, functional design,
should also be taken for possible usability details   procurement needs, setup
                                                                                       processes, availability
such as the need for scanners, keyboards, touch-      and installation needs, etc. of resources and
enabled interfaces, cameras or other such needs       — which will be challenging budget constraints.
for the activities being chalked out. These will      once the design is finalized.
form valuable inputs while deciding the hardware
features and form-factor requirements of the          Take the ‘App-Way’
solution.                                             An app-based approach rules the world of mobility
                                                      today and is expected to prevail for the foresee-
Keep the Techno-Functional View
                                                      able future due to key benefits such as the ease
The other key imperative is to determine techno-      of deployment and maintenance, scalability and
functional requirements such as flow of informa-      flexibility it provides. (A detailed discussion on
tion, workflow needs, communication enhance-          this topic is beyond the scope of this white paper.)
ment needs, etc. while evaluating and redesigning     Designing the warehouse mobility solution on
processes. This ensures more integrated brain-        an app-based architecture will help in leveraging
storming and eliminates the need to evaluate          those benefits. Each function can be deployed as
these activities at a later stage.                    a separate app, installable from an organization
                                                      wide “app-store.” Users can have access to apps
Solution Designing
                                                      based on their roles and the functions they execute
The next stage involves detailing the complete        on the ground. (For more insights on this subject,
solution by integrating both hardware and             see our white paper “Enterprise Mobile Apps: How
software design requirements. The hardware            Role-Based Apps Will Drive Productivity and Trans-
design will contain details of the kinds of mobile    formation in Manufacturing Companies.”) Some
devices required along with their expected            obvious benefits of this would be efficient access
features and functionalities, device form factors,    control, better supportability and maintainability,
communication protocols, network requirements         easier collection of feedback and issue tracking,
and other hardware and infrastructure needs. This     efficient scalability, etc. Ideally, the apps should be
should also take into account the environmen-         designed to handle broader functions end to end;
tal and usability needs detailed in the previous      however, if functional interdependencies cannot
stage. The software design will detail the mobili-    be completely eliminated, they can be addressed
ty-driven functional model required in the system     by creating app dependencies requiring installa-
to enable reengineered process flows from the         tion of all interdependent apps.
previous stage. This should also detail the data
flow, computational needs and algorithms, state       Involve End Users
diagrams, user interfaces and system interfaces       At this stage, it is possible to get carried away by
of the solution based on techno-functional needs      the expertise of architects and solution designers
identified in the previous stage.                     while ignoring the actual end users who will use



                       cognizant 20-20 insights       7
the system at the ground level. It is imperative to   Follow Iterative Builds
                verify the design aspects that directly affect the    A significant consideration at this stage will be to
                end users within a chosen sample of users. For        go for an iterative build to deliver on the phased
                example, a picker’s input is important in deciding    plan diagrammed in the previous stage. This will
                whether the mobile devices used for picking           be more streamlined if the phased plan had been
                should have touch-based interfaces or physical        created with the necessary considerations incor-
                keypads. Again, these inputs need to be properly      porated in the design. Also, an app-based design
                moderated in light of technical feasibility and       will be helpful here to build/enhance a set of apps
                budget constraints. In the end, it is good to know    in each phase. This will ensure better cost and
                what can and cannot be provided instead of not        time controls during the build stage, with clear
                providing something that could have been done         milestones and deliverables.
                with ease.
                                                                      Pilot Testing
                Minimize Design Complexities
                                                                      At this stage, a small-scale pilot is deployed to
            The tendency to increase system complexity, in            test the mobility solution with end users. This is
            the design stage, for rare exceptional situations         where the solution deployment steps, installation
                            needs to be curbed to prevent             and go-live sequences and considerations are
   A picker’s input time and cost overruns and
                            ensure a more manageable
                                                                      tested before carrying out actual user acceptance
                                                                      testing. This is also the best time to conduct all
    is important in and supportable solution. For                     necessary measurements for studying the effect
  deciding whether example, ingress protection (IP)                   of deploying mobility in a warehouse once user
the mobile devices sealing levels ofthe current and
                            be in tune with
                                                devices should        testing has started.

   used for picking predictable future environ-                       Measure the Business, Not Just the System
should have touch- ment of operations rather than                     It is very important to perform measurements
based interfaces or making it too future-proof in the
                            on unpredictable changes
                                                         based        focused on the business objectives identified
                                                                      in the first stage of deployment rather than
  physical keypads. work environment. Similarly, it is                merely measuring the performance of the new
                            not advisable to build a complex          system. For example, if inventory reduction was
            feature into the software that will be needed only        a strategic objective of this deployment, there
            in very rare and unpredictable situations without         should be some measure to monitor the inventory
            exploring the existence of potential workarounds.         levels before and after deployment. It is best to
                                                                      not get carried away by measures of how fast the
                Build
                                                                      system is responding and how many defects are
                This stage is where the solution is developed by      present in the software although they too are sig-
                procuring the hardware, developing the software       nificant measurements to be carried out in this
                and installing the infrastructure. As a prerequi-     phase. This is where a real advantage of phased
                site, the organization must evaluate each vendor      building and implementation can be felt. If the
                and make hardware, software and infrastructure        measurement results don’t live up to the targets
                selections based on the organization’s procure-       when the first phase is pilot tested, subsequent
                ment processes and the resource base.                 phases can include the necessary fine-tuning to
                                                                      correct course.
