sces - mhi - the industry that makes supply chains work€¦ · ppt file · web view ·...

Supply Chain Execution Systems

Warehouse Management SystemsLecture Resource

Adapted with permission from presentations by John Hill, © 2002, 2003 John M. Hill, ESYNC

Supply Chain Execution Systems (SCES)

Manage inventory, space, material handling equipment, labor, and transportation resources in real time to assure timely, error-free fulfillment, delivery, and visibility of order status throughout the supply chain

Matching material and information flow

SCES Impact Areas Fulfillment Delivery Visibility Responsiveness

Fulfillment and Delivery Material handling and controls

Right condition AutoID and data collection

Right material Supply chain execution systems

Right time People

Necessary for all of the above

Responsiveness

The best decision making is executed on the basis of events as or before, not after, they occur

Responsive logistics systems provide discipline and control that is based not only upon plans and performance goals, but also upon the dynamics of actual operations

SCES Components

Warehouse and Labor Management Transportation Management Yard Management International Trade Logistics Supply Chain Visibility and Event Management

THE SYSTEM HIERARCHY ENTERPRISE SYSTEM

PLANNINGDemand Mgmt

APS

CustomersSuppliersCarriers

CustomersSuppliersCarriers

E n t e r p r i s e N e t w o r k

ADMIN/FINANCE

PurchasingOrder Management

EDI / WEB

EDI / WEB

Material Handling Device ControlData Entry Devices

L o c a l A r e a N e t w o r k

Task Mgmt

Order Process

Inventory Mgmt

Shipping Receiving Storage StagingLoading

PickingReplen

MANUFACTURING

MRPMES

WMSWMS LABOR LABOR

MANAGEMENTMANAGEMENT

YARDYARDMANAGEMENTMANAGEMENT

TMSTMS

Warehouse Management Systems

Manages warehouse inventory, space, equipment, and labor resources to direct the flow of materials and information from receiving and putaway to light assembly, order picking, value-added processing and shipment

WMS History 1975: First WMS installed at J. C. Penney. 1986: First WMS installation in “C” on a UNIX platform. 1990’s: Hundreds of new stock locator & WMS

systems; Windows NT platform emerges. 1995: MHIA WMS product section formed. 1999: First WMS company reaches annual revenues of

$100 million. 2000: Expanded suites with TMS & SCV. Today: User-configurability & scalability remain key

differentiators.

WMS Functions Receiving

Blind ASN/EDI Conventional or Automatic

Putaway Dedicated, Random or Hybrid Location Selection: System or Operator Put Confirmation

Picking and Shipping Pick by Order, Batch, Wave Pick Confirmation Shipping Check Lists Manifests, Bills of Lading

WMS Differentiators Order Planning &

Scheduling Unit of Measure

Conversion Location Management /

Slotting Inventory Allocation Shelf Life Monitoring Lot & Serial Number

Tracking

Cartonization Cycle Counting Replenishment &

Consolidation Task Assignment &

Monitoring Reverse Logistics Scalability & Configurability Upgrade Support

WMS Setup Product Files

Descriptions Dimensions Units of Measure Bills of Material Substitutions

Location Files Numbering / Sequencing Dimensions / Capacity

Equipment Files Employee Files

Employee Task Prioritization

Workload Management Equipment Profiles Material Profiles Location Profiles Operator / Equipment Matrices Operator / Task Priorities Labor Standards

Material Handling Interfaces Conveyor Sortation Palletizer AGVs Pick (Pack)-To-Light Carousel AS/RS

Systems Interfaces Purchasing Order Management MRP / MES Labor Standards / LMS Load Planning Freight Rating / TMS Slotting

Receiving

ASNs / Purchase Order Receiving Carrier Appointment Scheduling Pre-Tagged Receipts Blind (Unanticipated) Receipts Load Tagging/Labeling Quality Assurance Returns

CARRIER SCHEDULING

• StageStage• CrossdockCrossdock• QC MoveQC Move• PutawayPutaway

• (Print & Apply LP)(Print & Apply LP)• StageStage• CrossdockCrossdock• QC MoveQC Move• PutawayPutaway

RFDC

• Key-Enter Order Number, Key-Enter Order Number, Product ID, Quantity & Product ID, Quantity & ConditionCondition• (Pre-Printed License Plate)(Pre-Printed License Plate)

RFDC

• Operator Assigned to ReceivingOperator Assigned to Receiving• Bar Coded Pallet ID (Scan or Key-Enter)Bar Coded Pallet ID (Scan or Key-Enter)• (Verify Product, Quantity & Condition)(Verify Product, Quantity & Condition)

WMSWMS

Match LP to ASN Match LP to ASN oror Retrieve PO Retrieve PO Validate ReceiptValidate Receipt Resolve ExceptionsResolve Exceptions Check DemandCheck Demand Issue Task Issue Task Update Inventory RecordsUpdate Inventory Records

Receiving

HOLIDAYS 2000 Warehouse Warehouse Wasteland or Wasteland or Competitive Competitive

Edge?Edge?

