This document discusses trends in warehouse automation. It covers innovations like wearable devices, machine-to-machine communication, and intelligent agents. Examples of automation innovations are highlighted, like hands-free order picking using augmented reality and automated forklift and pallet tracking. The document also reviews SAP's warehouse management system roadmap and how technologies like the Internet of Things can optimize distribution center operations and analytics.

1. Trends in Warehouse Automation
Capgemini and SAP

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Today’s Agenda
Innovations
1
Best-in-Class Examples
2
Spotlight on Sobeys
3
SAP EWM Roadmap
4
Trends in Technology
5
Q&A
6

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At the Forefront: Innovations in Distribution
Distribution Centers can now provide:
Competitive Advantage
Improved Customer Service
Enhanced Revenue
A refocused strategy toward more automation enabled by:
Lowered cost of innovation
Wearable devices
Flexible WMS Models (Cloud, Saas)
The Internet of Things
Machine to Machine
Sentient Technologies
Digital Augmentation: Wearables
Auto Guided Vehicles
Mobility

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Innovation in Distribution Center Automation
DC Automation
Order Selection
SAP & Vuzix – Hands free, visual and voice combined picking
MHE & Automation
Sobeys – A big move into Automation. Cranes, Palletizer, De-Palletizer…..
Shuttling & Pallet Movement
Pallet transport AGV – Move pallets through the DC with unmanned vehicles
Bobcat – Automated Pallet inventory and forklift tracking
Next-Generation Productivity Enhancements
SAP MFS framework – Directly connect WMS to the PLC
The MFS dashboard - Analytics – is there something useful the automation data can tell us.
DC Automation
AGV
Wearables
Machine to Machine
Intelligent Agents

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Complete warehouse small-item picking scenario (inbound and outbound processing)
QR-Code and barcode scanning using a head- mounted display
Voice recognition
Innovation in Augmented Reality, Powered by SAP EWM
DC Optimization
Handheld device makes the picking of item cumbersome
Intensive interaction with handheld device
Alternative (Pick-by-Light or Pick-by-Voice) are either too expensive or limited in functionality
Challenges
Features & Capabilities
Hands-free experience allows employee to carry resources freely
Minimizes interaction between user and device
Enables faster picking scenario due to constant display of information and scanning capabilities of the head-mounted display
Value Impact

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Innovation in Pallet and Forklift Tracking
Bobcat uses Swisslog “SmartLIFT” technology to combine WMS data with sensor technology, resulting in an "indoor GPS” that provides information on current lift truck speed, location, and direction of pallets and their associated product. This can deliver accurate location information on every pallet handled and improves driver productivity and inventory accuracy.
DC Optimization
Value Proposition
1)Eliminates scanning, reduces labor and number of forklifts
2)Improves inventory accuracy to reduce cycle counts, lost time searching for inventory and safety stock
3)Improves movement and efficiency of forklifts

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Innovation in Automated Standard Fork Lifts
Guided by laser navigation, they move independently through the warehouse without fixed floor installations, thereby permitting multi-use of the transportation routes.
The automated forklift trucks transport all types of goods through the warehouse on load carriers (pallet or roll container) on an optimized transport path. The loading and unloading of goods is possible to a height of 10 meters, and can be done in the block system as well as in racks.
DC Optimization
Value Proposition
1)Extends vehicle life
2)Lowers operating costs and labor
3)Reduces maintenance
4)Safer

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Sobeys Case Study
1)Partnered with MHE provider to operate the equipment
2)Engaged employees from the beginning
3)Built the solution to allow for 50% growth in capacity
4)Implemented in two facilities
Metrics
Receive 720 cases/hr
Pick 500 cases/hr
Reduce cost by 30 cents/case
Reduce labor 30-40%
DC Optimization
https://www.youtube.com/watch?v=dOf9SAJmrCU

