Making Flawless Fulfillment a Reality with Real-Time Mobility

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1 Making Flawless Fulfillment a Reality with Real-Time Mobility Sponsored by: Presented by: Mark Wheeler Director, Supply Chain Solutions 2013 MHI Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 INFORMATION & CHANGE IS EVERYWHERE PAGE 2

3 IS THE REAL TIME SUPPLY CHAIN ACHIEVABLE? Suppliers Manufacturers Wholesale Distributors Retailers Data convergence Data convergence Customers Contract Manufacturers Virtual Manufacturers Virtual Distributors Information Flows Goods Flow Logistics Providers

4 IS YOUR WAREHOUSE ENVIRONMENT READY PAGE 4

5 CONSIDER THE CHANGING ENVIRONMENT 15 % - 40 % of clothing bought online is now returned by consumers. This creates a major challenge in warehouses and distribution centers for returns management. SOURCE: IMRG, FEBRUARY % JONES Of supply chain managers cite transport or storage infrastructure constraints as one of their biggest challenges over the next five years. LANG LASALLE, JUNE % Manufacturing companies are considering re-shoring their production operations, with 14% definitely planning to do so. SOURCE: MIT/WSJ, JULY 12 #1 technology priority FOR WHOLESALERS. #2 technology priority FOR MANUFACTURERS. Through 2015, mobility is the: GARTNER, SEPTEMBER 12

6 WHAT IS REQUIRED TO CREATE FLAWLESS FULFILLMENT INTERNET RECEIVING PUT-AWAY STORAGE PICKING PACKING LOADING & SHIPPING TRUSTED MOBILITY ACROSS ENTIRE WAREHOUSE ENVIRONMENT, AND BEYOND

7 MANUFACTURING HAS NEW NEEDS

8 PLANT FLOOR LINKAGES IN THE SUPPLY CHAIN Warehouse & Materials Management Mobile Operator Plant Communications Asset & Facilities Management Quality & Traceability Field Operations

9 MOBILE PLANT FLOOR PRIMARY USE CASES MAINTENANCE Shortage of skilled techs Require flexibility to respond to changing priorities Must have visibility to automation system for troubleshooting production equipment Must have efficient work order management system OPERATIONS Responsible for more geography Must maintain visibility to process status/alarms/alerts Faster reaction = less downtime New HMI workstations are expensive & labor intensive

10 MOBILE PLANT FLOOR QUALITY ASSURANCE Timely and accurate data capture and information delivery reduces scrap & protects brand Sample Collection & Tracking Inspections Efficiently performing trace and trace of batch ingredients or assembly components Error-Proofing Lot Tracking, As Built Documentation, Item Serialization PAGE 10

11 RETAIL DRIVES NEW DEMANDS

12 OMNI-CHANNEL RETAIL SCENARIOS PAGE 12

13 OMNI-CHANNEL TRENDS Source: Motorola Solutions Retail Vision Survey, May 2012 PAGE 13

14 OMNI-CHANNEL FULFILLMENT FOUNDATIONS Perpetual inventory through to the shelf Home delivery Increased store-level inventory accuracy Receiving Overstock Management Floor Inventory Real-time task management in-store: Rapid response to consumer need: - Inventory checks - Leverage physical presence to close a sale PAGE 14

15 CROSS-DOCK OPTIMIZATION Standard bar-coded labels on all cases / pieces ASN s on all incoming shipments Constant visibility to inbound shipment status feeds: Inbound dock scheduling Cross-dock sort labor scheduling Inventory allocation algorithms Outbound transportation scheduling Yard management assigns optimum dock door based on shipment contents Hands-free mobility throughout the sort: Reallocate labor where needed in real-time Build accuracy into the sort through scanning PAGE 15

16 HARDWARE TECHNOLOGY ADVANCES

17 HARDWARE TECHNOLOGY TRENDS MOBILE DEVICES DESIGNED FOR HARSH WAREHOUSE, DISTRIBUTION & MANUFACTURING ENVIRONMENTS ARE STILL DOMINANT AND PROVEN TO BE RELIABLE AND FLEXIBLE. HANDHELDS VEHICLE MOUNTS SCANNERS PAGE 17

18 NEW INNOVATIONS More capable devices and networks Smaller: New categories of mobile devices are now possible to connect entire workforces Digital: Combined voice and data applications, with movement towards IP for interoperability Touch-Centric: Expanding capabilities data input and rich visual rendering in touch-centric devices Wearable: Superior ergonomics drive productivity, accuracy and data capture for traceability Modular: Hardware serving your micro-niche Browser-Driven: Flexible OS and UI capabilities RFID-Enabled: Passive data collection for visibility Service-Based: New procurement and pricing models ease burden and mitigate IT risks PAGE 18

