MOUS Jamie Silverman Business Development Manager Inyxa

Transcription

1 A Journey to Warehouse Automation MOUS Jamie Silverman Business Development Manager Inyxa

2 Synopsis With an increased focus on Supply Chain Management, including speed to deliver, order efficiency, and customer satisfaction, organizations are contemplating increased investment in warehouse automation now more than ever. In this session, we will walk you through the Automation journey at a few of our E-Business Suite customers, where significant productivity gains were achieved through intelligent integration with warehouse automation technologies. Attendees will walk away with a better sense of some of the challenges involved, and get to see first-hand some of the tools & techniques used to overcome these challenges.

3 AGENDA About Inyxa Supply Chain Trends Case Studies Conclusions

4 About inyxa Chicago-based Supply Chain Solutions firm Oracle partner since 2008 Member of the Oracle Supply Chain Advisory Board Global Delivery Capability using two Development Centers in India, and an experienced Onsite team. A decade of complex implementations, prebuilt solutions & enhancement extensions for EBS Industry Expertise: Industrial manufacturing, Distribution, Retail, Fresh Produce, Semiconductor, Medical Devices, Pharma, Hi-Tech

5 About inyxa

6 Project Approach Our Philosophy Transactions must fit Physical Work / Material Movement End-to-End Solution Don t let the software/system get in your way Man to Machine Relationship Business Justifications Fewer scans faster information capture Capture of additional or different information Integration with other systems Better fit for industry specific processes Integration with Automated equipment

7 Agenda About Inyxa Supply Chain Trends Case Studies Conclusions

8 Market Direction 2017 Supply Chain Management Top-tier organizations have recognized that SCM can be the single greatest unifying factor across all (business) functions. It increases revenue, extends asset life, protects brand and reputation, increases productivity, reduces costs, and manages risks. Supply Chain Management: Getting a Seat at the Table by Stephen C. Rogers and Robert Porter Lynch, 2015 The Amazon Effect Many supply chains are simply not set up to respond to broader organizational objectives that often call for speed and convenience in a cost-effective manner.

9 2017 Automation Study Landscape 2017 Peerless Research Group Study Respondents - Operations in food & beverage, automotive, chemicals, pharma, and industrial machinery - $872 Million Average Annual Revenue

10 Agenda About Inyxa Supply Chain Trends Case Studies Conclusions

11 Case Study A South American Manufacturer and Distributor of Fresh and Frozen Consumer Foods A Journey to Automation

12 Automation at a CPG Customer Nationally, the #2 producer of fresh and frozen foods in Chilean market In business for over 100 years 4 Production Plants, 13 distribution centers 500 unique items 10,000 Sales Orders & 300 Truck Loads per day 40,000 unique customers with direct delivery Delivery is primarily LTL & TL in nature. 90% mixed pallets. E-Business Suite

13 Two Phase Solution Phase Productivity Improvements Variable weight picking not in the out-of-the-box WMS solution Enhanced rules for bulk picking Improvements in shipping efficiencies truck loading All through mobile form extensions no change to underlying Oracle code base Phase 2 Highlights 2016 New Automated Distribution Center Integrate picking process with Material Handling System Pallet building logic to simplify packing process

14 Phase 1: Software Enhancements

15 Inbound Pallets Phase 2: Distribution Center Material Movement Packing Packing Case Picking Shipping Packing Full Pallet Picking Forklift Put-away ASRS Picking ASRS Putaway

16 Distribution Center Material Movement 4. Sorter diverts product to Packing Lanes 7. Truck Load & Ship Confirm 3. Pick & Pass picking for Variable Wt. Items 6. Packing Solution for Pallet Building 2. Bulk Picking for Standard Wt. Items 5. Automated Storage Retrieval (ASRS) Picking for Frozen Product 1. Inbound Dock. Full Pallet Replenishment

17 Integration with Pallet ASRS Put-away integration with Pallet ASRS. Picking integration, to request pallet from Pallet ASRS. In high volume ASRS, order of dispensing may be different from order of request. Picking form that processes warehouse picking task based on pallet that was dispensed by ASRS. Pallet Storage / Retrieval

18 Outbound Wave Release Workbench In a single application, allows for: Users to easily manage pick, pack, ship Visibility into wave, items, staging lanes, and dock doors Ability to manage use of available lanes to optimize picks. Increased flexibility to external factors End to End tracking of material. From release in Oracle, through packing, truck loading & shipping. Outbound Waves Selecting material in Wave ASRS / Sortation Release Status of cases dispensed Or sorted Dock Door Status

19 Integration with Conveyors & Sortation Orders may arrive from ASRS & Sortation out of sequence. Packer takes cases from end of ASRS Line and associates them with a pallet. Quickly create the pallet entity, based on the pallet number and associate every case by scanning the label. Multiple mobile scanners and guns tested and used; personal preference

20 Metrics New Distribution Center with WMS/Conveyor: 24 tons per hour (vs. 18 tons in old DC) 33% efficiency increase 2 Work shifts with 34 pickers by shift. 68 pickers in total (vs. 2 ½ shifts with 85 pickers) Reduced Labor Costs by 20% Oracle Success Story - Featured at Oracle Open World Currently showcased as a Case Study on Oracle s web site

21 Case Study Automation in Retail High volume catalog & internet retailer 5 million packages a year and growing fast Next Day Delivery Demands Significant investment in automated conveyers A legacy WMS that was custom built and fit like a glove Over 1 Million SKU s

