Oracle Warehouse Management Mark Mandeville Sr. Solution Consultant Warehouse Management At-a-Glance Internal Processing Inbound • • • • Purchases Mfg / Assembly Transfers Outside Processing • • • • Pick Pack Inspection Count • • • • Assembly Storage Move Replenish Outbound • • • • Customer Shipments Vendor Returns Transfers Outside Processing “Senior level executives now realize that the automated warehouse is as much a part of e-commerce and e-fulfillment as the Internet.” - Supply Chain Yearbook Warehousing Functionality Spectrum Product / Order Complexity High Low Highly Automated Facilities Automate physical inventory handling Warehouse Management Implement a true “execution system” using system directed tasks and task management RF / Barcode Only Improve accuracy and reduce latency of existing transactions Manual Inventory Record transactions and track balances Small Transaction Velocity / Volume Large Business Pressures Just-in-Time Delivery Guaranteed Availability • How can I improve the speed of warehouse operations? • How can I improve order promise accuracy? • How do I integrate operations to reduce order processing time? • How do I create a global view of inventory? Inbound Internal Processing Outbound One Size Fits One Lowest Total Cost • How can I manage SKU proliferation? • Where can I reduce inventory while maintaining high fill rates? • How do I ensure labeling compliance? • How do I improve labor efficiency? Operational Challenges Procurement Manufacturing Order Management Warehouse System 1 Warehouse System 2 Warehouse System N RF Middleware RF Middleware RF Middleware Integration and Operation Complexity, Localized Solutions A Need for Change Leading Business Trends • Fulfillment Processes Integrated with Partners • Support All Company Processes (e.g. Service, Mfg) • Automated Material Handling for Improved Productivity • Mobile and Automatic Data Capture (e.g. RF, RFID) • Streamlined Material Flow (e.g. Cross-Docking) How Delivers Foundation: Unified Information Architecture Develop Contracts Market Projects HR Sell Order Customers, Suppliers, Finance Plan Products, … Procure Maintain Service Make Fulfill Warehouse Management • Common data model enables a single source of truth • Comprehensive suite of applications designed to work together • Robust set of integration services based on open standards • Modular deployment by business flow • Single global instance implementations Support for the Integrated Enterprise Built-In, Not Bolt-On Functionality Procurement Manufacturing Fulfillment • Eliminate Integration • Reduce Cost and Complexity MSCA & Warehouse Management Service Finance • Reduce Risk and Upgrade Issues Planning • Eliminate Problems with Reconciliation • Simplify Support Oracle Mobile Supply Chain Apps (MSCA) Support Basic Warehousing Needs… Built-in Mobile User Interface Mobile Quality Quality Collections, Specifications, … Mobile Manufacturing Moves, Issues, Returns, Scrap, Completions, … Mobile Receiving Direct, Std, Inspect, Cross-Dock, Print, … Mobile Inventory Misc. Transactions, Transfers, Counts, … Built-in RF Middleware RF Base Station RF Device Mobile Shipping Pick, Confirm, Ship, Confirm, Print, … Mobile Transaction Server Apps / Database LAN or WAN Telnet Over TCP/IP SQL Net What Do I get with . . . WMS Installed, WMS Organization MSCA • Mobile User Interfaces for • Inventory • Receiving • Shipping • Manufacturing • Quality • Labeling • LPNs • Cost Groups • Rules • Tasks • Cartonization • Exception Workflows Oracle Warehouse Management Solution …or Provide a Complete Warehouse Execution System Label RMAs Purchases Transfers Receive Inspect RF Support Global RTVs Orders Transfers Ship Assemble Cross Dock Putaway Replenish Tailorable Rules & Workflow Process Cost Visibility Pack Directed Pick WIP Issues Count Transfer Seamless Integration Planning Purchasing Manufacturing Move Fulfillment Oracle Warehouse Mgmt Solution Enables you to… Support Lower Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise Rules-Driven Processes Flexibly Meet Needs without Customization User Defined Strategies & Rules Transaction (e.g. Pick) (e.g. > 30 Days Shelf Life) Suggestions (e.g. LPNs or Locators) Support for: Directed Picking, Directed Put-away, Tasks Assignment, Costing, Labeling • Eliminates customizations • Supports common tool with examples • Easily changed and evolved • Improves ROI and ongoing support • Accelerates implementation • Increases long-term flexibility Additional Ways to Avoid Customization Characteristics RF Device Independence Benefits • Same application for • Maximum flexibility of all certified devices RF device selection • Automatically adapts • Lower support costs to any form factor Lot & Serial Attributes • User definable fields • Flexible interfaces • Use throughout WMS • Support your specific (UI, Rules Engine, etc.) data needs Cost-Effective Global Deployment Think Locally, Act Globally • Deploy and manage on a single global instance • Support with single worldwide organization • Support for statutory and customary local requirements • Multi-lingual, multi-currency, multi-org, multi-national capabilities - 30 languages, all installable in same unicode instance Oracle Warehouse Mgmt Solution Enables you to… Support