                Choose Vendors for Solution,
                Not Just Products                                     Choose the Right Warehouse for Pilot
                In the vendor selection phase, it is important to     It is crucial for pilot testing to choose a represen-
                choose vendors that can provide solutions for         tative warehouse that covers the orhanization’s
                warehouse mobility deployment — and preferably        core functions and processes. On the other hand,
                have experience doing so. Like all enterprise         it is also imperative to not choose a warehouse
                products, taking a product-specific approach may      for the pilot test that is critical to the business —
                not prove to be effective in attaining end-busi-      one where disruptions would affect an important
                ness objectives. Thus, a vendor that understands      market significantly. Balancing these criteria is key.
                the specifics of the organization’s business, and
                hence its warehousing needs, is typically a more      Deployment
                reliable partner than the one with the lowest-cost    At this stage, the solution is deployed in the
                or most feature-rich product.                         planned warehouses and used to carry out
                                                                      day-to-day business. In the case of a phased


                                       cognizant 20-20 insights       8
implementation, this stage will go live with just        tion, as discussed in the solution designing stage,
the first set of functionalities initially, with more    the support and scale-up of the deployed phases
functionality added at subsequent stages based           continue in parallel to the implementation of the
on the plan created in the solution designing            later phases.
stage. User training is a key activity to be carried
out before going live.                                   Set Up a Centralized and Remote
                                                         Management Infrastructure
Deploy Warehouse by Warehouse                            The costs of support and scale-up can be pro-
It is a good practice to deploy warehouse by             hibitive if it is managed and administered
warehouse. It ensures that the specialists who           locally. It is important to centralize the support
are needed for the go-live can focus on one              of mobile devices and the related infrastruc-
warehouse at a time, thus reducing the total             ture, including the wireless network. Scaling
headcount needed. This also ensures that lessons         up activities executed occa-
learned during previous deployments can be               sionally also needs to be In a phased
carried over.                                            seamlessly deployed to ensure
                                                                                             implementation,
                                                         the least possible disruption
Train Optimally                                          to warehouse operations. as discussed in the
To train all users equally in something as resource      Thus, consider a support and solution designing
intensive as a warehouse can be costly and time-         maintenance       infrastructure
                                                                                             stage, the support
consuming. Instead, it may be optimal to subject         that is centralized and can be
all warehouse workers to a basic training, then          remotely managed. Here, an and scale-up of
provide specialized training that is functionally        app-based implementation, as the deployed
based and focused on key responsibilities, and           mentioned earlier, can prove
                                                                                             phases continue
then handpick a few across all the functions for         very useful since it makes
in-depth training. Those who receive in-depth            maintenance and pushing of in parallel to the
training can then help to train the others when          upgrades far easier and less implementation of
needs arise.                                             intrusive compared to a more
                                                                                             the later phases.
                                                         aggregated system.
Evaluate a Remote Setup Option
The initial setup and installation of mobile devices     Looking Forward
is a time-consuming and costly affair. In most           As IT advances, mobile devices are moving toward
cases, however, it is possible to do this remotely       greater levels of integration with human activity.
from a central location using a staging solution.        Enterprises are using this to their advantage by
The required setup can be pushed to devices on           deploying smart mobile devices and apps that
the ground with little or no end-user involvement.       increase process efficiency and thus enhance
Hence, it is advisable to evaluate a remote setup        productivity by enabling new ways of working.
option wherever feasible.
                                                         Enterprise mobility is the most significant step
Support and Scale-Up                                     in this direction. Successful organizations are
After successful deployment, a continuous                those that use their power to build, operate and
process of support and scale-up of the solution          extend new-age warehouses today. Due to the
is initiated. The deployed solution needs to be          immense benefits, the warehouses of tomorrow
administered, managed and supported actively.            will evolve with tightly interwoven mobility. It is
It is also necessary to scale up the solution from       just a question of which organizations can move
time to time by introducing enhancements in the          fast and are able to differentiate themselves at
form of new functionality, advanced technology           the onset, leaving laggards to play catch-up with
and platform upgrades. In a phased implementa-           market leaders.




Footnotes
1	
     IDC Manufacturing Insights: “Predictions 2012: Manufacturing.”