22 Case Study: Automation in Retail We did not start the discussion with what the Oracle WMS system can do, instead we started with what the ideal process for the customer should be. Warehouse on legacy system was fairly efficient since sorting / conveyer equipment purchased over the years was optimized with legacy system. Goal was to build on the strengths of the legacy system while addressing known limitations. Even though several extensions were built, with over 30,000 lines of code written, no customizations were done to Oracle code, making the overall solution upgradeable & patchable. A dozen Mobile User Interfaces to enable efficient integration with conveyer, sorting equipment & retail centric processes. ADF Web based portal that handles the very high reverse logistics volume. Integration with Parcel Manifesting, Dropship & other marketing systems. Parcel Manifesting Drop Ship Aggregator

23 EBS WMS Process Improvements EBS WMS Not a Match Not one of these transactions below in , even with personalization/configuration or minor code changes Receiving - Putaway Pick Release / Wave Creation Picking, Packing & Shipping EBS WMS still the best Match Other systems like Red Prairie, Manhattan would all also require customization. EBS provided the most open & integrated platform with availability of a large number of Public APIs for every task. EBS was already chosen as the primary Financial, Order to Cash & Procure to Pay system.

24 Examples Receiving Out of the Box vs. Custom Screen Cross dock indicator for full PO If more than x% of items on PO need to be cross docked Ability to see last 3 items scanned. REDO / UNDO capability if receiver loses their place Continuous loop to scan items. Scanning *DONE* or entering a Key combination exits loop.

25 Picking & Consolidating Parcels High Speed Zone Picking 2. Single item to delivery, placed directly on conveyer 3. Multiple items per delivery, gets a routing label then placed on conveyor.

26 Labeling, Packaging & Parcel Manifesting Rate Shopping with: Print & Apply & Box Closing Print & Apply with Automated Packaging Equipment Labeling Vendors Rate shopping Manifesting vendors

27 Results Shipped nearly 40K units within 24 hours of Go- Live 6 months later: Completed busiest shopping season in company history Shipped over 2 million packages Increased efficiency of general merchandise picking Cut down on shipping costs Set up for future growth with fully integrated system This is probably the smoothest transition of a major IT system that I have ever seen. President/CEO of Retailer

28 Case Study: Automation in Farm Produce A large packer of organic fruit in the Northwest. Packing, Processing, Storage & Shipping of Farm Produce at a massive scale. Ships over a hundred truck loads a day all over the US. Project involved Integration of ERP order fulfillment processes with a Large Automated Pallet Storage and Retrieval System. Key Project Highlights Unified Portal for tracking shipments through ERP Order Fulfillment, Transportation Planning & Warehouse Control Systems. Real-Time REST based integration with Material Handing Systems. Mobile & Forklift Mounted user interface for Receiving, Picking, Shipping, Pallet Consolidations etc.

29 Integrated Operations Dashboard Wave Planning Truck Appointments. Yard Check-in / Check Out Labor Management Dock Door / Yard

30 Results Immediate & significant improvement in existing processes through rapid roll-out of mobile screens optimized for customer transactions. Better control & more reactive operations through tools for unified operational control. Real-Time visibility for executives into shipment status, truck wait times & labor productivity. Collaborative Implementation approach with customer business & IT team for easier change management.

31 Extended forms work Seamlessly across clients Client is Forklift Mounted Legacy Device Client is Windows 10 Tablet ios / Android Clients Hand held device

32 3 rd Party Partners A Range of Solutions for Oracle WMS Faster & More Accurate Functional Area Business Problem Implementation Type Shipping Sorter assisted picking Mobile MSCA / WMS Shipping Shipping Receiving System Directed Pallet Building & Inner box selection. System Directed Packing, Pack Verification & Labeling integration Visibility into trucks in Yard & tracking of truck unload / load times. Mobile + EBS Extension Mobile MSCA / WMS ADF Workbench Receiving High volume small parts receiving Mobile MSCA / WMS Receiving Remote Supplier Labeling Standalone Application Returns High Volume Returns Processing ADF Workbench Purchasing Purchasing for Style Color SKU ADF Workbench Inventory Control Retail Cycle Count & rapid inventory pack / move Mobile MSCA / WMS Manufacturing Production Data Capture for Oracle Quality Standalone Application Business Intelligence Real Time Signage Standalone Application Labeling Device Management Devices

33 Warehouse Automation Integration of Sortation Equipment with Wave & Pick Process Mobile Extensions for efficient pick / pack & ship with sorter and/or conveyer infrastructure. Integration expertise with ASRS, Carousel, Scale and other Warehouse Control equipment. Enhanced Bulk Picking solutions for full pallet picks across orders. Worked with various systems & hardware partners Sortation Control between WMS & Intelligrated Pick to Sorter & Pack from Sorter forms

34 AGENDA About Inyxa Supply Chain Trends Case Studies Conclusions

35 Conclusions When looking to add automation to your SCM strategy, architecting a comprehensive end-to-end Supply Chain Solution is critical. It is important to prevent Oracle WMS from getting in the way of Automation equipment. With software automation, a screen that does not fit on day one, will not fit on go-live. Intelligent integrations with external systems are key to a successful project If you already have EBS, integrating external automation into EBS, can produce a system that has the same or better efficiencies, is more cost effective, and is more integrated to your business when compared to anything on the market

36 QUESTIONS? Jamie Silverman