Identifying Warehouse Management Value in the Connected Enterprise

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Information about Identifying Warehouse Management Value in the Connected Enterprise
Technology

Published on June 27, 2014

Author: Inspirage

Source: slideshare.net

Description

Oracle, Inspirage and Zebra Technologies co-present a case study and review of Zebra Technologies’ use of Oracle Warehouse Management as part of their blobal Oracle Enterprise solution - and how to identify improvement opportunities in your organization.

Oracle WMS Highlights Mark Lewis Director – Value Chain Execution June 2014

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.2 #ovcs The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.3 #ovcs Orchestrate Processes Execute Operations Optimize Performance Global Trade Management Distributed Order Orchestration Order Management Warehouse Management Transportation Management Supply Chain & Order Mgmt Intelligence Transportation Intelligence Fleet Management Oracle Value Chain Execution Execute Flawlessly

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.4 #ovcs Solution §  Optimizes and executes the flow of material and resources across all facilities and orders §  Capabilities –  Inbound Logistics –  Outbound Logistics –  Replenishment –  Value Added Services –  Task Management & Interleaving –  Labor Management Global Trade Management Distributed Order Orchestration Order Management Warehouse Management Transportation Management Supply Chain & Order Mgmt Intelligence Transportation Intelligence Oracle Warehouse Management (WMS) In-Memory Logistics Command Center

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.5 #ovcs Innovation: New Capabilities Ongoing Investments WMS 12.0 WMS 12.1 WMS 12.1.3 WMS 12.2 ü Labor Management ü Planned Cross Docking ü Flexible Label Field Definition ü Dual Unit of Measure ü Wave Planning ü Forward Pick Replenishment ü High Volume Case Pick ü LPN Status ü OTM-> WMS Dock Appt / Load Seq ü WMS Extensions for Endeca ü Distributed WMS ü Activity Based Billing ü Multi-client Support ü Opportunistic Cycle Count ü Mobile Personalization Extensions ü Contingent Workers ü Advanced Catch Weight ü Optional Lot Allocation

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.6 #ovcs Purchasing Order Mgmt Inventory MDM Host ERP system (Oracle or non-Oracle) Internal DC 3rd Party DC Factory Cross-Dock Stock Room Integration Framework Distributed WMS – integrated but decoupled Modern Warehousing and Distributed WMS Single product can be deployed standalone or as integrated solution

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.7 #ovcs •  Real-Time Operations Dashboards •  Fulfillment Planning & Tracking •  Space Utilization •  Labor Performance •  Benefits •  Improve on-time shipment rate •  Reduce warehousing cost •  Improve labor utilization Solution Overview Oracle WMS Extensions for Oracle Endeca

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.8 •  Apple & Android-based apps •  Developed with Oracle Application Development Framework (ADF) •  Standards-based UI technology which enables extensibility •  Application Examples: •  Mobile On-Hand Material Tracking •  Outbound Material Tracking •  Yard Supervisor Smart-phone Apps Mobile Phone Applications – New Options

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.9 Oracle Yard Management – New Product Part of a comprehensive value chain execution solution Improve visibility Yard equipment and contents Reduce costs Minimize detention & demurrage Increase productivity Find, move, and load/unload trailers more efficiently Benefits: WMS TMS YMS Real-Time Information

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.10 Oracle Value Chain Summit XXXXX http://eventreg.oracle.com/profile/web/index.cfm?PKWebId=0x95381a94e&source=EV-IE1

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.11 #ovcs

Copyright © 2014, Oracle and/or its affiliates. All rights reserved.12 #ovcs

WMS & RTLS CASE STUDY DEAN JACKSON

locate, track and manage key assets, transactions in REAL TIME Zebra is the leading provider of RTLS supply chain execution solutions that streamline the flow of inventory and information, enabling customers to 14

WHAT IS RTLS? RTLS - Real Time Locator System (RTLS) RTLS is a real time locator RFID system which transmits the physical location of RFID tagged objects. The System requires §  RFID tag to be attached to each object that needs to be tracked §  RF transmitters/receivers located throughout the facility §  A Computerized tracking system to determine the location 15

Zebra Confidential16 DATA BEACON: RFID (ACTIVE) System which allows user to track and identify the location of objects in real time Fastest time to action