2	
     Gartner Predicts 2012: “Four Forces Combine to Transform the IT Landscape,”
     www.gartner.com/id=1871420.




                         cognizant 20-20 insights        9
About the Authors
Shreejit Mitra is a Consultant with Cognizant Business Consulting and is a member of its Manufac-
turing and Logistics Practice. His areas of expertise are in supply chain functions such as warehouse
management and field service management. He is currently advising clients on ways to leverage
disruptive technologies such as mobility in their supply chain functions. Shreejit has an M.B.A. from XIM,
Bhubaneswar, and a B.Tech. in computer science and engineering. He can be reached at Shreejit.Mitra@
cognizant.com.

Ganesh Iyer is a Consulting Manager with Cognizant Business Consulting and is a core team member
of the Manufacturing and Logistics Practice. His primary areas of expertise include supply chain
management and business process harmonization. He has extensive experience advising companies on
ERP selection and implementation issues across manufacturing industries. Ganesh has an M.B.A. from
NITIE, Mumbai, and a B.E. in mechanical engineering. He can be reached at Ganesh.Iyer@cognizant.com.




About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out-
sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in
Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry
and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50
delivery centers worldwide and approximately 156,700 employees as of December 31, 2012, Cognizant is a member of
the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing
and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.


                                         World Headquarters                  European Headquarters                 India Operations Headquarters
                                         500 Frank W. Burr Blvd.             1 Kingdom Street                      #5/535, Old Mahabalipuram Road
                                         Teaneck, NJ 07666 USA               Paddington Central                    Okkiyam Pettai, Thoraipakkam
                                         Phone: +1 201 801 0233              London W2 6BD                         Chennai, 600 096 India
                                         Fax: +1 201 801 0243                Phone: +44 (0) 20 7297 7600           Phone: +91 (0) 44 4209 6000
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                                         Email: inquiry@cognizant.com        Email: infouk@cognizant.com           Email: inquiryindia@cognizant.com


©
­­ Copyright 2013, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any
means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is
subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.

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Using Mobility to Elevate Warehouse Management

  • 1. • Cognizant 20-20 Insights Using Mobility to Elevate Warehouse Management Enterprise mobility promises to infuse warehouses with greater agility and nimbleness, but getting there requires that manufacturers take a phased approach, dissecting every operational function and identifying key imperatives and process enhancements along the way. Executive Summary business value. It is a key enabler of warehouse efficiency, flexibility and nimbleness, allowing Without a proper dose of automation, warehouse manufacturers to live the future of work, today. managers are unable to achieve the operational performance and cost efficiencies needed to This white paper explores areas where mobility contribute to the greater good of the manufac- can be utilized and the key considerations for turing enterprise. This is particularly important deploying mobility in a typical warehouse. in materials handling, where the slightest inef- ficiency can lead to operational slowdowns and Mobility in Warehouse Management reputational damage with business partners and Adopting mobility can boost the number of orders customers. To meet the requirements of increas- and packages processed daily by facilitating the ingly demanding customers — where doing more whole range of warehouse functions from picking, with less is a business imperative — warehouse put away, packaging, labelling and shipping, managers are laser focused on IT-enabled process through receiving and cross-docking. For example, changes that drive operational nimbleness and in the receiving area a warehouse operator can flexibility, with continuous focus on improving scan and identify incoming shipments and then efficiency and productivity in significant ware- reroute, inspect or relabel them. Similarly, in the housing tasks such as picking, put away, shipping, shipping area an operator can scan outgoing cross-docking, etc. packages to ensure order accuracy and can route Enterprise mobility, according to both IDC1 and them accordingly to the correct dock door or Gartner,2 is among the “four forces” shaping busi- carry out any required value-added services as ness-IT transformational decisions by delivering prompted on the mobile device. exponential productivity gains and incremental cognizant 20-20 insights | march 2013
  • 2. Enabling the Mobile Warehouse Management & Supervisory Functions Real-Time Approvals BI and Reporting System Administration Ad-hoc Label Printing Cross-Docking Inbound Material Inventory Processing Directed Put Away Inventory Transactions Management Material Inspection Purchase Requisition Material Receiving On-Demand Stock Information Inbound Scheduling Cycle Counting Fleet Management Physical Inventory Counting EPOD/EPOC Stock Management Shipment Tracking Job Scheduling Packing, Loading and Shipping Replenishment Transactions Dispatch Planning Consigned Inventory / VMI VAS/Kitting/De-kitting Material Allocation Outbound Material Processing Directed Picking Figure 1 Figure 1 offers a high-level overview of the organizational needs (which are beyond the scope functions that mobility can support in a typical of discussion here). warehouse. Core Functions Once the contours of where mobility can help in Inbound Materials Processing warehouse operations are defined, warehouse The processes involving the receipt of goods into managers can delve deeply to obtain a detailed the warehouse can greatly benefit from