Welcome to Session 129 Material Handling in Manufacturing and Distribution Optimized Intelligence

Transcription

1 Welcome to Session 129 Material Handling in Manufacturing and Distribution Optimized Intelligence Presented by: Sponsored by: Mark Lewis Director, Value Chain Execution Oracle Norman Saenz Senior VP & Principal TranSystems Justin Anders Business Analyst - Golfsmith International 2012 Material Handling Industry. Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.

2 What Does Optimized Intelligence Mean? The idea for this session came from an article last June in Supply Chain Digest : Logistics New: Where Does the Intelligence Belong in Automated Material Handling Systems? "The WMS should have all the information it needs to make all the decisions, "The WCS should just take that decision about where a carton goes, deliver it, and then tell us that it's there. With this approach, you avoid a lot of potential issues about where the logic for something really lies. - SCD, June 28,

3 Material Handling as Part of a Broader Whole Procurement Manufacturing Order Management Warehouse System 1 Warehouse System 2 Warehouse System N RF /Automation RF /Automation RF /Automation Integration and Operation Complexity, Localized Solutions 3

4 Integrated Optimization Think in Terms of Solution Capabilities as a single whole Order Order Management Transportation Management Order Capture Solution(s) Warehouse Management Integrated Business Intelligence Fleet Mgmt Global Trade Automation & RFID Labor Quality Production Service Integrated via a single Architecture Transaction Integration Process Synchronization Converged Optimization Analytics 4

5 Warehouse Management Solution Solution Part I RMAs Purchases Transfers RTVs Orders Transfers Receive Ship Global Inspect RF Support Visibility Pack Cross Dock Putaway Directed Pick Seamless Integration Cost Assemble WIP Issues Label Tailorable Rules & Workflow Process Transfer Replenish Count Move Transportation Purchasing Manufacturing Fulfillment 5

6 Material Handling Control System Solution Part II MATERIAL HANDLING EQUIPMEN TS WAREHOUSE CONTROL SYSTEM (WCS) Configuration Layer Device Configuration Directive Configuration Process Layer BACKEND WMS/ERP WMS Device Definition Process Directives Monitor Equipments Transport Layer Business Event Association Carousel Bridge Custom MHE Integration Device Simulator Process XML/CSV File Pick and Putaway Tasks 6

7 This Discussion has been going on for years Is There a Best Answer? - From WMS vs. WCS, HK Systems,

8 WMS, WCS or BOTH? Recent advances in WCS technology are enabling these systems to perform some of the fulfillment processes traditionally reserved for a WMS. Similarly, many WMS now provide interfaces to manage automated handling equipment a task traditionally managed by a WCS. What should you be looking at to make the right decision for your operations? 8

9 TRADITIONAL HIERARCHY ENTERPRISE SYSTEM Customers Suppliers Carriers ADMIN/FINANCE Purchasing Order Management MANUFACTURING MRP MES PLANNING Demand Mgmt APS Customers Suppliers Carriers EDI / WEB E n t e r p r i s e N e t w o r k EDI / WEB LABOR MANAGEMENT YARD MANAGEMENT WMS TMS W i r e l e s s o r L o c a l A r e a N e t w o r k Data Entry Devices Material Handling Device Control Receiving Storage Inventory Mgmt Order Plan/ Release Picking Replen Staging Loading Shipping Task Mgmt 9

10 1990 s: WCS EMERGE Customers Suppliers Carriers ENTERPRISE SYSTEM Customers Suppliers Carriers EDI / WEB LABOR MANAGEMENT E n t e r p r i s e N e t w o r k WMS EDI / WEB W i r e l e s s o r L o c a l A r e a N e t w o r k Data Entry Devices Conventional Material Handling WCS Automated Material Handling Receiving Storage Inventory Mgmt Order Plan/ Release Picking Replen Staging Loading Shipping Task Mgmt 10

11 WAREHOUSE CONTROL SYSTEMS 1990 s: PLC s for material handling storage & conveyor equipment control & diagnostics to speed item flow from receipt to order release, picking & shipment. 11

12 WAREHOUSE CONTROL SYSTEMS Today: PC s & expanded functionality including order analysis, release & status monitoring, AIDC management & a host of additional equipment interfaces coupled with line & activity balancing. 12

13 THE LINES ARE BLURRING 13

14 FINAL THOUGHTS If both make sense for your requirements, develop detailed specifications that define which system controls which functions, data synchronization processes and timing, exception handling AND, who is accountable for overall system performance. Avoid customization it adds cost, lengthens implementation time & increases risk. WMS and WCS have complementary solution sets that need to work together. Instead of looking at this as a battle between WMS & WCS, solutions providers need to look at finding the right balance of both that results in the best answer for the customer s operational needs. 14

15 Golfsmith International, Inc. Founded in 1967 Largest golf-specialty retailer in the world which includes 82 retail locations, a UK wholesale-distribution center, catalogs and a website 250,000 square foot shipping and distribution facility 15

16 Pre-Implementation Systems Existing ERP Application implemented in 1999 Warehouse Management and MHE Custom WMS developed out of ERP application Conveyor system in direct-to-consumer shipping, controlled by a custom WCS installed circa 1997 o Tote married to order at induction o Tote diverted to picking aisle o Paper-based pick Pick-to-Light system in retail shipping - installed circa 1998 o Pick by zone Scanners used only in receiving and 2 retail-replenishment subinventories implemented in

17 ERP/WMS/WCS Change Process Golfsmith decided to upgrade our ERP to current version Do we use ERP WMS, or another 3 rd party vendor? Points of Considerations on choosing a WMS: Ease of implementation System maintenance and upkeep Does it fulfill our process requirements? Does it help improve our processes? Cost savings and ROI Labor Management and Resource Planning Room to expand? 17

18 MHE Issues & Considerations Direct Conveyor Control System Server issues Written in Visual Basic Lack of knowledge in coding ability to make changes Pick-To-Light System Hardware failures Replacement parts obsolete Server issues Questions in efficiency and cost savings with our current processes 18

19 MHE Changes Pick-to-Light Decided to remove the existing PTL system Now pick via wireless handheld using ERP WMS (Note: all picking in the DC via mobile devices) Benefits Pick times Material costs Conveyor control system Decided to upgrade our existing 3 rd party control system ERP WCS would work, but required customizations to fit current conveyor and pulling methodology. Required customizations were not supported in base WCS. ( Note: can provide technical specifics if needed. Please ask in Q/A due to time considerations. System was re-coded in.net Improved interfaces for induction and control Migrated to improved hardware 19

20 Timeline ERP implementation process began in May Went live with latest ERP version on October 2, 2011 (16 months) Warehouse implementation could have been rolled out in 12 months. This includes ERP WMS and all supporting systems and hardware - WMS, mobile, labels, scanners, printers, etc. 20

21 Results Entire shipping and distribution now integrated with ERP WMS. All picking performed with handheld scanners. Allows us to track performance and labor metrics. Decrease in mis-pulls and missing items Material cost savings Task management Future Goals Voice-picking Improved cross-docking Warehouse cycle-counting Improved labor management proactive, rather than reactive. 21

22 Questions? 22

23 For More Information: Speaker: Visit MODEX 2012 Booth # Material Handling Industry. Copyright claimed as to audiovisual works of seminar sessions and sound recordings of seminar sessions. All rights reserved.