Tier 1 WMS in the Cloud

WMS in The Cloud
Ready for Prime Time

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The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved.
Agenda
What is The Cloud?
Cloud Benefits
Tier 1 WMS Vendors in the Cloud
The Cloud Decision
How to get started

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Software is installed and serviced offsite with updates and security patches as required
Similar to SaaS, but instead of providing software it provides a development environment for the creation of software.
Providing the cloud infrastructure on demand: servers, operating system, storage. Can be public cloud, private cloud or hybrid
What is The Cloud? ‘Cloud’ is the concept of having the hardware, software and varying degrees of managed services hosted and managed.
Business process as a service delivered via the cloud services model.
IaaS
BPaaS
PaaS
SaaS
Public Cloud the application and infrastructure is shared and remotely hosted. Private Cloud the application and infrastructure is NOT shared and is remotely or locally hosted. Hybrid Cloud Some applications are public, some are private
Hosting
SLAs
Multi-tenant
Web-based
Public
Subscription
Configuration
Outsource
Services
Software
Content

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4 Main Features of Cloud Services
MANAGED SERVICES
‘Managed Services are symbiotic with reliability’
A ‘WMS tailored’ approach provides a strong value proposition to the WMS in the Cloud customers who can decide what resources (internal or outsourced) will provide the services based on their preference, level of application expertise and price point.
SECURITY
Each organization has its own policy on security and Cloud offers some strong and often superior protection
Cloud providers have to meet the security standards for many companies. This may allow your company to benefit from a more rigorous security plan without internally managing.
SCALABILITY
All application instances can scale easily both vertically or horizontally
Application Instances can be brought up or down when required for cost savings.
RELIABILITY
Encompasses performance and speed (response time).
WMS in the cloud has to deliver to business the service level they’ve come to rely on or maybe even do better.

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Agenda
What is The Cloud?
Cloud Benefits
The Cloud Decision
How to get started

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The biggest benefits of Cloud Computing
Trade Capital Expense for Variable Expense
Lower Variable Expense than Companies Can Do Themselves
Increase Speed
and Agility
Increase Innovation when Experimentation is Rapid and Low Risk
Stop Spending Money on Undifferentiated Heavy Lifting
Go Global in Minutes

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Agenda
What is The Cloud?
Cloud Benefits
The Cloud Decision
How to get started

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Early Adopters of Cloud WMS
JDA WMS – has established a set of customers deploying JDA WMS in the cloud with a variety of deployment scenarios.
United Facilities (UFI) is a Third Party Logistics (3PL) company with 5 distribution centers. UFI wanted to replace their in house, unsupported WMS/WFM solution to provide world-class services to a new key partner, General Mills. The overhead to manage a centralized WMS was their single largest cost and distracted from their core vision. Solution increased inventory accuracy and visibility for their customers and drove 40% margin growth
Manhattan Associates – has made a move to cloud with both WMS and TMS and has added ‘tapping into the Cloud’ as way for on premise applications to leverage the collaborative aspects of the Cloud community
With RedMart's technology strategy already leveraging Amazon Web Services' (AWS) cloud-based infrastructure, Manhattan SCALE was deployed in the AWS cloud. RedMart worked closely with the Manhattan team to optimize performance and ensure there were no latency issues for on premise devices including printers and scanners. RedMart reported zero issues related to AWS or Manhattan's ability to deploy in this manner’.
SAP EWM – provides a program to get your deployment quickly started in the Cloud and then move all or part to on premise when you get your servers ready.
Papyrus is one of the leading merchants in Europe for paper products, industrial packaging and facility supplies. They selected an EWM rapid-deployment partner solution instead of the classical project implementation approach. Deploying the rapid-deployment solution into their own environment reduced blueprinting, customizing, and testing effort overall by 60%, minimizing delta work to a great extent.

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Agenda
What is The Cloud?
Cloud Benefits
The Cloud Decision
How to get started

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The Cloud Decision Matrix
The decision needs to be per business process, solution, or per software application
What SLA do We need?
–What uptime do we expect (availability), backup policy and data retention needs, when do we expect patches, when is the solution upgraded and can I control those decisions.
Regulations / Compliance
–Government regulations that may apply such as FDA validation, special data protection rules such as PCI Compliance or security rules beyond the standard.
Predictability of the Solution
–Focuses on how the solution functions, and how predictable it is. Do we need more computing power for month-end, will we have unpredictable bursting such as a promotional website or even a temporary environment that may have unpredictable growth.
When to move to the cloud?
–Although a move to the Cloud is a step toward getting out of the IT business, adjustments to your infrastructure still need to be planned as part of the process. Areas here are around network security, ability to connect in the Cloud, and reviewing the integration points between systems.
Financial Decisions
–Current leases, value of owned technology assets, datacenter layout today and labor costs to reduce the footprint, and possible changes around software licensing due to the migration.
People
–Impact on your employees. Adapt from hands-on management to a governance model.
–Changes in roles, processes and procedures

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Is Cloud Computing a good option for your WMS?
Operations Profile
Full pallets in/out
Moderate volume
No automation
Predictable volumes
Standard pick/pack/ship
Moderate volume
Minimal automation
Multi-channel
High transaction volume
High seasonal variability
Automation
Value added services
Industry Profile
FMCPG
White Goods
Big-box Retail
Service Parts
Fashion Retail
Pharmaceuticals
Good Candidate
Less Favorable Candidate
A hybrid option may also be considered for companies with diverse distribution footprints such as regional/national DCs plus local service centers.

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Consider This – Split servers between Cloud and On Premise
This is a fast and cost effective option to get a project started. The Training and Development environments are made available early in the project. This helps effectively demo the product features and make the participants in Future State and Design sessions more informed on how the product functions.
The infrastructure team will now have more time to spec, buy and build out the Test, QA and Production environments as those are needed.
Training
Development
Test
On Premise
QA
You can also split the apps in the same manner. Labor Management and Slotting can be deployed in the Cloud while the core WMS and reporting elements are On Premise.
Production

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Cloud hosting of servers for WMS implementations is a viable option for companies to consider
Tier 1 WMS vendors are continuing to build out their Cloud offerings
Amazon Web Services offers any WMS vendor the opportunity to host in a Cloud environment
Companies can transition their current environment over to the Cloud Any business performing a new implementation of WMS or an upgrade should consider Cloud hosting.
Conclusion

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Contacts
Rishi Raina
rishi.raina@capgemini.com
Joe Vernon
joe.vernon@capgemini.com
Bob Hood
robert.hood@capgemini.com
http://www.capgemini.com/experts/supply-chain/joe-vernon

The information contained in this presentation is proprietary.
© 2012 Capgemini. All rights reserved.
www.capgemini.com
About Capgemini
With almost 140,000 people in over 40 countries,
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reported 2013 global revenues of EUR 10.1 billion (more
than $13 billion USD).
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and
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Tier 1 WMS in the Cloud

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