the use understanding of how ground-level functions of mobility. Figure 2 (on page 3) illustrates how can actually be mobile-enabled and explore the mobility can be integrated with inbound materials benefits that can and should be derived from processing along with the benefits of doing so. such initiatives. Inventory Management The functions outlined in Figure 1 can be executed using different types of handheld mobile devices, Inventory management is a core area within including scanners, mobile computers and vehi- warehouse management where mobility can cle-mounted devices, or a combination of these. bring high levels of efficiency. Figure 3 (on page The selection of these devices for each function 4) shows how mobility can be integrated with depends on parameters ranging from the ware- inventory management functions along with the house’s physical environment, the materials it associated benefits. deals with, Cap-Ex availability and other specific cognizant 20-20 insights 2
  • 3. Mobility’s Inbound Materials Processing Benefits Function How to Enable Mobility Benefit Real-time updates can be exchanged using mobile devices Reduction in waiting time for between incoming shipments and the warehouse to facilitate vehicles at the receiving dock. Inbound efficient inbound scheduling. Based on these updates, the Scheduling dock door assignments can be created and altered on a real-time basis. Inbound materials can be scanned, verified and received Flexibility at the floor level Materials in the warehouse using a mobile device. The mobile device along with real-time updates. Receiving can be used to update the receipt status in the enterprise system in real time or in batches. Based on preconfigured quality plans within the enterprise Reduction in overall time and system, inbound materials inspection can be carried hence cost of quality assurance out and the data can be entered for comparison against activities. Materials approved specifications using mobile devices. This can Inspection direct the warehouse worker to take the necessary action for inspection results based on pre-configured rules in the enterprise system. Mobile devices can provide real-time visibility to orders Reduction in time and effort requiring cross-docking and suggest suitable inbound needed to match inbounds and Cross-Docking shipments for fulfilment. Material can be allocated to these outbounds for cross-docking. Suggestions orders on the mobile device and shipped directly without Possibility for enabling cross- having to be routed through the warehouse’s inventory. docking in warehouses that are unable to use this best practice. Spot suggestions of locations for put away of materials can Saves time and effort for be displayed on mobile devices based on custom logic and material consolidation while rules depending on warehouse layout, location of existing improving concurrent informa- Directed Put items, item type and other parameters. Suggestion-based tion availability. Away put away using mobility will enable easy consolidation of material in the warehouse based on any chosen parameter. In addition, mobility can enable scanning as opposed to manual key-in and real-time update of inventory records. Figure 2 Outbound Material Processing engagement. Irrespective of the approach taken, In many businesses, a warehouse’s efficacy is deploying mobility in a warehouse requires special determined by how well it is able to process care across numerous aspects due to its process- outbound orders. Figure 4 (on page 5) highlights intensive nature, coupled with the fact that it is how mobility can be integrated with functions a core component of the manufacturing value- of outbound material processing along with the delivery mechanism. Thus, it is imperative that the associated benefits. deployment blends in smoothly with day-to-day activities and causes minimal disruption. Figure Management and Supervisory 6 (on page 6) lays out our recommendations for Functions a seamless deployment of mobility across the Besides the core warehousing functions, there warehouse functions. are various management and supervisory Objective Definition functions performed by warehouse managers In this stage, the general approach will involve and shop floor supervisors that mobility can ben- identifying the strategic or tactical objectives that eficially transform. Figure 5 (on page 6) reveals drive the introduction of mobility in warehouse(s). how mobility can help such functions along with For example, the objectives can be improving the benefits. inventory management, bringing down costs Mobility Deployment Considerations without impacting service, improving worker in a Warehouse safety and/or achieving regulatory compliance. Deploying mobility in a warehouse requires a dis- Balance Top Floor and Shop Floor Goals ciplined approach to achieve its full potential. The Management buy-in for the mobility program will deployment can either be a part of the organiza- ensure tight alignment of the technology with tion’s overall IT strategy or a warehouse-focused cognizant 20-20 insights 3
  • 4. Mobility’s Inventory Management Benefits Function How to Enable Mobility Benefit Purchase requisitions can be raised right at the point of Reduction of purchase lead Purchase source of demand in shop floors and warehouses using time. Requisition mobile devices. Basic inventory transactions such as issue, receipt, Improving concurrent informa- transfer of goods, etc. can be carried out using mobile tion availability and eliminating Inventory devices. The mobile application can provide information additional effort for maintaining Transactions about the current location of materials, destination of updated information. materials, handling instructions and all other related data so the user can carry out the specific transaction. Real-time information regarding availability of stock and Improving concurrent infor- On-Demand other stock-specific information can be made available on mation availability for faster Stock Informa- mobile devices from anywhere, anytime. Information can decision-making. tion be queried via different methods (e.g., item-based inquiry, location-based inquiry, etc.). Cycle count orders can be executed by scanning items Reduction in counting effort planned for count