The document outlines an operational value assessment proposal for a retailer, emphasizing the need to evaluate current processes through interviews, benchmarks, and system reviews. It highlights challenges faced by the retailer, including reliance on non-value added manpower and disparate systems, while proposing strategies for improvement and growth management. The assessment aims to provide a cost-benefit analysis for warehouse management system enhancements, layout execution, and labor performance improvements.

1. © 2013 enVista, LLC
Operational Value
Assessment Proposal
for
[Retailer]

2. Understand
current
processes
• Interview
executives,
managers, IT
super user,
and
operations
• Benchmark
current
operations
performance
• Review
operations for
standard
execution as
well as
exceptions.
Evaluate
current
operations
• Review
product
handling steps
and order
fulfillment
• Facility
operation
layout review
• Compare
operations
performance
with industry
metrics.
Document
system
requirement
s
• Review
current WMS
system usage
compared to
system
capability.
• Review data
integrity and
real-time
updates in
support of
decision-
making.
• Review
integration
gaps.
Review
organization
structure
• Evaluate org
structure
alignment
within
operations,
inventory
control,
procurement,
and order
fulfillment.
• Review
current and
future labor
performance
metrics.
Develop
Cost Benefit
Analysis
• WMS system
enhancement
or module
setup/configur
ation
• Warehouse
layout and
slotting
plan/execution
• SOP
standards
• Labor
performance
program setup
Operational Assessment Objectives

3. 3
Manipulating product in location,
Managing multiple U of Ms/location
DSI data entry/scanning,
Response time delays,
Selecting pick sequence/
location, Managing multiple
scripts/ activity
Verifying pick sequence on
pick list, reviewing
substitutions and adjustments,
managing dock staging areas.
Benchmarks – Picking Activity

4. 4
$XX
$XX
$XX
$XX
$XX
Current Facility WMS - RF WMS - Voice
Labor Savings Picking Labor $
WMS-RF: ~ XX FTEs WMS-Voice: ~ XX FTEs
NOTE: $XX FTE Cost, Including Benefits
Savings - Picking

5. As-Is Process Documentation

6. Future Process Flow

7. 1. Remove product from first two levels of shaded existing
reserve carton rack.
2. Move product to other company facility.
3. Repopulate with product from existing floor and
mezzanine level picking areas.
Phase 1 – Inventory Conversion

8. Value
Assessment
Lean
Distribution
Design
XX Weeks
Slotting
Execution/ MHE
Selection
XX Weeks
MHE
Implementation
XX Months
SOP Development
XX Weeks
Supervisor/End
-User Training
X Weeks
System Vendor
Evaluation
X Weeks
Ph 1. WMS/Voice
Implementation
7 months
Execute Pallet/
Layer U of M
Handling
XX Weeks
Recommendations

9. Alternative #1 - ROI

10. Benchmark - Picking
XX
XX
XX
XX
Current Benchmark WMS-RF WMS-Voice
Cases/Hour/Worker
FQ Current Breakdown
• Retailer 1: XX
• Retailer 2: XX
• Retailer 3: XX
• Retailer 4: XX
Sample Included XX
Picking Operators

11. © 2013 enVista, LLC
Investment
Summary…

12. Engagement
Lead ParticipateTasks
Operational Value Assessment
1. On-Site Interview of Key Stakeholders
2. Observe Current Operations and Future Plans
3. Benchmark Current Operations Against Best in Class
Performance
4. Validate Current IT System Usage, as well as Future
TecSys System Capabilities
5. Identify Risks Factors
6. Quantify Cost Savings and Capital Expenditure Options
7. Recommend Timeline and Resource Requirements to
Execute Changes
8. Discuss Labor Performance and Metrics
 enVista
 enVista
 enVista
 enVista
 enVista
 enVista
 enVIsta
 enVista
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
 [Retailer]
Investment Summary

13. Operational Assessment Case Study
Challenge Response Result
• [Retailer] is Growing
Annually at a 20% Rate Yet
Operates Their Business on
Tribal Knowledge, Non-
Value Added Manpower,
and Disparate Systems.
• [Retailer] is also challenged
by their international
business model
(Operations, Buying,
Transportation, IT – US
Based; Store Operations –
Central America)
• [Retailer] is looking for a
strategy and tactical steps
to execute upon to manage
growth.
• enVista positioned our Retail
Strategy experience with like
customers
• Execute Three Actual
Methodology (People,
Places, Processes) to
Validate Business Need.
• Support Approach with Client
References and Detailed
Sample Deliverables.
• Develop an Approach,
Timeline and Cost that is
Thorough and Cost Effective.
• enVista implemented a six
week Logistics Execution
Assessment that involved
interviews and observations
across [Retailer]’s entire
network.
• enVista’s strategic plan for
[Retailer] included the
following areas:
• Conduct C. America
LNA to determine
how many in-country
buffered DCs should
exist.
• Conduct
Transportation and
WMS technology
evaluations.