Zebra Confidential17 DISCUSSION – CASE STUDY ZEBRA DISTRIBUTION CENTER BUSINESS PROCESS AUTOMATION CHALLENGES OPPORTUNITY

•  Transition from simple, mid-90’s ERP solution to a WMS •  Paper-based, order picking to task-based picking •  Increased picking efficiency •  Created delivery consolidation challenge   18 WAREHOUSE STORY

19 THE CHALLENGES • Resource constraints • Delivery sizes vary (Parcel to LTL to multi-container) • Lack of dedicated staging lanes and limitation of physical space • Pickers “blind” to delivery size • Same day service levels (2pm cutoff for same day shipment) • Increasing Order Volumes (80% of lines drop same day)

Zebra Confidential20 SHIPMENT STAGING NEED @ZEBRA •  Limited staging space –  no option to expand staging space to meet growing business need. •  Shipment size is unknown –  Shipment size of LTL or TL is unknown - missing weights and dimensions at the time of staging. •  Shipments consolidation –  Parallel picking – Multiple operators picking for same customer shipment –  Cannot share same locator for multiple shipments

Zebra Confidential21 FIXED STAGING LOCATORS •  Fixed location in Staging floor for each Locator. –  Pros: •  Physical location for staging can be identified easily. –  Cons: •  Cannot optimize the physical space usage. •  Need more physical space if more locators are mapped. •  Cannot dynamically expand or shrink the space usage based on shipment size. •  If shipment need to be moved from one location to another due to shipment size, need to perform additional transactions in ERP.

22 THE APPROACH IN EUROPE •  Responsibility for managing delivery locations put on the supervisor •  Virtual staging locators recorded on paper •  Solution was not very efficient •  Took an average of 3 to 4 minutes to find delivery •  Problematic on high volume days

23 THE APPROACH IN USA …RTLS DC in North America had the same constraints and challenges as our European DCs…plus higher volume of same day shipments RTLS solution consisting of…… •  Zebra’s Visibility Server Software (VSS) solution •  Active RFID tags that aligned 1:1 with staging locators •  42” monitors around the staging area

24

ORACLE ERP INTEGRATION WITH ZEBRA VSS •  Integration with Zebra VSS is layered to support different deploy options. •  Option 1 : Integrate using Oracle FMW –  Enables you to connect multiple VSS installs centrally –  Enables to model routing rules •  Option 2 : Integrate using J2EE component –  Useful for customers with no middleware foot print. •  Option 3 : Point-to-Point Integration with Zebra VSS –  Direct integration with Zebra VSS Service. Oracle EBS R12 Oracle FMW Zebra VSS Java J2EE Component 1 2 3 25

SOLUTION: DYNAMIC/FLEXIBLE STAGING INTEGRATED WITH RTLS •  Map Oracle stage locator to dynamic staging pod instead of fixed area in the warehouse floor. •  Staging pod can be easily movable and tracked on the floor. •  Warehouse floor is marked with Zones and Lanes and staging pods are placed to represent Oracle staging locator. •  Warehouse operators are provided with Oracle locator code and the Zone/Lane of where staging pod is currently placed. 26

•  Taking Integration to Next level - Integration of Oracle WMS with Zebra RTLS tags to enable dynamic staging •  Warehouse floor physical Zones and Lanes are mapped in Zebra RTLS software. •  Each locator code in Oracle WMS is associated with RTLS device. Zebra RTLS tracks physical location of Oracle locator on the floor. •  In Oracle WMS, along with Oracle locator, display of physical Zone/Lane and color of the locator by making real-time webservice call to Zebra RTLS LIGHTING UP THE WAREHOUSE 27

•  Taking Integration to Next level - Integration of Oracle WMS with Zebra RTLS tags to enable dynamic staging •  Warehouse floor physical Zones and Lanes are mapped in Zebra RTLS software. •  Each locator code in Oracle WMS is associated with RTLS device. Zebra RTLS tracks physical location of Oracle locator on the floor. •  In Oracle WMS, along with Oracle locator, display of physical Zone/Lane and color of the locator by making real-time webservice call to Zebra RTLS LIGHTING UP THE WAREHOUSE 28