Lower Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise Improve Warehouse Mgmt Functions Increase Efficiency of All Resources Warehouse Efficiency Worker Productivity Resource Utilization Inventory Utilization • Automate Warehouse Processes • Optimize Total Warehouse Space • Optimize Task Assignments • Maximize Use of Equipment • Reduce Worker Travel Time • Optimally Locate Inventory to Reduce Travel Time • Reduce Inventory Carrying Costs • Streamline Material Flow • Reduce Inventory Obsolescence • Automate Replenishment Worker Productivity Automated Task Management Create, Organize, Dispatch Tasks to Optimal Resource Task Queue Pick Wave Create & Allocate Task Split Merge Sort • Dispatch Tasks To RF Devices • Support Multiple Picking Methodologies • Match Skills and Equipment to Tasks • Perform Task Sequencing and Interleaving • Create Paperless, Streamlined Processes • Align Pick Plan with Business Mix • Reduce Safety Issues and Training Costs • Significantly Reduce Travel Time Automated Compliance Labeling Meet Customer Specific Requirements • Support Numerous Types and Variations of Labels - LPN, LPN content, LPN summary, material, serial, location, shipping, shipping contents, WIP contents • Flexible to Meet Your Business Needs - Design and rendering choices - Highly flexible configuration - Adapts to changing requirements • Data Transmitted via XML directly to printer or via middleware of choice Print at the Right Time in the Correct Format Barcode & License Plate # Support Perform Complex Inventory Transactions Multiple Packages and Products Single Unique Number for All Information = Barcode Support • Automatically Track All Related Product Information • Capture All Information with a Single Scan Reduces Cycle Time & Improves Accuracy Container and LPN* Support • Supports Infinite Nesting Levels • Perform Complex Moves via a Single Scan • Fully Integrated with ASNs Improves Efficiency, Accuracy, and Tracking *License Plate Number Cross-Dock and Direct Ship Selectively Accelerate Warehouse Material Flow Cross-Dock Receive Inspect Deliver Put-Away Inventory Direct Receipt • • • • • Configurable flows Express ASN receipt Cross-docking Express picks & load Direct ship Pick Release Pick Drop Ship Direct Ship • • • • • Adjust implementation to business Accelerate receiving process Reduce handling and inventory Increase operator efficiency Support lean mfg processes RFID-Initiated Shipping & Receiving Process Transactions with No Manual Intervention (1) Load of pallets and / or cartons with RFID tags on each RFID Middleware (Oracle AS) (3) Interface to readers, clean and filter data, then pass IDs to application RFID Event Processor (4) Access objects associated with the ID's (e.g. LPN's on ASN) then raise correct Business Event (5) Access associated source document (e.g. the PO’s ASN) Application APIs (6) Process the Business Event, (e.g. Receipt of pallet or carton) (8) Putaway, rescan or divert material Response & Exception Handling (7) Confirm success or failure (e.g. trigger green light or sound buzzer) (2) Drive load through RFID Reader in Receiving Dock Resource Utilization Directed Picking and Put Away Automatically Suggest Optimal Locators Locator Receipt Locator Pick Business Logic Locator • Slot dynamically based • Optimize the use of on velocity, size, etc. • Control hazardous materials / co-mingling • Handle task exceptions with reason codes storage locations • Minimize inventory fragmentation • Reduce chance of obsolescence Inventory Utilization Advanced Inventory Capabilities Provide Single Source of Truth for All Inventory • Maintain Accurate, Real-Time Information - Physical inventory measurement - Holding and other associated costs - Cycle counting • Manage Inventory Levels - Automated replenishment - Kanban management - Transfers between facilities • Support Advanced Tracking Capabilities - Material status control - Inventory ownership tracking - Advanced lot and serial control Performance Management Tools Proactively Manage Warehouse Performance • View current status, perform transactions and calculate availability via Materials Workbench • Monitor and refine facility activity via Control Board • Provide real-time status with active alerts and notification messaging • Handle last minute changes with workflow exceptions • Keep key personnel informed with multiple reporting options Oracle Warehouse Mgmt Solution Enables you to… Support Lower Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise Comprehensive Logistics Solution Integrated Logistics Adapts to Changes Carriers / 3PLs Global Customers Collaboration & Event Management Inbound Supply Source Plan Rate Book / Manage Pick & Tender Wrhs Label Pack & Ship Track Settle Integrated Planning & Execution Continuous Improvement On-Time Performance Customer Satisfaction Carrier Analysis Outbound Demand Destination Comprehensive Logistics Solution Enables Cross-Functional Process Optimization Planning (Plan & Monitor) Inventory Optimization Dynamic Rerouting & Drop Ship Supply / Demand Matching Transport (Move & Track) Warehouse (Store & Manage) Stage & Cross Dock WMS and Manufacturing Extends Beyond Sales Order Inputs • Solution Integration Enables: Sales Orders Manufacturing Processes - Task-managed component picks Cross-dock to / from manufacturing