Warehouse Management System (WMS) Is There a Business Case?

Warehouse Management System (WMS) Is There a Business Case?

Utilities Warehouse Management Current State The typical Exelon Utility warehouse is a generally high activity hub with 5 to 10 thousand unique stocked commodities Most of these warehouses have been in use for decades with no significant upgrades While like commodities are generally stored together, no other specific strategies for optimizing warehouse activities have been implemented Due to space constraints, many materials are stored in multiple locations ( bins ) which increases the potential for pick and put away errors ERP (Asset Suite) is the only tool used to manage warehouse operations Can a Warehouse Management System Improve Operational Performance/Efficiency? 1

Preliminary Tangible Benefits The largest anticipated WMS efficiency gains include: Optimization of the picking and put away processes Streamlining the Receiving/put away process (Including ASNs) Minor Material Maintenance at Retail sites Space Utilization and optimization of our warehouses Transportation Management Web Tool for customers to see order and delivery progress Cycle counting Reduction of Overtime Other Opportunities Eliminate calls from buyers for delayed receivers Warehouse gains for not having to research and locate missing materials Pole hauling route efficiencies 2

New and Enhanced Capabilities 3 New Capabilities Directed picking and put away Utilizes Universal Product Codes instead of printing our own each time Directed Bypass due to Priority shift or Obstacle Pick Summaries displayed on the screen Visual Validation of the material (photo on screen) Optimizes inventory based on size, weight and frequency of pick Verifies validity of codeblock on the fly during all receiving, picking and return processes Shipping and remote delivery confirmation Assigning work to an Individual (By Location) or Group Asset Tracking for refurbishments, Tool Repair Process, reels vs. partial reels and compressed gas cylinders Wave or Batch picking (Job Order) Reallocation of pick in the event of picker reassignment Stock rotation management Cartonization support Management Dashboards and Real Time Reporting Enhanced Capabilities Ad Hoc Cycle Counting Zero-Count (Empty Bin) on the fly counts Variance Resolution Foot or forklift picking Aging Work Force compliance Visibility of full order on device Kit replenishment Order staging Warehouse transfers Multi-job picking Shelf Life tracking ZONE utilization Hazardous material management Multiple Cat ID s for a single bin location Shipment error management OSD&Ds Receipt Inspection Process Cross Docking Return Management Site inspections and Validations

Efficiency / Redirected Labor Opportunities Efficiency / Redirected Labor Opportunities Inbound Receiving Efficiency / Accuracy Putaway Efficiency Storage Space Utilization Outbound SWM s (allocation / planning) Efficiency Picking Efficiency Staging / Loading Efficiency Delivery Planning Efficiency Other Cycle Counting Non-stock / retail job efficiency Minor inventory efficiency Partial reel efficiency Inbound Visibility / Soft Savings Opportunities Backorder expediting Non-stock staging Storage Non-stock (issued) physical inventory Retail job (issued) physical inventory Storm kits (issued) physical inventory Creation, tracking, replenishments Partial / empty reel management Outbound Loading non-stock, retail job physical inventory Delivery Proof of delivery Pickups (Credits / Returns) 4

Optimization Warehouse Optimization WMS learns each warehouse, and reorganizes the inventory based on frequency of picks and available storage to help minimize picking distance (foot or Lift Traffic) HOWEVER. To do this, we would need to include Material Dimensions and Weights 5

Other Area Opportunities Tool Repair Status, pickups, workloads Returns / Credits Improved visibility and processing Inspection (transformers) Serial tracking, life cycle tracking 6

Bottom Line - Costs and Return on Investment (ROI) It is clear that a WMS has many potential benefits, but there are also significant costs associated with implementation Complete reorganization & re-binning of warehouses labor and down-time costs Software licensing and maintenance costs ERP integration is required to maximize functionality several million dollars Training, change management and user adoption ROI Improved efficiencies are the main driver of saving realistically can only be realized though a reduction in workforce Reducing workforce is typically not an viable (or short term) option, especially with bargaining unit staffing So where else can ROI be achieved? Interactive Discussion 7 WMS 3-27-17 Status Update