at any location using a mobile device. and enforcement of better Cycle Counting The mobile application can keep track of the count and operational discipline. pending items while it can also require users to verify item and lot information. Physical counting of all items in particular inventory Reduction in counting effort Physical locations can be handled using a mobile device. The appli- and concurrent update of Inventory cation can keep track of the counts and also allow entry information Counting of items which did not have system records and hence for counts that were not generated. Mobile applications can be used for stock management Reduction in stock management Stock including updating the stock quantities, stock condition, effort with concurrent informa- Management location, pack details, registering stock relocations, etc. tion availability. Real-time notification of job and flow scheduling can Better availability of concurrent be sent to shop floor workers on mobile devices. Also, information. Job Scheduling dynamic status updates on work orders and assembly completion can be propagated using mobile applications. Inventory levels can be managed using the enterprise Reduction in time and effort for system’s planning and replenishment features (e.g., carrying out replenishments, Replenishment min-max, Kanban, etc.) that includes generating preap- thus increasing material avail- Transactions proved move orders. These move orders can be effectively ability. tracked and transacted using a mobile device on the shop floor. Rule-based material allocations created by the enterprise Time savings by providing system for different kinds of move orders such as ground level flexibility in outbound orders, issues to shop floor, inventory transfers, handling material allocations. Materials etc. can be viewed and managed using mobile devices. In Allocation cases where these need modification, such requests can be initiated, reviewed and approved by appropriate users based on configured workflow using their mobile devices. Consigned/ Consigned or vendor-managed inventory can be received Effort reduction in consignment Vendor on a mobile device using a single receipt transaction to inventory management. create the order line and receive the goods in a single Management step by pre-configuring the rules for order and line Inventory creation. Receipt Figure 3 cognizant 20-20 insights 4
  • 5. Mobility’s Outbound Materials Benefits Function How to Enable Mobility Benefit Pick lists generated by the enterprise system and assigned to Time and hence cost specific users based on business rules can be viewed by warehouse savings in one of the workers on their mobile devices. These tasks are then executed by most significant ware- Directed the user, based on directions provided by the mobile application housing processes — Picking that optimizes the task at every point based on material avail- order picking. ability, route and other variables. The mobile application can also update the system concurrently with the current task status. Tasks related to containerization, labeling, loading and shipping Time and cost savings Packing, can be administered and executed using mobile devices. Specific through efficient instructions can be transmitted to workers carrying out these tasks execution of packing Loading and in the form of mobile notifications. Additional information such as and shipping process. Shipping cost items for shipping charges, outside service tracking numbers, etc. can be captured at this level using a mobile device. Dispatches can be prioritized and hence accelerated by providing Time savings and the dispatch planning system, real-time mobile updates on the accuracy of dispatches Dispatch readiness of shipments and other delivery requirements. Pre- by priority and delivery Planning dispatch tasks can be tracked through mobile devices and the requirements. information can be constantly fed to the dispatch planning system in real time to enable this. Tasks for value-added transactions such as packing material as Increased efficiency and Value-Added per delivery requirements, gift wrapping, etc. along with specific accuracy in executing Services/ instructions can be dispatched through mobile devices based on value-added services. Kitting, requirements recorded in the system. Tasks such as kitting and De-kitting de-kitting before dispatch can also be administered and executed through mobile devices. Real-time information can be effectively tracked on delivery, stops, Enhanced tracking diversions and breakdowns by shipment handlers using mobile efficiency and greater Shipment devices to provide updates and even request service. Tracking customer satisfaction. Tracking information at this level can help by providing customers with exact information on the status of shipments, which is important for B2C companies. Dynamic optimization can be achieved in fleet utilization by Cost reduction through receiving location and status updates of vehicles in real time efficient fleet utilization using mobile devices. Also, dispatches can be consolidated and and management. Fleet optimized based on concurrent information. Route optimization Management can be achieved based on real-time information being received from mobile-enabled vehicles to enable traffic updates, weather conditions and other geo-relevant information. Electronic Electronic proof of delivery/collection along with signature capture Time savings in Proof of can be implemented using mobile devices. The delivery person can obtaining proof of use a specialized mobile device to record the acknowledgement delivery and updating Delivery/ from customer and to concurrently update status. delivery status. Collection (EPOD/EPOC) Figure 4 the organization’s overall strategic objectives. Put Numbers to Objectives This approach will help ensure the organization It is a good practice to calibrate objectives with achieves synergistic benefits over the long term. numerical targets where quantitative measure- On the other hand, it is also imperative that ments are feasible. This will help justify the invest- these objectives address key and significant pain ments needed for the deployment as well as make points of the warehouse workforce, as well as the it easy to measure the results post-deployment. function. This will drive active participation and It may be difficult to assign exact numerical wholehearted adoption of mobility solutions by targets in most cases, so ballpark objectives can key stakeholders. be set. For example, if inventory reduction is an cognizant 20-20 insights 5