•  Taking Integration to Next level - Integration of Oracle WMS with Zebra RTLS tags to enable dynamic staging •  Warehouse floor physical Zones and Lanes are mapped in Zebra RTLS software. •  Each locator code in Oracle WMS is associated with RTLS device. Zebra RTLS tracks physical location of Oracle locator on the floor. •  In Oracle WMS, along with Oracle locator, display of physical Zone/Lane and color of the locator by making real-time webservice call to Zebra RTLS LIGHTING UP THE WAREHOUSE 29

•  Taking Integration to Next level - Integration of Oracle WMS with Zebra RTLS tags to enable dynamic staging •  Warehouse floor physical Zones and Lanes are mapped in Zebra RTLS software. •  Each locator code in Oracle WMS is associated with RTLS device. Zebra RTLS tracks physical location of Oracle locator on the floor. •  In Oracle WMS, along with Oracle locator, display of physical Zone/Lane and color of the locator by making real-time webservice call to Zebra RTLS LIGHTING UP THE WAREHOUSE 30

LIGHTING UP THE WAREHOUSE HOW IT WORKS ? Zone B B1 B2 B3 B4 B5 B6 Zone A A1 A2 A3 B4Not Used Zebra VSS Software Pick Release in Oracle ERP XML Event Publisher REST based call 31

LIGHTING UP THE WAREHOUSE HOW IT WORKS ? Zone B B1 B2 B3 B4 B5 B6 Zone A A1 A2 A3 B4Not Used Zebra VSS Software Pick Release in Oracle ERP Task assigned Locator : 019 Delivery : 1001 XML Event Publisher REST based call 32

LIGHTING UP THE WAREHOUSE HOW IT WORKS ? Zone B B1 B2 B3 B4 B5 B6 Zone A A1 A2 A3 B4Not Used Zebra VSS Software Pick Release in Oracle ERP Task assigned Locator : 019 Delivery : 1001 Where is locator 019 ? Color : Orange Phy Loc : Not Used Orange – Not Used J a v a h o o k XML Event Publisher REST based call 33

LIGHTING UP THE WAREHOUSE HOW IT WORKS ? Zone B B1 B2 B3 B4 B5 B6 Zone A A1 A2 A3 B4Not Used Zebra VSS Software XML Event Publisher REST based call 34 Real-time location Tracking integrated with ERP, eliminates search time completely

35 RETURN ON INVESTMENTS Two key findings - space and productivity savings 25,000 pick drops in 63 days •  Labor costs - $18.78 per hour •  Order search times – >3 Minutes •  Available space – 10,121 sq. ft. Evaluated by

36 BUSINESS RESULTS Evaluated by After evaluating our specific order profiles and volumes… •  450 hours of labor savings a month •  Space savings of 40% by leveraging dynamic staging •  Total Savings of just under $20,000 a month •  Payback – 5.16 Months •  109% – 1 Year ROI

BASIC RTLS & WMS TRANSACTIONS RTLS Dynamic Awareness Description     LPN w/RFID RFID tagged LPNs & Tracking License plate information inbound and movement within the warehouse Cross Docking w/RFID RFID tagged pallets for real time & efficient movement of inbound /outbound cross dock transactions - with details about contents Material w/RFID RFID tagged Kanbans: Item, quantity, lot, revision details Location w/RFID RFID tagged Pallets with location sensors for finished goods movement within the organization, sub inventory, and locator Shipping / Staging w/RFID Shipping Zones tagged with RFID sensors, Staging & Pallets with Customer information and shipping content FLOW / WIP Content w/RFID RFID tagged processes for real-time replenishment with discrete manufacturing details and raw material flow business rules Basic WMS transactions can use RTLS Technology 37

Magstripe 1D or 2D Barcode Passive RFID Wi-Fi ISO 24730 Ultra Wideband GPS Location and identification infrastructure Data aggregation & business rules engine Application and integration framework ORACLE SOA Suite Zebra – Visibility Software (Data and event processing, persistence, visualization, notifications, APIs, SDK’s) Zebra Location Appliance (data interfaces and connectors, sensor APIs to any devices) LOCATION IDENTIFICATION PLATFORM ORACLE EBS INTEGRATION WITH ZEBRA VSS ORACLE FUSION MIDDLEWARE ORACLE ESB / BPEL ZEBRA WEBSERVICE VISIBILITY CONNECTOR ORACLE eBusiness Suite R12ORACLE R12 38

