Oracle Warehouse Management (WMS) and RFID

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<Insert Picture Here> Oracle Warehouse Management (WMS) and RFID Integrations, Enhancements and an Overview Aditya Agarkar Director, Product Strategy

Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

Agenda WMS Overview WMS Features WMS Direction Q&A <Insert Picture Here>

Challenges in Materials Management What Really Matters? Accurate Promise Date Low Lead Times Perfect Fulfillment Optimal Processes Flexible Operations Accurate Shipment Real Time Visibility Automated Transactions Efficient Execution On Time Shipment Accurate Inventory Optimized Storage Low Headcount Logistics Efficiency Optimized Freight Low Inventory Low Working Capital Infrequent Counts Less Returns Less Write-Offs

Material Management Products WMS for complex material management needs High Product / Order Complexity Low existing Choice Choice RF / Barcode Only MSCA Improve accuracy and reduce latency of existing transactions Desktop System - Inventory Record transactions and track balances Automated Facilities Sensors and Devices WCS and RFID Automate physical inventory handling Warehouse Management WMS Implement a true execution system using system directed tasks and task management Small Transaction Velocity / Volume Large

Who needs WMS? Low High Number of SKUs and bins Inventory MSCA WMS Inventory Turns Inventory MSCA WMS Transaction Volume Inventory MSCA WMS Warehouse Capital Cost Inventory MSCA WMS Inventory Carrying Cost Inventory MSCA WMS Pressure on Operating Margin Inventory MSCA WMS Cost of Imperfect Order Fulfillment Inventory MSCA WMS Cost of Non- Compliance Inventory MSCA WMS Labor Cost Inventory MSCA WMS

WMS Value Proposition Features for operational efficiency, perfection and flexibility Efficiency Perfection Do More with less of: 1. Labor and Equipment 2. Warehouse Space 3. Onhand Inventory Balance cost and service in a dynamic logistics environment Manage changing environment 1. Dynamic business situation 2. Technology Innovation 3. Changing standards Flexibility Perfect Order Fulfillment 1. Accurate Promise Date 2. On Time Shipment 3. Correct Item and Quantity Shipped

Built-In and Integrated Built-in, Integrated and highly efficient and flexible WMS for complex needs RMAs Purchases Transfers RTVs Orders Transfers Receive RF Support RF Support Global Visibility Global Visibility Ship Inspect Pack Seamless Integration Directed Putaway LPN s Directed Pick Assemble Cost WIP Issues Label Tailorable Rules & Workflow Process Transfer Replenish Count Move Plan Procure Manufacture Fulfill Move

Mobile Transactions Middleware to Support Device Independent Mobile Transactions Transactions at Point of Use on Mobile Devices equipped with Barcode Scanners Now also available in GUI Multi-Lingual and Device Independent RF Base Station LAN or WAN Mobile Transaction Server Application / Data Base Mobile Device Telnet Over TCP/IP SQL Net

Directed Tasks Rule Based Tasks to Direct Workers Pick Wave Task Queue Create & Allocate Task Split Merge Sort Dispatch Tasks To RF Devices Support Multiple Picking Methodologies Match Skills and Equipment to Tasks Perform Task Sequencing and Interleaving Create Paperless, Streamlined Processes Align Pick Plan with Business Mix Reduce Safety Issues and Training Costs Significantly Reduce Travel Time

Warehouse Management System Rapid ramp up and Continued Investment in the product Efficiency and Automation Increasing Benefits Integration and Compliance RF Transactions WMS 11.5.9 and Business Rules Support for Bar Code WMS 11.5.8 Standards Directed Rules Tasks Workbench Manufacturing Rules WMS 1.0 picks and Simulator RF Support completions Labeling Rules Engine enhancements LPN UCC Standard Lot/Serials Support WMS 11.5.10 Advanced Task Framework Packing Workbench RFID Compliance MHE Integration Graphical User Interface (GUI) for Mobile WMS R12 WMS for process industries Planned crossdocking Labor Management Locator Check Digits Flexible label field definition Task Management Automation Release 12.2 Release 12.1 2001 Current

WMS Value Proposition Sample Features for Core Value Proposition Perfection Efficiency Flexibility Comprehensive Support for Pick Methods Warehouse Activity Planning. Warehouse Automation, Voice, Sensors and RFID

Comprehensive Transaction Support Wide range of pick methods for your warehousing needs Pick Methods Order Picking Pick by Label Current Zone Picking + Pick and Pass + Cluster Pick / Batch Pick + Case Picking Pick to Pallet + Case Picking Pick to Belt + Bulk Picking Paper Picking Future

Order Pick Example: Following orders to be picked Order 1 Bin11 Bin21 Bin31 Bin41 Bin51 Bin61 Order 2 Warehouse operator will make two passes of the warehouse for each order Order should be large enough for equipment capacity to be utilized fully Bin12 Bin13 Bin22 Bin23 Bin42 Bin32 Bin43 Bin33 Staging Bin52 Bin53 Bin62 Bin63 Order 1 Pick Order 2 Pick Order 1 Pick Path Order 2 Pick Path

Label Pick Cartonization - Determine a carton size and generate an LPN label at release Warehouse operator will scan the LPN label and WMS will dispatch tasks for the label Process Alternatives: Pick to Tote: Perform Packing into final shipping container at pack station Pick and Pack: Possible to eliminate downstream packing operation by picking into a final shipping carton or container Bin31 Bin21 Bin11 Bin32 Bin22 Bin12 Bin33 Bin23 Bin13 Order 2 Pick Staging Bin41 Bin42 Bin43 Order 2 LPN