19 WEARABLE SMART BADGES Task Management: In Store Warehouse Plant Voice Communications Basic barcode scanning NEW FORM FACTORS AND PRICE POINTS FOR CONNECTING EVERYONE

20 DIGITAL TWO- WAY RADIOS Migrate from legacy technology, add interoperability with WiFi devices Comply with FCC Narrowbanding requirements Eliminate Distracting Overhead Paging Digital = better voice, better range, and new applications (SMS, alarms/alerts) PRESERVE BUSINESS COMMUNICATIONS, ENHANCE VALUE AND IMPACT WITH DIGITAL

21 TOUCH CENTRIC DEVICES Manager s Assistant Mobilize fixed workstations Receiving Inventory Control Manager Mobility BUILT FOR RUGGED ENVIRONMENTS Laptops on carts

22 HANDS-FREE WEARABLE DEVICES Hands Free Picking Voice Directed Picking ADOPTION IS EXPANDING & GROWING Shipping & Receiving Field Service

23 SURVEY OF CURRENT VOICE DIRECTED CUSTOMERS 76% Plan to Look at a New Manufacturer Desire to move to multi-modal Frustration with expensive proprietary accessories Belief that lower-cost options are now available 90% Plan to Look at New Software 50% want easier voice-wms coordination 42% accumulate changes instead of implementing them 37% strive to avoid making changes altogether 26% believe the cost of trivial changes is too high ADAPT MORE EASILY AND QUICKLY TO NEW PAGE 23 SUPPLY CHAIN DEMANDS

24 MODULAR DESIGNS Better Manage Risk Enhance Flexibility to Respond to Customer Demand Streamline & Automate Processes REMAINING RELEVANT IN THE FACE OF CHANGE

25 EVOLUTION FROM TELNET TO HTML5 Telnet Mobile Browser Rich Browser Batch and Telnet Wireless and Telnet Wireless and Web Rich Browser based Inside 4-walls WLAN Inside 4-walls Outside 4-Walls Cradle/Sync WLAN WLAN WWAN/WLAN DOS Win CE Win Mobile WEHH/Android Telnet / Native Telnet / Native HTML /.NET HTML5 Text UI Graphics UI Web UI Rich Web UI

26 OPTIONS TO SHIFT FROM CAPEX TO OPEX 3PLs 3PIT PAGE 26

27 RFID ADOPTION

28 TECHNOLOGY UPDATE SUPPLY CHAIN VISIBILITY BARCODE INTERMITTENT SCANNING RETAIL SUPPLY CHAIN SERVICE BUREAU / IN PLANT PRINTING SYSTEMS PICK / PACK RE-PACK MARKDOWN POS RETURNS

29 TECHNOLOGY UPDATE SUPPLY CHAIN VISIBILITY RFID 100% SCAN RETAIL SUPPLY CHAIN SERVICE BUREAU / IN PLANT PRINTING SYSTEMS PICK / PACK SHIP VALIDATION RECEIPT PACK SHIP VERIFICATION RECEIPT INVENTORY MARKDOWN POS EXIT DOORS RETURNS

30 NORTH AMERICAN RFID TRENDS DEPLOYMENTS ARE SCALABLE Technology Works and technology is easy to deploy Vertical Product Pull-through: MSP, Scanning TAG PRICES ARE COMING DOWN Last year this time average price was 0.25 now 0.12 Integration with standard Hang Tag No Change in Business Practice for Supplier MAJOR RETAILERS ARE DEPLOYING Leverage suppliers ROIs 9 month or less payback and Suppliers are benefitting Documented results from Brand owners " " Retailer has quietly rolled out RFID in three categories at all 1100 of its US stores We are leveraging the basic premise that if you know where the merchandise is, you can get more sales. If you are able to take inventory every night, or a subset of inventory every night, there is a pretty high payback. Dan Smith, CIO " "

31 * ABI, % COMPOUND ANNUAL GROWTH RATE THROUGH 2016 ACROSS US & EUROPEAN MARKETS. * VDC Research AutoID & Data Collection: Market Forecast, May 2011

32 EXAMPLE ADOPTORS 900 STORES DEPLOYED shoe compliancy, expansion STORES DEPLOYED 3 departments, Mobile PoS SHOE COMPLIANCY expanding to HBC, adding luggage SHOE COMPLIANCY jean inventory accuracy. EAS MAJOR DEPARTMENT STORE MAJOR DEPARTMENT STORE 3600 STORES FROM 8% TO 1.5% deployed men s, boy s, automotive Able to reduce out of stocks

33 For More Information: Speaker: Mark Wheeler Home Page: Visit ProMat 2013 Booth # MHI Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.