Finding the right WMS: A guide to the different types, the value, and your options to improve efficiency, throughput and cost.

Transcription

1 Finding the right WMS: A guide to the different types, the value, and your options to improve efficiency, throughput and cost September 6, 2012

2 Today s Speakers Steve Banker Service Director, SCM ARC Advisory Group sbanker@arcweb.com Richard Kirker Solution Owner Warehouse Management richard.kirker@sap.com Andres Botero Global Lead SCE Marketing andres.botero@sap.com 2011 SAP AG. All rights reserved. 2

3 Warehouse Management Defined A warehouse management system s primary mission is to manage a ware-house s resources, including space, labor, equipment, tasks, inventory, and material flows. At ARC we define a WMS as a real-time solution that utilizes radio frequency, voice recognition, radio frequency identification (RFID), or real-time location systems. One of the Most Mature Enterprise Applications Over 30 Years Old $1.3 Billion Market Growing at Over 7% per year 3 ARC Advisory Group

4 Best Technologies for Reducing Costs in the Warehouse Over the past five years, which technology implementation has led to the greatest reduction in warehousing costs at either an individual warehouse or network of warehouses? Warehouse Management 42,3% Voice Recognition Units Labor Management Inventory Planning Software Conveyors and High Speed Sortation Automatic Storage and Retrieval Systems Other Software Other Automatic Identification Other Material Handling 13,5% 9,6% 9,6% 7,7% 5,8% 5,8% 3,8% 1,9% 0,0% 15,0% 30,0% 45,0% 4 ARC Advisory Group

5 Payback Period for WMS What was your payback period for this technology (brand new WMS or upgrade)? Less than 6 months 13,6% Between 6 months and 1 year 18,2% Between 1 and 2 years 22,7% Between 2 and 3 years 22,7% Greater than 3 years 13,6% Not yet obtained 9,1% 0,0% 10,0% 20,0% 30,0% 5 ARC Advisory Group

6 WMS Solutions Exist on a Continuum WMS Light WMS Mid-Range Solutions Best-of- Breed WMS Continuum SAP EWM is Best of Breed, SAP WM is a Mid-Range Solution 6 ARC Advisory Group

7 SAP's Warehouse Management History ( ) A long history of warehouse management business, process, and IT expertise SAP R/3: warehouse management functionality (SAP R/ ) SAP Supply Chain Management (SAP SCM) SAP EWM application (SAP EWM ) (SAP EWM ) (SAP EWM 9.0) Goods storage Logistics execution Distribution center logistics Advanced warehouse management Best-in-class warehouse management 2012 SAP AG. All rights reserved. 7

8 SAP WMS products: from ERP WM to EWM New generation warehouse process flexibility, performance and coverage SAP ERP Warehouse Management (Continuous improvement / maintenance) Migration Tools SAP SCM Extended Warehouse Management (Strategic investment solution / strong roadmap) Basic warehouse processes Simple warehouse operations Small & medium-sized warehouses Comprehensive warehouse mgmt. processes Full process transparency Flexible automated processes High performance, high volume warehouse operations Medium & large-sized warehouses Mid-Range Best-of-Breed 2012 SAP AG. All rights reserved. 8

9 Factors to consider Starting point Any WMS or AutoID in place? Standard ERP across company in place? Cost TCO Type of warehouse (DC, spare parts, factory) No. of warehouses in network Complexity of warehouses Likely need for flexibility (downstream vs. upstream in supply chain) Integration considerations 9 ARC Advisory Group

10 SAP Supply Chain Execution Platform SAP ERP Order-to-Cash Procure-to-Pay Dangerous Goods Mgmt. SAP GTS Customs & compliance mgmt. Supply Chain Execution Platform SAP Transportation Management SAP Extended Warehouse Mgmt. SAP Event Management (Track & Trace) Supply Chain Execution Platform Synchronized solution delivery SCE Suite implementation in 1 instance Out-of-the box SCE integration 2012 SAP AG. All rights reserved. 10

11 Common EWM drivers over ERP WM Warehouse Order Creation System creates optimized work packages (e.g., pick-path, pallet build, etc.) Sophisticated wave management Advanced Yard Management Functionality Deconsolidation/fanning Slotting Rearrangement (change bin assigned to product because of a change in activity or other characteristic) Advanced labor management functionality Internal routing warehouse moves can be granularly modeled by process or layout 2011 SAP AG. All rights reserved. 11

12 Common EWM drivers over ERP WM (2) Advanced replenishment techniques of forward picking areas Native integration with Environmental, Health & Safety (EH&S) for route determination, storage checks, dangerous goods paperwork Flexible mobile data entry framework (e.g., screen modification wizard, exception handling, etc.) Improved analytics with delivered BI and BOBJ Content (Crystal Reports, Xselsius Dashboard) Warehouse Monitor as central reporting and management tool Proven performance in high-volume environments More enhancement capabilities without modifications Goods Receipt Optimization (ability to check existing inbound deliveries or create new inbound deliveries from expected goods receipts) EGF (Easy Graphics Framework) for creating Dashboards 2011 SAP AG. All rights reserved. 12