  • 6. Mobility’s Supervisory Benefits Function How to Enable Mobility Benefit Real-time approvals can be provided by supervisors and Time savings leading to administrators for all warehouse processes using mobile cost savings through faster Real-Time applications. When an activity requiring approval is execution of processes. Approvals recorded, notifications are received by the supervisor(s) (based on pre-configured workflows), who can review and approve/reject the request concurrently from his device. Business intelligence and analytical tools can be used to Faster and effective access generate ad hoc reports with interactive charts and layouts to intelligent information and Business Intel- on mobile devices that can be accessed from anywhere, analysis leading to efficient ligence and anytime. This can take advantage of information updates decision-making. Reporting provided through mobile devices in near-real time, thus giving scope to execute and track key warehousing aspects such as predictive replenishments, hours accounting, etc. Some basic system administration functions such as user Time savings through ease of administration, device administration and parameters configuration management. administration can be made accessible through mobile System Adminis- devices to administrators who work in distributed environ- tration ments (e.g., modifying user access to specific functions, changing device configurations, changing parameter values of system parameters, etc.). Ad hoc label printing requests can be made through mobile Time savings through ease of Ad Hoc Label devices from any point in the warehouse whenever needed making print requests from Printing by any user who has access to the specific function. anywhere. Figure 5 objective, then mobility deployment can target a flow and the other objectives already defined. 7% to 10% reduction in inventory. The underlying focus will be to integrate mobility into the host of activities needed to maximize Process Evaluation deployment benefits. This requires an intensive evaluation of the warehouse processes in light of the objectives Mobility for Business Goals, Not Vice Versa defined in the previous stage. Evaluation and It is important to keep in mind that the objectives analysis of key processes should result in reen- of deploying mobility, which were identified in gineering for improved execution efficiency in the first stage, were to help attain business goals terms of cost reduction, speed, error reduction, rather than deployment of a mobility strategy productivity improvement, agility of information and devices. For example, suppose the existing Key Considerations for Successful Warehouse Mobility Deployments Objective Process Solution Build Pilot Testing Deployment Support & Definition Evaluation Designing Scale-up Balance Top Floor Mobility for Design for a Choose Vendors Measure the Deploy Warehouse Set Up a & Shop Floor Goals. Business Goals. Phase-Wise for Solution. Business, Not Just by Warehouse. Centralized Put Numbers to Evaluate Warehouse Implementation. Follow Iterative the System. Train Optimally. and Remote. Objectives. Environment & Take the “App-Way.” Builds. Choose the Right Management Evaluate a Remote Usability. Warehouse for Infrastructure. Involve End Users. Setup Option. Keep the Techno- Pilot. Minimize Design Functional View. Complexities. Figure 6 cognizant 20-20 insights 6
  • 7. way of working involves inbound material put Design for a Phase-Wise Implementation away and inventory consolidation as two separate An effective approach for implementing mobility processes and one of the objectives is to optimize in a warehouse is to create a phased implemen- inventory handling costs. The reengineered tation plan based on criticality of functionalities, process should involve mobility-enabled directed possibility of disruptions of critical processes, put away which handles consolidation automati- availability of resources and cally rather than keeping put away and consoli- budget constraints. This step dation as two separate processes and mobile- kicks off the phased plan An effective approach enabling each process individually. because at this point, a more for implementing complete view of the process mobility in a warehouse Evaluate Warehouse Environment and Usability level requirements, techno- It will be comparatively easier to assess the functional needs, environ- is to create a phased environmental conditions in this stage while mental needs and usability implementation plan evaluating the processes. Detailed notes can be requirements is available. based on criticality made here regarding circumstances such as dust On the other hand, the con- exposure, extreme temperatures, possibility of siderations of a phased of functionalities, contact with liquids and chemicals, possibility of plan can be more easily possibility of drops and wash-downs and other such conditions absorbed in the technical disruptions of critical experienced across various processes. Notes design, functional design, should also be taken for possible usability details procurement needs, setup processes, availability such as the need for scanners, keyboards, touch- and installation needs, etc. of resources and enabled interfaces, cameras or other such needs — which will be challenging budget constraints. for the activities being chalked out. These will once the design is finalized. form valuable inputs while deciding the hardware features and form-factor requirements of the Take the ‘App-Way’ solution. An app-based approach rules the world of mobility today and is expected to prevail for the foresee- Keep the Techno-Functional View able future due to key benefits such as the ease The other key imperative is to determine techno- of deployment and maintenance, scalability and functional requirements such as flow of informa- flexibility it provides. (A detailed discussion on tion, workflow needs, communication enhance- this topic is beyond the scope of