Zone Pick Example: Each picker is assigned a pick zone Zone 1 Zone 2 Warehouse operator will pick from their zone and pass to the picker in another zone Parallel picks across zones Possible to reduce order pick time Requires order consolidation after picks are complete Pick profile may be different e.g. Pallet pick in Zone 1 and case pick in Zone 2 Enhancements to ensure that separate Carton labels can be generated for each zone Bin11 Bin12 Bin13 Zone 1 Zone 2 Bin21 Bin22 Bin23 Bin51 Bin41 Bin31 Bin52 Bin42 Bin32 Bin53 Bin43 Bin33 Consolidate Staging Zone 1 Pick Path Zone 2 Pick Path Bin61 Bin62 Bin63

Pick and Pass Example: Each picker is assigned a pick zone Zone 1 Zone 2 Warehouse operator will pick from their zone and pass to the picker in another zone Sequential picks across zones Possible to reduce travel time Order consolidated as picks progress All pick zones must use similar pick profile e.g. cant have pallet pick in Zone 1 and case pick in Zone 2 Cartonization is needed Staging Bin41 Bin42 Bin43 Bin21 Bin22 Bin23 Bin31 Bin32 Bin33 Bin11 Bin12 Bin13 Zone 1 Zone 2 Enhancements to ensure that single carton labels is generated for all zones in the pick path Zone 1 Picks Zone 2 Picks

Cluster Pick Example: Following orders to be picked Order 1 Order 2 Warehouse operator will make one passes of the warehouse and pick both orders Each Order should be less than equipment capacity Cluster size set for optimum equipment capacity utilization Bin11 Bin12 Bin13 Bin21 Bin22 Bin23 Bin31 Bin32 Bin33 Bin41 Bin42 Bin43 Bin51 Bin52 Bin53 Bin61 Bin62 Bin63 Enhancements to Perform Cluster Picks using Cartonized LPNs Staging Order 1 Pick Order 2 Pick

Full Case Picks What is needed? Assign shipping labels to cases during picking Perform picking efficiently WMS Features: Create case level shipping labels (UCC-128) at order release Assign labels to operator at the start of picking Perform case picks by scanning LPN or UCC-128 barcode (SSCC-18) Options: Load cases to a pallet Load cases to a conveyor Enhancement to perform picks by scanning case labels

Warehouse Planning Deliver compelling value to address complex warehouse needs Planning Area Replenishment to Forward Pick Area Warehouse Activity Planning and Order Release Slotting Current + + Future

Forward Pick Replenishment Push Replenishment for irregular item demand Replenish ahead of order release to improve pick productivity by fulfilling large number of small orders from a forward pick area optimized for picking Identify floating locators for high demand items 1. Replenish 2. Release 3. Fulfill Pallet Location Forward Pick Area Order 1 Qty 3 Order 2 Qty 2 Order 3 Qty 2

Forward Pick Replenishment Dynamic JIT Replenishment for regular item demand Dynamically replenish forward pick locations when demand is placed on forward pick area Dedicated or Floating locators in Forward Pick Area 1. Release 2. Replenish 3. Fulfill Pallet Location Replenishment Tasks Created Pick Tasks Created Forward Pick Area Order 1 Qty 3 Order 2 Qty 2 Order 3 Qty 2

Warehouse Activity Planning Wave Planning and Task Planning for on-time shipment and enhanced resource utilization 1. Select lines for Wave 4. Release Wave Wave Planning 5. Task Planning Pick, Pack & Ship 2. Analyze Wave fill rate 3. Forecast Labor needs 6. Monitor Wave Execution

Wave Planning Increase fill rate, improve resource utilization, support high volume Planning features to allow release of orders only for 100% fill rate Scheduling of order release based on labor capacity Task planning for optimized execution Single workbench to monitor warehouse activity Designed for throughput of more than 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000 Lines/hr

Automation, RFID/Sensors and Voice Deliver compelling value to address complex warehouse needs Planning Area Warehouse Automation Warehouse Control System Current + Voice + RFID and Sensor Driver Execution + Future

Seamless Integration to Devices Device Definition Define devices and associate with business events in WMS Device IP and Port information in WCS Construct Messages Vendor specific message structure dynamically constructed in WCS when a specific business event occurs in WMS Device Interface WCS carousel bridge runtime interface transmits request message and receives response message from device WMS Transactions WMS transactions are confirmed manually or automatically based on device response WMS Business Event WCS Device Request MHE WMS Transaction Device Response Devices

Voice Picking Streamlined Data Input Where Environment cold storage & other climates where typing & scanning is cumbersome Safety hazmat & other situations where manual handing of goods is required High Volume operations when scanning slows you down WMS and Voice Benefits No toggling between the system and the physical work No need to query a screen to get work units Less system training required

Proven ROI Success Rate comparable to RF & WMS implementations Source: Report - ARC Advisory Group, Speech Recognition for Warehouse Operations, Nov 2007.

How Do We Enable Voice? A solution based on choice Hybrid Solution Voice overlay on mobile applications User can speak, scan or type Task Queuing and Processing Tasks from WMS pushed via Warehouse Control System into Voice System Completely Automated

Hybrid Solutions 2 Mobile Server 4 WMS Apps / Database 3 1 5 1. System speaks the prompts & defaults 2. User speaks or scans the response

Voice Based Task Management Systems 1 2 3 WMS Apps / Database Warehouse Control System Voice Server 4 To Oracle, the inner workings of these voice systems is a black box. They control task queues, dispatch & execution

RFID Solution schematic SENSE & RESPOND DEVICES ORACLE Fusion Middleware ACCESS APPLICATIONS Mobile JDeveloper Portal ANALYZE RESPOND Business Intelligence Business Process Management Integration CAPTURE Partner Partner Solution Solution Sensor Edge Server Data Hubs MANAGE Security Enterprise Manager Other Applications

<Insert Picture Here> http://blogs.oracle.com/logistics