Supply Chain Execution Systems

Warehouse Management Systems

Lecture Resource

Adapted with permission from presentations by John Hill, 2002, 2003 John M. Hill, ESYNC
Supply Chain Execution Systems (SCES)

Manage inventory, space, material handling

equipment, labor, and transportation resources
in real time to assure timely, error-free
fulfillment, delivery, and visibility of order status
throughout the supply chain
Matching material and information flow
SCES Impact Areas
Fulfillment
Delivery
Visibility
Responsiveness
Fulfillment and Delivery
Material handling and controls
Right condition
AutoID and data collection
Right material
Supply chain execution systems
Right time
People
Necessary for all of the above
Responsiveness
The best decision making is executed on the
basis of events as or before, not after, they
occur
Responsive logistics systems provide discipline
and control that is based not only upon plans
and performance goals, but also upon the
dynamics of actual operations
SCES Components

Warehouse and Labor Management

Transportation Management
Yard Management
International Trade Logistics
Supply Chain Visibility and Event Management
THE SYSTEM HIERARCHY
ENTERPRISE SYSTEM
Customers Customers
Suppliers
ADMIN/FINANCE MANUFACTURING PLANNING Suppliers
Carriers Purchasing MRP Carriers
Demand Mgmt
Order Management MES APS
EDI / EDI /
WEB Enterprise Network WEB

LABOR
MANAGEMENT

YARD
WMS TMS
MANAGEMENT

Inventory Order Picking Staging Shipping Task

Receiving Storage
Mgmt Process Replen Loading Mgmt

Local Area Network

Data Entry Devices Material Handling Device Control

Warehouse Management Systems
Manages warehouse inventory, space,
equipment, and labor resources to direct the
flow of materials and information from receiving
and putaway to light assembly, order picking,
value-added processing and shipment
WMS History
1975: First WMS installed at J. C. Penney.
1986: First WMS installation in C on a UNIX platform.
1990s: Hundreds of new stock locator & WMS
systems; Windows NT platform emerges.
1995: MHIA WMS product section formed.
1999: First WMS company reaches annual revenues of
$100 million.
2000: Expanded suites with TMS & SCV.
Today: User-configurability & scalability remain key
differentiators.
WMS Functions
Receiving
Blind
ASN/EDI
Conventional or Automatic
Putaway
Dedicated, Random or Hybrid
Location Selection: System or Operator
Put Confirmation
Picking and Shipping
Pick by Order, Batch, Wave
Pick Confirmation
Shipping Check Lists
Manifests, Bills of Lading
WMS Differentiators
Order Planning & Cartonization
Scheduling Cycle Counting
Unit of Measure Replenishment &
Conversion Consolidation
Location Management / Task Assignment &
Slotting Monitoring
Inventory Allocation Reverse Logistics
Shelf Life Monitoring Scalability & Configurability
Lot & Serial Number Upgrade Support
Tracking
WMS Setup
Product Files
Descriptions
Dimensions
Units of Measure
Bills of Material
Substitutions
Location Files
Numbering / Sequencing
Dimensions / Capacity
Equipment Files
Employee Files
Employee Task Prioritization
Workload Management
Equipment Profiles
Material Profiles
Location Profiles
Operator / Equipment Matrices
Operator / Task Priorities
Labor Standards
Workload Management
New Tasks TASK ALLOCATION
Priority
2137
Operator Authorizations
RFDC 4532
9873
Equipment Type
5471 Current Location
1234 3679
Job Completions Tasks in Memory
Work Requests source |dest|
dest | time-req
source |dest
req | load type | etc.
|dest|| time-req
req | load type | etc.
source |dest
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req | load type | etc.
source |dest
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req | load type | etc.
source |dest
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req | load type | etc.
source |dest
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req | load type | etc.
source |dest
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req | load type | etc.
RFDC Task Manager source |dest
|dest|| time-req
source |dest
req | load type | etc.
|dest|| time-req
req | load type | etc.
source |dest
|dest|| time-req
req | load type | etc.
source |dest
|dest|| time-req
req | load type | etc.
Work Queue
source |dest
|dest|| time-req
req | load type | etc.
source |dest
|dest|| time-req
req | load type | etc.
source |dest
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req | load type | etc.
Task source |dest
|dest|| time-req
source |dest
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|dest|| time-req
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RFDC Link
Material Handling Interfaces
Conveyor
Sortation
Palletizer
AGVs
Pick (Pack)-To-Light
Carousel
AS/RS
Systems Interfaces
Purchasing
Order Management
MRP / MES
Labor Standards / LMS
Load Planning
Freight Rating / TMS
Slotting
Receiving
ASNs / Purchase Order Receiving
Carrier Appointment Scheduling
Pre-Tagged Receipts
Blind (Unanticipated) Receipts
Load Tagging/Labeling
Quality Assurance
Returns
CARRIER SCHEDULING
Receiving
Key-Enter Order Number,
Operator Assigned to Receiving Product ID, Quantity &
Bar Coded Pallet ID (Scan or Key-Enter) Condition
(Verify Product, Quantity & Condition) (Pre-Printed License Plate)

RFDC
WMS
RFDC
(Print & Apply LP)
Match LP to ASN or Retrieve PO Stage
Stage Validate Receipt Crossdock
Crossdock Resolve Exceptions QC Move
QC Move Check Demand Putaway
Putaway Issue Task
Update Inventory Records
Reverse Logistics

HOLIDAYS 2000 Warehouse

Wasteland or
eSales: Competitive
$6 Billion Edge?