this white paper.) ment needs, etc. while evaluating and redesigning Designing the warehouse mobility solution on processes. This ensures more integrated brain- an app-based architecture will help in leveraging storming and eliminates the need to evaluate those benefits. Each function can be deployed as these activities at a later stage. a separate app, installable from an organization wide “app-store.” Users can have access to apps Solution Designing based on their roles and the functions they execute The next stage involves detailing the complete on the ground. (For more insights on this subject, solution by integrating both hardware and see our white paper “Enterprise Mobile Apps: How software design requirements. The hardware Role-Based Apps Will Drive Productivity and Trans- design will contain details of the kinds of mobile formation in Manufacturing Companies.”) Some devices required along with their expected obvious benefits of this would be efficient access features and functionalities, device form factors, control, better supportability and maintainability, communication protocols, network requirements easier collection of feedback and issue tracking, and other hardware and infrastructure needs. This efficient scalability, etc. Ideally, the apps should be should also take into account the environmen- designed to handle broader functions end to end; tal and usability needs detailed in the previous however, if functional interdependencies cannot stage. The software design will detail the mobili- be completely eliminated, they can be addressed ty-driven functional model required in the system by creating app dependencies requiring installa- to enable reengineered process flows from the tion of all interdependent apps. previous stage. This should also detail the data flow, computational needs and algorithms, state Involve End Users diagrams, user interfaces and system interfaces At this stage, it is possible to get carried away by of the solution based on techno-functional needs the expertise of architects and solution designers identified in the previous stage. while ignoring the actual end users who will use cognizant 20-20 insights 7
  • 8. the system at the ground level. It is imperative to Follow Iterative Builds verify the design aspects that directly affect the A significant consideration at this stage will be to end users within a chosen sample of users. For go for an iterative build to deliver on the phased example, a picker’s input is important in deciding plan diagrammed in the previous stage. This will whether the mobile devices used for picking be more streamlined if the phased plan had been should have touch-based interfaces or physical created with the necessary considerations incor- keypads. Again, these inputs need to be properly porated in the design. Also, an app-based design moderated in light of technical feasibility and will be helpful here to build/enhance a set of apps budget constraints. In the end, it is good to know in each phase. This will ensure better cost and what can and cannot be provided instead of not time controls during the build stage, with clear providing something that could have been done milestones and deliverables. with ease. Pilot Testing Minimize Design Complexities At this stage, a small-scale pilot is deployed to The tendency to increase system complexity, in test the mobility solution with end users. This is the design stage, for rare exceptional situations where the solution deployment steps, installation needs to be curbed to prevent and go-live sequences and considerations are A picker’s input time and cost overruns and ensure a more manageable tested before carrying out actual user acceptance testing. This is also the best time to conduct all is important in and supportable solution. For necessary measurements for studying the effect deciding whether example, ingress protection (IP) of deploying mobility in a warehouse once user the mobile devices sealing levels ofthe current and be in tune with devices should testing has started. used for picking predictable future environ- Measure the Business, Not Just the System should have touch- ment of operations rather than It is very important to perform measurements based interfaces or making it too future-proof in the on unpredictable changes based focused on the business objectives identified in the first stage of deployment rather than physical keypads. work environment. Similarly, it is merely measuring the performance of the new not advisable to build a complex system. For example, if inventory reduction was feature into the software that will be needed only a strategic objective of this deployment, there in very rare and unpredictable situations without should be some measure to monitor the inventory exploring the existence of potential workarounds. levels before and after deployment. It is best to not get carried away by measures of how fast the Build system is responding and how many defects are This stage is where the solution is developed by present in the software although they too are sig- procuring the hardware, developing the software nificant measurements to be carried out in this and installing the infrastructure. As a prerequi- phase. This is where a real advantage of phased site, the organization must evaluate each vendor building and implementation can be felt. If the and make hardware, software and infrastructure measurement results don’t live up to the targets selections based on the organization’s procure- when the first phase is pilot tested, subsequent ment processes and the resource base. phases can include the necessary fine-tuning to correct course. Choose Vendors for Solution, Not Just Products Choose the Right Warehouse for Pilot In the vendor selection phase, it is important to It is crucial for pilot testing to choose a represen- choose vendors that can provide solutions for tative warehouse that covers the orhanization’s warehouse mobility deployment — and preferably core functions and processes. On the other hand, have experience doing so. Like all enterprise it is also imperative to not choose a warehouse products, taking a product-specific approach may for the pilot test that is critical to the business — not prove to be effective in attaining end-busi- one where disruptions would affect an important ness objectives. Thus, a vendor that understands market significantly. Balancing these criteria is key. the specifics of the organization’s business, and hence its warehousing needs, is typically a more Deployment reliable partner than the one with the lowest-cost At this stage, the solution is deployed in the or most feature-rich product. planned warehouses and used to carry out day-to-day business. In the case of a phased cognizant 20-20 insights 8