13 Common EWM drivers over ERP WM (3) Advanced connection Material Handling Equipment without middleware (direct control at plc level) Removes restrictions in serialization Removes restrictions regarding Handling Units Native RFID integration with Auto-ID Enterprise Automatic stock adjustment with plant-to-plant delivery discrepancy Initiation of all warehouse activities from EWM even as decentralized deployment (e.g., putting stock on hold, restricting batches, scrapping) More integration with more Business Suite components (e.g., Invoice before Goods Issue) Production staging in decentralized environment 2011 SAP AG. All rights reserved. 13

14 Differentiators and value of SAP EWM Comparison of SAP EWM with WM functions of SAP ERP SAP s strategic warehouse management solution Enhanced Visibility and flexibility Labor management 2011 SAP AG. All rights reserved. 14

15 Overview SAP EWM Customer & Market Status Strong customer growth and implementation momentum Facts and figures Sample customers Over 120 new customers in 2011 More than 150% new installations in 2011 Over 150 ongoing implementation projects Productive use of SAP EWM in 20 countries and 24 industries Live customers and live sites Coca-Cola Enterprises Customer geographical coverage Live sites Live customers 50 0 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec SAP AG. All rights reserved. 15

16 WMS Situation Industries Who adopts SAP Extended Warehouse Management and why? Manufacturing & Distribution Consumer Products & Life Sciences Retail & Wholesale Distribution Discrete Manufacturing & High Tech Process Industries & Chemicals Logistics Service Providers SAP WM and New Customers Existing ERP customers with legacy or Niche warehouse solutions Existing ERP WM customers New customers with legacy solutions, multiple solutions, multiple architectures Why do Companies select SAP EWM? Reduce costs through better warehouse efficiency, increased labor productivity and better space utilization Increase transparency in stock and processes Increase flexibility in warehouse process modeling Implement customer specific put-away and retrieval strategies Quickly onboard new customers Better manage value added distribution processes Strong integration with other SAP solutions Integrated Material Flow System (MFS) for automated storage and retrieval 2011 SAP AG. All rights reserved. 16

17 The best are leading the way with SAP EWM Increased speed and significantly reduced picking times 34% ongoing labor cost reduction Near zero customer-complaint rate 30% increase in warehouse productivity 20 warehouses live using the same template 2012 SAP AG. All rights reserved. 17

18 Services and ecosystem around SAP EWM Strong service offering and ecosystem Service and support Partners Education Ecosystem SAP consulting practice 24x7 global support Quality assurance services and SAP Safeguarding Rapid-deployment solutions Global partners Expert logistics partners Local partners Complementary software products Classroom training E-learning Certification program SAP Community Network User group for SAP EWM Social networks for SAP EWM Custom development 2012 SAP AG. All rights reserved. Public 18

19 SAP EWM Migration Tools & RDS SAP ERP WM > SAP EWM Migration Tools Accelerated migration of data from WM in SAP ERP to SAP EWM SAP ERP Master data, inventory, SAP EWM Migration Tools Master data migration Products Bins Stock Physical Inventory Migration guide Rapid Deployment Solution System / data migration support 2012 SAP AG. All rights reserved. 19

20 ARC Advisory Group research indicates SAP is #1 in WMS software market segment 1 Just released report by ARC titled Warehouse Management Systems: Worldwide Outlook (August, 2012) evaluates market share of all vendors by geography, segment, category and customer tier. Results: SAP is #1 in the WMS software market segment 1 SAP EWM s market share has experienced tremendous growth SAP is #3 in market share in the overall 2 WMS market 3 SAP is #1 in overall market share in Latin America and #2 in Asia, the regions forecast to be the fastest growing in Based on market share. 2. Overall WMS market includes software, maintenance, implementation, and SaaS. 3. If the report had included revenue from the SAP ERP WM product, SAP s market share would have been even higher. 20 ARC Advisory Group

21 ARC Advisory Group research indicates SAP is #1 in WMS software market segment 1 Some customers tell us that SAP s EWM solution is becoming functionally rich enough that it can be considered a best of breed solution. SAP EWM has gained strong traction in the marketplace due to its robust functionality, interoperability with the SAP suite of solutions, and the large existing SAP installed base of potential customers. This solution offers robust functionality that includes labor management and advanced slotting functionality without any extra fees Built-in support for most languages gives the product global appeal. The product has gained traction in the marketplace (the number of live sites doubled in 2010 and expanded at an even faster rate in 2011) due in part to offering a robust solution with differentiated functionality. SOURCE: ARC Advisory Group Warehouse Management Systems: Worldwide Outlook , 08/ ARC Advisory Group

22 Wrap up The WMS market Value of a WMS Different types of WMS Market evolution and SAP EWM ARC Advisory Group

23 Wrap-up SAP EWM Comprehensive, deep warehouse management expertise Best-in-class, integrated warehouse management solution Strong and growing customer base Strategic investment area for SAP Integral part of platform road map for supply chain execution 2012 SAP AG. All rights reserved. 23

24 Thank you! Questions? Richard Kirker Solution Owner EWM Andres Botero Global Lead, SCE Marketing Steve Banker Service Director, SCM ARC Advisory Group

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