Returns:
$900 Million
Source: BizRate.com
Storage and Putaway
Location Selection
Override
Location
Confirmation
Crossdocking
Relocation
Consolidation
 Putaway and Move
Operator Assigned to Putaway / Move Move to Designated Location
Scan License Plate Scan Location Bar Code

RFDC
WMS RFDC

Destination
Storage Validate Location
Check
Resolve Demand
Exceptionsfor
Crossdock
Product
Issue Drop Instruction Confirm Drop
Quality
-- -Issue
- - - - - -Move
- - - - - Task
---------- Await Next Task
Returns
Other Update Inventory
Issue Next Task
Inventory Management
Lot, Date Code, and Serial Number Tracking
Shelf-Life Monitoring and Rotation
Catch Weighing
Routine and Exception Cycle Counting
Full Physicals
Replenishment

Forward Pick Locations

Floating Forward Pick
Replenishment Trigger Controls
Demand Replenishment
Batch Replenishment
Reslotting
Pick Planning
Host Download Format and Frequency
Wave and Batch Planning
Material Allocation
Order / Shipment Release
Changes and Cancellations
 Picking
Operator Assigned to Picking Move to Location
Ready for Next Pick Task Scan Location Bar Code

RFDC WMS RFDC

Validate Location
Issue Pick
Display Pick Location ------------------- Scan Item Bar Code/LP
Validate Item / Quantity Pick / Confirm Quantity
Resolve Exceptions ------------------
Update Inventory Await Next Pick
-------------------
Issue Next Pick
Staging and Shipping
Trailer Scheduling / Processing
Staging Location Management
Staged Load Confirmation
Door / Truck Verification
Shipping Labels
Manifests / Bills of Lading
Shipment Confirmation
WMS Cost Breakdown
COMPONENT % TOTAL COST

Computer 6
RFDC 24
Bar Code Label Applicators 9
Hardware Subtotal 39
WMS License 8
WMS Enhancements 10
Host Interface 6
Other Software Licenses 4
Software Subtotal 28
Location Labels 6
WMS Installation Services 21
Project Team Costs 6
Implementation Subtotal 33
WMS Benefits
Potential Improvements in: Potential Reductions of:
Inventory accuracy and turns Damage/Shrinkage
Space utilization, stock Lost stock
rotation
Safety stock
Order, lot and serial number
tracking Search times and
Backorder handling deadheading
Crossdocking Paperwork
Resource planning and Human error
scheduling Physical inventory taking
Labor and equipment Labor, equipment and utility
productivity costs
Performance measurement
Courier/Delivery costs
Customer service
Outside warehousing
WMS Justification
Direct Labor Indirect Labor
Pre-receiving Floor supervision
Receiving Expeditors
Returns Inventory control
Putaway Training
Replenishment Overtime
Pallet picking Other
Case/Piece picking Administration
Value-added processing Shipment planning
Shipping Inventory management
Overtime Traffic
Overtime
Other
WMS Justification
Other Tangible Savings
Space utilization
Transportation
Expedited delivery
Reduced paperwork
Reduced operating costs
Damage
Shrinkage
Perishable loss reduction
Storage/picking/shipping
errors
Physical inventory costs
Intangible Savings
Order cycle times
Customer service
Inventory turns
Reduced obsolescence
Lost orders
ABC facilitation
Performance measurement
WMS Benchmarking
Order Fulfillment
Inventory Management
Warehouse Productivity
Transportation Performance
Order Fulfillment Measures
On-time Delivery
Order Fill Rate
Order Accuracy
Line Accuracy
Order Cycle Time
Perfect Order Completion Percentage
Inventory Management Measures
Inventory Accuracy
Damaged Inventory
Days On Hand
Storage Utilization
Dock to Stock Time
Inventory Visibility
Warehouse Productivity Measures
Orders per Hour
Lines per Hour
Items per Hour
Cost per Order
Cost as % of Sales
Transportation Performance Measures
On-time Deliveries
Damage
Demurrage Cost Percentage
Assessorials Cost Percentage
Missed Appointments Percentage
Freight Bill Accuracy
Cost per Order
Cost as % of Sales
Creating a Responsive WMS
Use contemporary ADC technology and systems to assure
Accurate execution of receiving, storage, and move tasks
Error-free picking, replenishment, and shipping
Traceability
Provide seamless interfaces to other corporate systems to assure
Real-time visibility of inventory availability
by SKU, quantity, lot number, serial number and shelf life by location
Real-time order confirmation and status for customers
Event-driven exception handling
Facilitate a quick match of available resources to current and
expected inbound, replenishment, and outbound workload
Select the best operators and equipment for tasks based upon
proximity, skill sets and priority
Task operators to immediately store or cross-dock receipts
Creating a Responsive WMS
Support returns processing and reverse logistics
Use task interleaving to minimize deadheading
Improve order consolidation, wave planning, inventory allocation, and pick
sequencing
Identify consolidation opportunities to free space and reduce outside
storage requirements
Support bill of material, work order, and value-added processing
Update inventory records as events occur
Provide accuracy that allows replacement of full physicals with scheduled
cycle counts
Time stamp each transaction and identify the operator who performed it
Provide feedback to the workforce and support performance measurement
Measure supplier and carrier performance
WMS Trends
Further industry consolidation as well as
alliances with enterprise systems providers
Activity based costing and management
Embedded profiling tools for space use analysis
to facilitate relayout and inventory slotting
Object-oriented tool kits for requirements
modeling and WMS development