Receiving w/RTLS Tag ID • Vendor receipt • Production receipt • ASN receipt • Cross-docking - inbound • Rules-base direct picking • >FIFO, LIFO, LEFO, FEFO, pick to clean, pick to efficiency Shipping w/RTLS Tag ID • Dynamic Staging • Loading • Packing • Cross-docking - outbound • Rules-base direct picking • >FIFO, LIFO, LEFO, FEFO, pick to clean, pick to efficiency Inventory Tracking w/RTLS Tag ID • Flow Replenishment • Lot control • Cycle counts • Physical Inventory • Inventory Adjustments • Dynamic tracking (date, location, type, etc) Movement w/RTLS Tag ID • Direct Movement • Move request • Transfer out • Transfer In • QC hold and release • Lot control RTLS YARD MANAGEMNT • Visibility of trailers and their locations • Maximize yard space utilization • Leverage a single point of yard command and control with graphical, Web-based interface to enable inbound and outbound shipments Extended RTLS & WMS transactions 39

Joe Clay - Inspirage Implementation Best Practices

Inspirage is a high expertise global consulting firm focused on driving transformational business process improvements from Innovation through Execution™ through the use of Oracle Value Chain applications. 41 Inspirage Services Recognized as the leading firm for: v Product Lifecycle Management v Supply Chain Management, Planning & Optimization v Reverse Logistics, Spares, & Services v Warehouse & Logistics Management v Analytics and Data Visualization v Business Process Improvements Providing Industry-specific programs: v Supply Chain Strategic Advisory services v Business process and solution design v Accelerate and Industry-specific solutions v Value Chain Plus® (EPO®, BPS, and Hosting) v Technical Architecture and services

42 WMS Implementation Overview 1.  Start in the Warehouse 2.  Be Open to Process Change 3.  Start Simple 4.  Be Smart with Supporting Technologies 5.  Test and Train

•  A WMS Implementation needs to start on the warehouse /shop floor 1. Start in the Warehouse 43 •  Implementation Consultants need to start by learning your operations by spending time in the warehouse. Ø  MISTAKE: bringing warehouse staff to the consultants and conducting the implementation project in a conference room •  Super Users from the floor should be involved throughout the process allowing more opportunities to identify exceptions

•  Be open to review and change existing business processes –  Recognize difference between “competitive differentiators” and “we’ve always done it that way” –  Why not Oracle standard WMS functionality? 2. Be Open to Process Change 44

•  Start simple and keep it simple –  Companies can often become enamored of all of the possibilities and try to do too much. –  A better approach is to start with what you absolutely need –  Allow follow on project(s) that optimize those business processes and/or address other secondary processes 3. Start Simple 45

–  Technologies to consider: •  Active RFID – create flexible order staging areas •  Voice – client-based voice solutions support more than just picking •  Print and Apply – automate box or pallet labeling at manufacturing completion or ship confirm –  Select a partner that offers real expertise and experience with data collection, label printing and data capture technologies •  Make your implementation partner accountable for those solution components 4. Be Smart with Supporting Technologies 46 •  Data collection and printing are your end-users interfaces to Oracle WMS. •  Review technology and barcode usage to reduce or automate transactions

–  Own the testing process. Testing is one of the best ways to training your super users and other key personnel. –  Give ownership of end user training to super users and mangers. The only way to be sure your team is self-supporting is to ensure they take ownership of during the implementation –  Conducting training on the warehouse floor when possible can provide the hands-on feel needed for high user adoption 5. Test and Train 47 •  Dedicate sufficient time to Unit Testing and Training

•  Inspirage WMS ROI Study –  Review existing business processes –  Review existing interface/integration requirements –  Identify impact of WMS •  Staffing •  Facility/space utilization •  Inventory levels and accuracy •  Transaction accuracy and overhead •  2 day on-site evaluation with report identifying ROI opportunities and estimate Next Steps with Inspirage 48

Questions & Answers Joe Clay, Inspirage Solution Director, Logistics Management joe.clay@inspirage.com | 610-635-9295 Dean Jackson, Zebra Technologies Global Partner Manager Mark Lewis, Oracle Director WMS 49

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