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Warehouse Automation with SAP ‒ Architectural Evolution
SAP ERP
PLC
3rd Pty. MFS
SAP LES
SAP ERP
SAP LES
PLC
SAP TRM
SAP ERP
PLC
3rd Pty.
MFS
3rd Pty.
WM
Inventory
Warehouse Mgmt.
Material Flow
Control of
Sensors & Drives
3rd Pty
MFS
SAP ERP
SAP EWM SAP MFS
PLC
SAP PCo
RFC-Adapter
Since 2008
3rd Pty.
MFS
SAP EWM
SAP ERP
PLC
Since 2005

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MFS – Types of Equipment
Conveyers
Pallets / cases / packages
Transfer cars
Sorter
Label applicators
Pick-Pack-Pass picking principle
Storage Retrieval Machines
ASRS pallets / cases
Goods-to-man picking principle
Subsystems
Monorail system
Automated guided vehicle systems (AGV)

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Internal
Innovations for Warehousing Management
Multi Deep Warehousing
Solution Round-offs
Dock Appointment Scheduling web collaboration for Carriers
Extended Labor Demand Planning
TCO / TCI reduction
Zero Down time
Quality Management
Support end to end process for recurring inspection
Tight integration with ERP
Inspection before Goods receipt
ECC
EWM
Support for multi-depth storage types
Easily monitor and consume MFS data
Reduce implementation costs and streamline process

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Internal
Innovations for Warehousing Management
Staging & Consumption
Production/Process Order in EWM
EWM is the leading system
Work Center / RF / MES
Posts consumption in EWM
Goods Receipt from Production
EWM is the leading system
RF / MES
Performance (hole-in-the-wall pallet receiving
Enhanced Production Integration

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Trends in Automation The 360 degree view of automation and its impact on operations.
Discussion Points
Impact of Technology
Massachusetts Institute of Technology researchers Andrew McAfee and Erik Brynjolfsson –
AI, Robotics, and the Future of Jobs.” Workers are losing the race between education and technology. This may be exacerbating a longer-term trend in which capital has gained the upper hand on labor since the 1970s’.
Labor vs Capital
And Talent
Sites will be more capital intensive. The P&L will move more costs to balance sheet
Equipment can be an encumbrance to nimble operational configuration and flexibility in your supply chain network
Skilled technicians are needed to keep equipment running
Impact
(48%) envision a future in which robots and digital agents have displaced significant numbers of both blue- and white- collar
(52%) expect that technology will not displace more jobs. Many jobs will be taken over by robots or digital agents by 2025. But they have faith that human ingenuity will create new jobs,
http://www.pewinternet.org/2014/08/06/future-of-jobs/

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Trends in Technology How can we leverage?
Discussion Points
Machine to Machine
M2M network uses a sensor or device to monitor activity or a status change: inventory levels, temperature changes or delivery zip code arrival.
The data is sent to another device or application, which can analyze the event and take further action.
Vendor auto-replen for supplies
Trailer Moves
Delivery Confirmation
Stock Outs
Temperature variance
Intelligent Agents
An intelligent agent is a software that allows people to delegate work to the agent software to perform repetitive tasks, remember things you forgot, summarize complex data, learn from you and even make recommendations to you.
Waveless Picking
Trigger Cycle Counts based on inventory adjustments, stock outs and miss-picks
Make staffing level and overtime recommendations based on current rate of work
Trailer Load planning
Predictive Analytics and Machine Learning
Learn from your data and inform decision makers before things happen. Monitor productivity, run rates, quality and other key metrics and dynamically modify the logic that controls those processes.
Adjust sorter speed and other automated equipment run rates
Build order waves and load plans dynamically
Next Generation
Smart technology and analytics are the next-gen for continuous improvement in operations

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Questions?

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Contacts
Sundip Naik
sundip.naik@capgemini.com
John McDonnell
john.mcdonnell@sap.com
Joe Vernon
joe.vernon@capgemini.com
Richard Kirker
richard.kirker@sap.com
www.sap.com/ewm

17. The information contained in this presentation is proprietary.
© 2014 Capgemini. All rights reserved.
www.capgemini.com
About Capgemini
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