Source: BizRate.com

eSales:$6 Billion

Returns:$900 Million

Reverse Logistics

Storage and Putaway Location Selection Override Location

Confirmation Crossdocking Relocation Consolidation

Check Demand for Check Demand for ProductProduct Issue Move TaskIssue Move Task

DestinationDestination• StorageStorage• CrossdockCrossdock• QualityQuality• ReturnsReturns• OtherOther

• Confirm DropConfirm Drop• Await Next TaskAwait Next Task

RFDC

• Move to Designated LocationMove to Designated Location• Scan Location Bar CodeScan Location Bar Code

• Operator Assigned to Putaway / MoveOperator Assigned to Putaway / Move• Scan License PlateScan License Plate

RFDC

Validate LocationValidate Location Resolve ExceptionsResolve Exceptions Issue Drop InstructionIssue Drop Instruction- - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - Update InventoryUpdate Inventory Issue Next TaskIssue Next Task

WMSWMS

Putaway and Move

Inventory Management

Lot, Date Code, and Serial Number Tracking Shelf-Life Monitoring and Rotation Catch Weighing Routine and Exception Cycle Counting Full Physicals

Replenishment

Forward Pick Locations Floating Forward Pick Replenishment Trigger Controls Demand Replenishment Batch Replenishment Reslotting

Pick Planning Host Download Format and Frequency Wave and Batch Planning Material Allocation Order / Shipment Release Changes and Cancellations

• Display Pick LocationDisplay Pick Location • Scan Item Bar Code/LPScan Item Bar Code/LP• Pick / Confirm QuantityPick / Confirm Quantity - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Await Next PickAwait Next Pick

RFDC

• Move to LocationMove to Location• Scan Location Bar CodeScan Location Bar Code

• Operator Assigned to PickingOperator Assigned to Picking• Ready for Next Pick TaskReady for Next Pick Task

RFDC

Validate LocationValidate Location Issue PickIssue Pick - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - Validate Item / QuantityValidate Item / Quantity Resolve ExceptionsResolve Exceptions Update InventoryUpdate Inventory - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - Issue Next PickIssue Next Pick

WMSWMS

Picking

Staging and Shipping Trailer Scheduling / Processing Staging Location Management Staged Load Confirmation Door / Truck Verification Shipping Labels Manifests / Bills of Lading Shipment Confirmation

WMS Cost BreakdownCOMPONENT % TOTAL COST

Computer 6

RFDC 24

Bar Code Label Applicators 9

Hardware Subtotal 39

WMS License 8

WMS Enhancements 10

Host Interface 6

Other Software Licenses 4

Software Subtotal 28

Location Labels 6

WMS Installation Services 21

Project Team Costs 6

Implementation Subtotal 33

WMS Benefits Potential Improvements in:

Inventory accuracy and turns Space utilization, stock

rotation Order, lot and serial number

tracking Backorder handling Crossdocking Resource planning and

scheduling Labor and equipment

productivity Performance measurement Customer service

Potential Reductions of: Damage/Shrinkage Lost stock Safety stock Search times and

deadheading Paperwork Human error Physical inventory taking Labor, equipment and utility

costs Courier/Delivery costs Outside warehousing

WMS Justification Direct Labor

Pre-receiving Receiving Returns Putaway Replenishment Pallet picking Case/Piece picking Value-added processing Shipping Overtime

Indirect Labor Floor supervision Expeditors Inventory control Training Overtime Other

Administration Shipment planning Inventory management Traffic Overtime Other

WMS Justification Other Tangible Savings

Space utilization Transportation Expedited delivery Reduced paperwork Reduced operating costs Damage Shrinkage Perishable loss reduction Storage/picking/shipping

errors Physical inventory costs

Intangible Savings Order cycle times Customer service Inventory turns Reduced obsolescence Lost orders ABC facilitation Performance measurement

WMS Benchmarking Order Fulfillment Inventory Management Warehouse Productivity Transportation Performance

Order Fulfillment Measures On-time Delivery Order Fill Rate Order Accuracy Line Accuracy Order Cycle Time Perfect Order Completion Percentage

Inventory Management Measures Inventory Accuracy Damaged Inventory Days On Hand Storage Utilization Dock to Stock Time Inventory Visibility

Warehouse Productivity Measures Orders per Hour Lines per Hour Items per Hour Cost per Order Cost as % of Sales

Transportation Performance Measures On-time Deliveries Damage Demurrage Cost Percentage Assessorials Cost Percentage Missed Appointments Percentage Freight Bill Accuracy Cost per Order Cost as % of Sales

Creating a Responsive WMS Use contemporary ADC technology and systems to assure

Accurate execution of receiving, storage, and move tasks Error-free picking, replenishment, and shipping Traceability

Provide seamless interfaces to other corporate systems to assure Real-time visibility of inventory availability

by SKU, quantity, lot number, serial number and shelf life by location Real-time order confirmation and status for customers Event-driven exception handling

Facilitate a quick match of available resources to current and expected inbound, replenishment, and outbound workload Select the best operators and equipment for tasks based upon

proximity, skill sets and priority Task operators to immediately store or cross-dock receipts

Creating a Responsive WMS Support returns processing and reverse logistics Use task interleaving to minimize deadheading Improve order consolidation, wave planning, inventory allocation, and pick

sequencing Identify consolidation opportunities to free space and reduce outside

storage requirements Support bill of material, work order, and value-added processing Update inventory records as events occur Provide accuracy that allows replacement of full physicals with scheduled

cycle counts Time stamp each transaction and identify the operator who performed it Provide feedback to the workforce and support performance measurement Measure supplier and carrier performance

WMS Trends

Further industry consolidation as well as alliances with enterprise systems providers

Activity based costing and management Embedded profiling tools for space use analysis

to facilitate relayout and inventory slotting Object-oriented tool kits for requirements

modeling and WMS development

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