Directed ship from manufacturing Compliance labeling LPN and lot / serial creation and tracking • Supports Full Spectrum of Tasks: - Simple kitting to full BOM / work WMS Solution order jobs - Seamless CTO flow WMS and Service / Spares Integrate all Inventory Transactions Warehouse Mgmt Manage high volume DC operations (pick, pack and ship) with WMS and leverage internal orders to release parts to the field Distribution Center • Provide a single, common view of all inventory • Integrate and manage internal and Regional / Field Field Technician Warehouses Stock Service / Spares Mgmt field inventory locations • Consolidate / coordinate all field requests to maximize DC efficiency Integrated Throughout Entire Offering… Business Intelligence Deliver Daily Business Intelligence Real-Time Access to Complete Business Information What is my inventory accuracy for all products? What are my labor costs for each warehouse? What are my book-to-ship and receipt-to-putaway cycle times? How is my warehouse How are inventory – Manage By… – – space utilization changing? turns and quantities changing? Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance Mfg & Inventory Intelligence: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons • Daily updates on key performance indicators Real-Time Results Performance Measures Reports Links • Actionable information on savings and incremental revenue opportunities • At a glance: Graphs - Inventory quantity and turns - Inventory accuracy - Pick-to-ship cycle time - Warehouse labor costs Oracle Warehouse Management Solution Single global instance, mobile applications, built-in integration, barcode and RF capabilities Support Lower Cost of Ownership Optimized space and warehouse utilization, improved worker productivity, flexible process flows, monitoring and mgmt capabilities Increase Warehouse Efficiency Out-of-the-box integration, full logistics support for all SCM flows Integrate WMS Throughout the Enterprise Oracle Warehouse Management Products Develop Contracts Market Projects HR Sell Customers, Order Suppliers, Finance Products, … Plan Procure Maintain Make Service Fulfill Inventory Management Warehouse Management Mobile Supply Chain Applications Logistics Intelligence Evolution of Oracle Logistics Base Differentiators… • Built-in, not bolt-on - RF/mobile technology & transaction integration • Flexible rules-based processes • Configurable material flows • Inbound logistics – receiving, inspections, directed put-away, cross docking, ASN • Outbound logistics – dock assignment, pick wave selection, picking methods, cartonization / packing, shipment execution, trip & delivery planning • Advanced inventory mgmt – container & LPNs, lot/serial genealogy, status, Kanban • Reverse logistics – RMA receiving, supplier returns, refurbishment & recycling New in 11i.9… • VMI & consigned inventory • Task & labor plng control board • Delivery consolidation by locator and / or LPN • Cluster picking & WIP picking • eAM component picking • UPC & smart barcode support • Single mobile UI for all receiving transactions • Additional material handling equipment integration • Simplified rules engine def’n and examples library • Load tendering • Online tracking of ship status • Carrier selection & freight rating • Automated shipping processes • Non-conformance mgmt New in 11i.10… • Configurable picking & streamlined shipping UI’s • RFID-based transactions • UCC 128 / UCC 14 support • Work-plan based put-away • Catch weight support • Packing workbench • Over picking & bulk picking • Inbound transport logistics • Freight payment & audit • Delivery consolidation • Truckload rating • Transportation planning – load consolidation, continuous moves, automated mode and carrier selection • International drop shipments • Logistics-related analytics/KPIs Customer Case Studies • Global manufacturer of insulated food and beverage containers, soft coolers, and lunch kits • Live on 11i - Warehouse Management, Order Management, Financials, E-Business Suite On Demand - Saved $665K in one-time and $180K in annually recurring IT costs - On track to save $6.2M through efficiency gains for 222% ROI - Shortened monthly close from 6 days to 2 days “With more demanding on-time requirements, inventory accuracy is essential. With Oracle Warehouse Management we know exactly what product we have, and where, at any point in time and the accuracy level is so high that our auditors no longer require us to take a physical inventory." -- Mike Yeager, Director of Logistics Reduced inventory by $300K, expects to cut an additional $600K Raised warehouse labor productivity by 15%, expects to reach 29% • Manufacturer, sells and distributes quality informal tableware, cookware and mugs - Headquartered in the UK with operations in Europe, North America, Australia, Asia, • Live on 11i - Warehouse Management, Procurement, Financials, Human Resources - Chose Oracle WMS to streamline supply chain execution from manufacturing to shipment - Goal: achieve 100% paperless warehouse Increased small order picking productivity by 200-300% Ship 30% more product without an increase in headcount Increased inventory accuracy to over 99% Oracle Warehouse Management Support Lower Total Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise Thank You!