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2014 Annual Conference: Cultivating eBusiness for Global Success

WelcomeAIDC Educational Session


Intro

MISSION Educate and promote adoption of AIDC technology across the agricultural industry supply chain

AIDC Task Force Areas of FocusStandards Review

Review Current Guidelines for UpdatesGap Analysis /Cristal Partnership

Council PartnershipsAg RetailAllied Providers

EducationDevelopment of Use Cases Provide Learning Opportunities


AIDC Task Force Members Jody Costa

Barcoding, Inc.

410-385-8532 X132

[email protected]

Marcia Rhodus

Monsanto Co.

314-694-8759

[email protected]

Shane Snyder

Barcoding, Inc.

410-385-8532 X142

[email protected]

Mike Ball

J.R. Simplot Company

208-780-2309

[email protected]

Eric Soderholm

AbeTech

763-428-1285

[email protected]

Randy Fry

Ceres Solutions

812-249-7542

[email protected]

David Shaffer

Land O’Lakes

469-916-4055

[email protected]

mailto:[email protected]








Retail AIDC Demo

Mike Ball, Simplot


History on Barcode Project1. Process to install Product Barcoding for Inventory, Delivery

Tickets, and Invoicing.

2. Team effort required as this touches many areas and locations

3. Input of Barcode’s/GTIN’s for each product that currently have Barcodes from manufacturers on packages

4. Decisions made on Product Barcode’s/GTIN’s produced and on products that do not have Manufacture Barcodes

5. Project duration was an issue as we had 15,000+ sku’s

DEMO OF MANUAL PROCESSES VS THE USE OF BARCODES


Delivery/Invoice Demo

MANUALLY CREATE A DELIVERY/INVOICE TICKET

• Manually create a delivery ticket by using product look-up and physically entering all data needed

• Note time and number of steps to complete Manual Process

USE A SCANNER TO COMPLETE THE DELIVERY PROCESS

• Use a barcode scanner to create a delivery ticket, which will automatically enter the data needed

• Note the time it takes to complete process using scanner


Physical Inventory Demo

MANUAL PROCESS FOR PHYSICAL INVENTORY

• Manually count inventory on sheet and then enter into system

• Note this is multi-process – counting the inventory, writing the counted quantity down on count sheet, then entering into the system

USE A SCANNER PROCESS FOR PHYSICAL INVENTORY

• Use a barcode scanner to scan product and then enter quantity

• Note time savings in the number of steps needed to complete the physical inventory


AIDC Container Tracking DemoEPA REGULATED CONTAINER MANAGEMENT USING MOBILE DEVICES

Manual Process • Manually write down Container Barcodes on a Printed Delivery Ticket

then go back and enter into system. • Because of the human element, there could be errors that force you

to go back out and recheck the Barcode Numbers for each container.

Scanner Process• From an existing Delivery Ticket, scan the Container Barcodes to

complete the ticket for delivery• Through the use of automated data capture, errors are minimized

(99.9% accuracy).


Issues with Manual Processes

A. Incorrect products on orders

B. Lot number issues and inaccuracies

C. Large number of returns from customers because product or quantities were not what was ordered

D. Time-consuming physical inventory and frustrating recounts

E. Large amount of employee time to fix issues

What other issues can you think of that result from manual processes??


Process Improvements with Barcodes

• Minimized product issues since you are reading the barcode and not doing manual product look-ups

• Huge time savings during physical inventories (one manager said that they saved 40 overtime hours on two physical inventories per year)

• Time and labor savings

• Direct positive impact on customers waiting on an order to be completed – faster and more accurate

What other improvements can you realize with the use of automated data capture??


AIDC Scanner – Easy Use

• Open Excel and allow users to scan products and see how easy it is to scan bar codes.

• “See one, do one, and teach one” process should alleviate concerns about training users on using barcode scanners

If you’ve implemented barcode scanning, how did you train your team??


AIDC in Distribution

Shane Snyder, Barcoding, Inc.


Major Impact Points of AIDC

(1) Receiving

(2) Putaway

(3) Picking

(5) Packing &

Shipping

(4) Physical

Inventory


Barcodes Are Just the Beginning

Three Primary Data Capture Technologies:

• Barcode – Effective, efficient, accepted technology

• RFID (radio frequency identification) – no line of sight/user

• Voice – Increased efficiency/accuracy


The Small but Mighty Barcode

• Simple

• Powerful

• Accurate

• Accepted

• Standardized

• Fastest “time to value”


Receiving

Real-time connectivity at dock door increases the velocity and the accuracy of the receiving function.

Impact

• Streamline and error-proof the receiving process• Enable instant inventory visibility and availability• Eliminate congestion at the dock door• Improve worker productivity• Reduce cycle times• Speed putaway process for faster inventory availability


Put Away

Virtually error-free – materials are always in the right location.

Impact

• Reduce dock-to-stock times• Optimize inventory availability and accuracy • Improves worked productivity – more with the same• Protect customer service and satisfaction


Packing and Shipping

Scanning capabilities and wireless connectivity improves speed and accuracy.

Impact

• Increase productivity– do more with the same• Increase shipping accuracy• Eliminate the costs associated with re-ships• Protect customer satisfaction. Orders are right before packing• Reduce packing material costs• Reduce out-of-stocks


PickingWhether picking individual items or cases, hands-free mobile solutions streamline and error-proof the picking process for fast and accurate fulfillment.

IMPACT

• Meet customer expectations for same say shipping• Achieve 99.9% picking accuracy• Improve customer service• Eliminate returns and return fees• Granular picking to support first in, first out/ last in, last out • Reduce out of stocks• Improve data accuracy• Cost-effectively handle compliance initiatives


Physical Inventory/ Cycle Counts

Mobile and wireless warehouse inventory management technologies reduce the number of workers required for conducting cycle count.