  • 9. implementation, this stage will go live with just tion, as discussed in the solution designing stage, the first set of functionalities initially, with more the support and scale-up of the deployed phases functionality added at subsequent stages based continue in parallel to the implementation of the on the plan created in the solution designing later phases. stage. User training is a key activity to be carried out before going live. Set Up a Centralized and Remote Management Infrastructure Deploy Warehouse by Warehouse The costs of support and scale-up can be pro- It is a good practice to deploy warehouse by hibitive if it is managed and administered warehouse. It ensures that the specialists who locally. It is important to centralize the support are needed for the go-live can focus on one of mobile devices and the related infrastruc- warehouse at a time, thus reducing the total ture, including the wireless network. Scaling headcount needed. This also ensures that lessons up activities executed occa- learned during previous deployments can be sionally also needs to be In a phased carried over. seamlessly deployed to ensure implementation, the least possible disruption Train Optimally to warehouse operations. as discussed in the To train all users equally in something as resource Thus, consider a support and solution designing intensive as a warehouse can be costly and time- maintenance infrastructure stage, the support consuming. Instead, it may be optimal to subject that is centralized and can be all warehouse workers to a basic training, then remotely managed. Here, an and scale-up of provide specialized training that is functionally app-based implementation, as the deployed based and focused on key responsibilities, and mentioned earlier, can prove phases continue then handpick a few across all the functions for very useful since it makes in-depth training. Those who receive in-depth maintenance and pushing of in parallel to the training can then help to train the others when upgrades far easier and less implementation of needs arise. intrusive compared to a more the later phases. aggregated system. Evaluate a Remote Setup Option The initial setup and installation of mobile devices Looking Forward is a time-consuming and costly affair. In most As IT advances, mobile devices are moving toward cases, however, it is possible to do this remotely greater levels of integration with human activity. from a central location using a staging solution. Enterprises are using this to their advantage by The required setup can be pushed to devices on deploying smart mobile devices and apps that the ground with little or no end-user involvement. increase process efficiency and thus enhance Hence, it is advisable to evaluate a remote setup productivity by enabling new ways of working. option wherever feasible. Enterprise mobility is the most significant step Support and Scale-Up in this direction. Successful organizations are After successful deployment, a continuous those that use their power to build, operate and process of support and scale-up of the solution extend new-age warehouses today. Due to the is initiated. The deployed solution needs to be immense benefits, the warehouses of tomorrow administered, managed and supported actively. will evolve with tightly interwoven mobility. It is It is also necessary to scale up the solution from just a question of which organizations can move time to time by introducing enhancements in the fast and are able to differentiate themselves at form of new functionality, advanced technology the onset, leaving laggards to play catch-up with and platform upgrades. In a phased implementa- market leaders. Footnotes 1 IDC Manufacturing Insights: “Predictions 2012: Manufacturing.” 2 Gartner Predicts 2012: “Four Forces Combine to Transform the IT Landscape,” www.gartner.com/id=1871420. cognizant 20-20 insights 9
  • 10. About the Authors Shreejit Mitra is a Consultant with Cognizant Business Consulting and is a member of its Manufac- turing and Logistics Practice. His areas of expertise are in supply chain functions such as warehouse management and field service management. He is currently advising clients on ways to leverage disruptive technologies such as mobility in their supply chain functions. Shreejit has an M.B.A. from XIM, Bhubaneswar, and a B.Tech. in computer science and engineering. He can be reached at Shreejit.Mitra@ cognizant.com. Ganesh Iyer is a Consulting Manager with Cognizant Business Consulting and is a core team member of the Manufacturing and Logistics Practice. His primary areas of expertise include supply chain management and business process harmonization. He has extensive experience advising companies on ERP selection and implementation issues across manufacturing industries. Ganesh has an M.B.A. from NITIE, Mumbai, and a B.E. in mechanical engineering. He can be reached at Ganesh.Iyer@cognizant.com. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process out- sourcing services, dedicated to helping the world’s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 50 delivery centers worldwide and approximately 156,700 employees as of December 31, 2012, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters European Headquarters India Operations Headquarters 500 Frank W. Burr Blvd. 1 Kingdom Street #5/535, Old Mahabalipuram Road Teaneck, NJ 07666 USA Paddington Central Okkiyam Pettai, Thoraipakkam Phone: +1 201 801 0233 London W2 6BD Chennai, 600 096 India Fax: +1 201 801 0243 Phone: +44 (0) 20 7297 7600 Phone: +91 (0) 44 4209 6000 Toll Free: +1 888 937 3277 Fax: +44 (0) 20 7121 0102 Fax: +91 (0) 44 4209 6060 Email: inquiry@cognizant.com Email: infouk@cognizant.com Email: inquiryindia@cognizant.com © ­­ Copyright 2013, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners.