1.  
Warehouse & DC Management
Logistics Management May 2011

2.  Warehouse Management Solution (WMS)- controls the
movement and storage of items within a warehouse.
Processes associated transactions including
shipping, receiving, putaway and picking. WMS often
utilize Auto ID Data Capture (AIDC) technology, e.g.
scanners or mobile computers. WMS can be a stand
alone system (i.e. Best of Breed) or part of an Enterprise
Resource Plan (ERP).

3.  Enterprise Resource Plan (ERP)- Comprehensive
software package that integrates management
information across an entire organization including
logistics, finance, accounting, engineering, sourcing, pro
curement, human resources, payroll, benefits, etc.
 Examples: Oracle’s Peoplesoft, SAP’s mySAP

4.  Guess has grown from a $6 million family business in
1982 to a $2 billion international business in 2010.
 Ships 30 million units annually to department stores, 400
specialty stores and directly to customers

5.  Guess had outgrown its main distribution center in Los
Angeles by the late 1990s
 Lengthy transit times
 Current logistics system was too small for the growing
demand and didn’t interface well with other software that
was used

6.  Moved main DC to larger facility in Louisville, KY
 Implemented Manhattan Associates’ WMS
 Implemented ERP (Enterprise Resource Plan) to
interface with new WMS
 Separated wholesale and retail inventory
 Invested in new materials handling equipment

7.  Software was developed for retail clothing industry.
 Formerly called PickTicket Management System (PkMS). Now referred to as
WM.
 Paperless flow of inventory through the distribution center
 Automates the control, movement and storage of materials in a warehouse.
Units are automatically received, inventory is automatically updated
 Improves accuracy of orders and reduces the amount of safety stock
 Automates picking, packing and shipping
 Consolidates orders to reduce transportation and shipping costs
 Reduce expenses on labor and storage by managing tasks

8.  Supplier  Advanced Shipping Notices (ASN)
 Advanced Shipping Notices (ASN) are sent to ERPs
Wholesale (Jesta I.S.) and Retail (RDA)
 ASNs are sent to WMS before the package arrives at the
warehouse.
 Warehouse Control System (subsystem of the WMS) directs
packages to quality check, weighing, put-away area for
storage or picking for shipping. Packages are scanned and
WMS is updated with current location and inventory level.

9.  Allocates available inventory for orders and chooses the
location within the DC for distribution into sorters or put-
to-light system.
 Real time interfaces between WMS & Warehouse
Control System (WCS) directs the scanned outbound
package to quality check, value-added services or to the
print-and-apply area where shipping labels are
automatically applied.

10.  Bombay Unit Sorter- Consists of loop of trays connected
to a chain. Product is placed on the tray and is dropped
directly into a tote/carton. Used for medium sized
packages.
 Put-to-Light system- Put system that uses light modules
to direct operators to the correct location to sort items
 Tilt tray sorter- high speed sortation system that is used
for small packages, e.g. jewelry

11.  Flexibility- new WMS capable of interfacing with new
sorters and ERP systems.
 Increased Accuracy- every package is tracked in real
time
 Increased throughput- increased shipments by 30 to 40
percent
 Decreased weekly orders which reduces inventory costs
 Enabled Guess to keep up with growing demand
 Physical inventory down time decreased from 3 days to
12 hours