Supply Chain Execution Systems
Warehouse Management Systems
Lecture Resource
Adapted with permission from presentations by John Hill, © 2002, 2003 John M. Hill, ESYNC
Supply Chain Execution Systems (SCES)
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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
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Fulfillment
Delivery
Visibility
Responsiveness
Fulfillment and Delivery
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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
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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
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Warehouse and Labor Management
Transportation Management
Yard Management
International Trade Logistics
Supply Chain Visibility and Event Management
THE SYSTEM HIERARCHY
ENTERPRISE SYSTEM
Customers
Suppliers
Carriers
ADMIN/FINANCE MANUFACTURING
Purchasing
Order Management
EDI /
WEB
MRP
MES
PLANNING
Demand Mgmt
APS
Customers
Suppliers
Carriers
EDI /
WEB
Enterprise Network
LABOR
MANAGEMENT
WMS
YARD
MANAGEMENT
Receiving Storage
Inventory
Mgmt
Order
Process
Picking
Replen
TMS
Staging Shipping
Loading
Local Area Network
Data Entry Devices
Material Handling Device Control
Task
Mgmt
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
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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
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Receiving
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Putaway
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Blind
ASN/EDI
Conventional or Automatic
Dedicated, Random or Hybrid
Location Selection: System or Operator
Put Confirmation
Picking and Shipping
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Pick by Order, Batch, Wave
Pick Confirmation
Shipping Check Lists
Manifests, Bills of Lading
WMS Differentiators
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Order Planning &
Scheduling
Unit of Measure
Conversion
Location Management /
Slotting
Inventory Allocation
Shelf Life Monitoring
Lot & Serial Number
Tracking
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Cartonization
Cycle Counting
Replenishment &
Consolidation
Task Assignment &
Monitoring
Reverse Logistics
Scalability & Configurability
Upgrade Support
WMS Setup

Product Files
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Location Files
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Descriptions
Dimensions
Units of Measure
Bills of Material
Substitutions
Numbering / Sequencing
Dimensions / Capacity
Equipment Files
Employee Files
Employee Task Prioritization
Workload Management

Equipment Profiles
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Material Profiles
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Location Profiles
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Operator / Equipment Matrices
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Operator / Task Priorities
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Labor Standards
Workload Management
TASK ALLOCATION
New Tasks
2137
RFDC
9873
4532
5471
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Priority
Operator Authorizations
Equipment Type
Current Location
1234 3679
Job Completions
Work Requests
RFDC
Tasks in Memory
Task Manager
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Work Queue
Task
RFDC Link
Material Handling Interfaces
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Conveyor
Sortation
Palletizer
AGVs
Pick (Pack)-To-Light
Carousel
AS/RS
Systems Interfaces
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Purchasing
Order Management
MRP / MES
Labor Standards / LMS
Load Planning
Freight Rating / TMS
Slotting
Receiving
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ASNs / Purchase Order Receiving
Carrier Appointment Scheduling
Pre-Tagged Receipts
Blind (Unanticipated) Receipts
Load Tagging/Labeling
Quality Assurance
Returns
CARRIER SCHEDULING
Receiving
• Operator Assigned to Receiving
• Bar Coded Pallet ID (Scan or Key-Enter)
• (Verify Product, Quantity & Condition)
• Key-Enter Order Number,
Product ID, Quantity &
Condition
• (Pre-Printed License Plate)
WMS
RFDC
RFDC
• Stage
• Crossdock
• QC Move
• Putaway
 Match LP to ASN or Retrieve PO
 Validate Receipt
 Resolve Exceptions
 Check Demand
 Issue Task
 Update Inventory Records
• (Print & Apply LP)
• Stage
• Crossdock
• QC Move
• Putaway
Reverse Logistics
HOLIDAYS 2000
eSales:
$6 Billion
Returns:
$900 Million
Source: BizRate.com
Warehouse
Wasteland or
Competitive
Edge?
Storage and Putaway
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Location Selection
Override
Location
Confirmation
Crossdocking
Relocation
Consolidation
Putaway and Move
• Operator Assigned to Putaway / Move
• Scan License Plate
• Move to Designated Location
• Scan Location Bar Code
RFDC
WMS
Destination
• Storage
• Crossdock
• Quality
• Returns
• Other
 Validate Location
 Check

Resolve Demand
Exceptionsfor
Product

Issue Drop Instruction
-
- -Issue
- - - - - -Move
- - - - - Task
--------- Update Inventory
 Issue Next Task
RFDC
• Confirm Drop
• Await Next Task
Inventory Management
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Lot, Date Code, and Serial Number Tracking
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Shelf-Life Monitoring and Rotation
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Catch Weighing
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Routine and Exception Cycle Counting
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Full Physicals
Replenishment
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Forward Pick Locations
Floating Forward Pick
Replenishment Trigger Controls
Demand Replenishment
Batch Replenishment
Reslotting
Pick Planning
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Host Download Format and Frequency
Wave and Batch Planning
Material Allocation
Order / Shipment Release
Changes and Cancellations
Picking
• Operator Assigned to Picking
• Ready for Next Pick Task
RFDC
• Display Pick Location
• Move to Location
• Scan Location Bar Code
WMS
 Validate Location
 Issue Pick
------------------ Validate Item / Quantity
 Resolve Exceptions
 Update Inventory
------------------ Issue Next Pick
RFDC
• Scan Item Bar Code/LP
• Pick / Confirm Quantity
-----------------• Await Next Pick
Staging and Shipping
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Trailer Scheduling / Processing
Staging Location Management
Staged Load Confirmation
Door / Truck Verification
Shipping Labels
Manifests / Bills of Lading
Shipment Confirmation
WMS Cost Breakdown
COMPONENT
% 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
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Potential Improvements in:
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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
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Potential Reductions of:
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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
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Direct Labor
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Pre-receiving
Receiving
Returns
Putaway
Replenishment
Pallet picking
Case/Piece picking
Value-added processing
Shipping
Overtime
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Indirect Labor
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Floor supervision
Expeditors
Inventory control
Training
Overtime
Other
Administration
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Shipment planning
Inventory management
Traffic
Overtime
Other
WMS Justification
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Other Tangible Savings
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Space utilization
Transportation
Expedited delivery
Reduced paperwork
Reduced operating costs
Damage
Shrinkage
Perishable loss reduction
Storage/picking/shipping
errors
Physical inventory costs
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Intangible Savings
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Order cycle times
Customer service
Inventory turns
Reduced obsolescence
Lost orders
ABC facilitation
Performance measurement
WMS Benchmarking
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Order Fulfillment
Inventory Management
Warehouse Productivity
Transportation Performance
Order Fulfillment Measures
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On-time Delivery
Order Fill Rate
Order Accuracy
Line Accuracy
Order Cycle Time
Perfect Order Completion Percentage
Inventory Management Measures
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Inventory Accuracy
Damaged Inventory
Days On Hand
Storage Utilization
Dock to Stock Time
Inventory Visibility
Warehouse Productivity Measures
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Orders per Hour
Lines per Hour
Items per Hour
Cost per Order
Cost as % of Sales
Transportation Performance Measures
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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
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Use contemporary ADC technology and systems to assure
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Accurate execution of receiving, storage, and move tasks
Error-free picking, replenishment, and shipping
Traceability
Provide seamless interfaces to other corporate systems to assure
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Real-time visibility of inventory availability
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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
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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
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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
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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