IMPACT

• Streamline inventory management process• Reduce shrinkage and loss• Enhance accuracy without delay• Improves customer service with real-time inventory control• Imposes operational discipline• Improved reporting• Lower labor time and cost


Ask the Right Questions• What are you trying to accomplish with

automation?

• How much data would best support the application?

• What are the specific tasks involved?

• What is the work environment? Does it require more ruggedized equipment?

• What are your compliance-labeling requirements?

• What ROI can you expect (or do you require) by automating?

Figure out what will work for your unique organization


Get the Right Teams Involved

Corporate Team• What are our business objectives?• How can we exceed customer expectations?• How can we maintain energy and success?• How well do we use technologies to achieve our desired outcomes?• How do we plan for the day?

Warehouse Team• What are our feedback mechanisms?• How do we measure and share results in ways that are meaningful?• How do we conduct labor planning?• How do all the pieces fit together for the warehouse?


Be Prepared

Understanding the process goes a long way

toward the success of a data capture project.

For Example:

Appoint representatives from all departments touched.

Gather all existing documentation of current processes.

Designate a project owner who buys into project mission.

Devote adequate technical and financial resources.

Anticipate potential pitfalls.

Know everything won’t be perfect all the time.


Be Efficient – Accurate – Connected™

“Barcoding systems only generate a

profit when supported by

improved processes.”

Real-time Visibility is Essential

• Increase customer satisfaction and safety• Meet government and compliance

mandates• Improve data accuracy• Increase operational productivity • Protect your brand and bottom line• Reduce warranty claim costs• Focus on generating revenue

What will you gain?


AIDC Infrastructure

Eric Soderholm, AbeTech


Wireless Networks

1. Commercial or Consumer grade wireless2. Stand A Lone or Controller Based Solutions3. Indoor/Outdoor Coverage4. Environmental Conditions5. Site Survey/Installation6. Cabling7. Switches

On Average for budgeting purposes we use 15k-20k sq. ft. for one AP in a warehouse. APs can range from $100-1000.


Handheld Computers

1. Batch or Wireless

2. 1D Laser, 1D Imager or 2D Imager

3. Several Keypad Options

4. Pistol Grip

5. Cold temp

6. Rugged or Ultra Rugged

Mobile Computers range from $500 for a simple batch device up to $3500 for an ultra rugged wireless device.


Vehicle Mounted & Rugged Tablet Computers

1. Physical Keyboard or Virtual on screen

2. Operating System3. Durability4. Operating Temperature 5. Moisture 6. Sunlight Viewable Displays

Pricing will range from as little as $1500 up to $5000 based on the requirements.


Barcode Scanners

1. 1D Laser, 2D Linear Imager or 2D Area Imager

2. Cabled or Wireless3. Fixed position4. Durability 5. Direct Part Mark reading (DPM) 6. Density

Scanners will range in price from $100 for a basic tethered scanner up to $1000 for a rugged cordless scanner. Note that DPM options can be as extreme as $3000.


Thermal Label Printers

Price Ranges for Label Printing Options:Portable Printers - $1,000-$2,000Stationary Printers – $400-$5,000Print & Apply - $10,000-$40,000

1. Stationary or Portable2. Print Volume3. Wireless, Ethernet or USB4. Size of Label5. Direct Thermal or Thermal Transfer6. Print & Apply


Software

Data collection software can be as simple as a $500 custom batch application, and sky is the limit for a fully functional Warehouse Management Software (WMS) solution. I will first recommend talking with your accounting software provider to see if they have a data collection module. If that doesn’t meet your requirements, there are many 3rd party WMS providers available as well.


ROI Analysis

http://www.motorolasolutions.com/web/Business/landing_pages/US-EN/ROI/warehouse.html



Key Measures:

# of warehouse workers: Receiving/Putaway/Picking/Cycle Count/Pack-Ship# of warehouse workers: Data EntryBurdened Cost Per Hour Full Time/Part Time/Contract Staff, Overtime %Current Pick Rates: Lines/Units Per Hour

Industry Stats:RF handheld pick rates: 50 to 190 lines/hourVoice pick rates: 175 to 275 lines/hour

Calculate Hard Savings - Labor

ROI Analysis




Key Measures:

Measuring accuracy can be a challenge. There is a industry standard listed below that can be used in ROI development if you are not currently measuring accuracy.

Industry Stats:Manual Picking 7 to 34 errors/1000RF Handheld Picking: 5 to 7 errors/1000Voice Picking: .3 to 3 errors/1000

Calculate Hard Savings – Error Rates

ROI Analysis




ROI Analysis – Customer Impact


• Increased customer satisfaction and retention (reduce/eliminate lost orders).

• Enhanced job satisfaction and ultimately a higher rate of retention for users.

• Reduced assets deployed to manage inventory and fulfill orders.

• Real-time inventory data visibility.

• Less time spent on mistakes and more on making improvements.

Estimate Soft Savings in your ROI Analysis

ROI Analysis




Want to join the team? Contact us.Jody Costa

Barcoding, Inc.

410-385-8532 X132

[email protected]

Marcia Rhodus

Monsanto Co

314-694-8759

[email protected]

Shane Snyder

Barcoding Inc.

410-385-8532 X142

[email protected]

Mike Ball

J.R. Simplot Company

208-780-2309

[email protected]

Eric Soderholm

AbeTech

763-428-1285

[email protected]

Randy Fry

Ceres Solutions

812-249-7542

[email protected]

David Shaffer

Land O’Lakes

469-916-4055

[email protected]








welcome aidc educational sessions3.amazonaws.com/aggateway_public/aggatewayweb/eventsandawa… ·...

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