Transportation and Warehouse
Planning Systems
Byron Flores
Bus M. 462
April 12, 2010
Presentation Overview
• Transportation and Warehouse planning systems
defined
• Why they should be important for a business
• Key elements of TMS & WMS
• Real life example
• Exercise
• Summary
Transportation and Warehousing
Systems
Transportation management systems (TMS), plans,
executes, and manages transport and movement
functions
Parties involved include: Shipper, Carrier,
and Consignee (recipient)
Warehouse management systems (WMS),
incorporate processes to guide physical activities,
including product receipt, material movement and
storage, and order selection
Why is TMS and WMS important
to Businesses?
• Helps optimize systems and approaches.
• Eliminates waste of resources and nonvalue added steps.
• Improves customer satisfaction
• Reduces unnecessary inventory
• Reduces overall cost.
Functions of TMS
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Carrier Selection
Carrier Scheduling
Dispatching
Document preparation/ Freight payment
Performance Measurement
Shipment consolidation and routing shipment rating
Shipment scheduling
Shipment tracing and expediting vehicle loading
Advanced TMS Applications
• Advanced TMS applications incorporate
increased planning and performance
measurement capability.
Key Elements of TMS
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Equipment scheduling
Yard management
Routing and advanced shipment notification
Carrier Administration
Equipment and Yard Management
• Scheduling is a key component
• Yard management requires careful load
planning, equipment utilization, and driver
scheduling
• Arrangement of delivery and pickup
• Pre schedule dock positions or slots
Load Planning
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Determine capacity of load
What is the size of individual shipments?
Delivery sequences
Almost all large companies use TMS
software to help in load planning
Routing and Advanced Shipment
Notification
• Routing software
• ASN provided to customers
• Delivery specifications for customers
Carrier Administration
• Administer the performance of for-hire and
private transportation
• Implement core carrier strategy
• Determine to use integrated service
providers (ISPs)
• Identify most economical mode
Calculating the best route
Functions of WMS
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Assign and track storage locations
Inventory cycle counting
Labor scheduling
Equipment scheduling
Lot control
Order selection, location, and replenishment
Receiving
Put away
Storage
Performance measurement
WMS and order selection
• One of the main uses of WMS is order
selection.
Types of selection:
Discrete selection
Wave selection (batch)
Wave Selection
• Can be designed in a number of ways
• Assigned responsibility for a specific
portion of the warehouse
• Fewer selection errors
Core functions of WMS
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Receiving
Put-away
Cycle-count
Pick
Task Management
Quality Analysis
Replenishment
• Pack
• Opportunistic cross
dock
• Inventory Control
• Work order
management
• Ship
WMS work procedures
• Set procedures for workers when receiving
and shipping
• Accuracy when case counting
• Enhance space utilization
• Replenishment of inventory
• Improved communication
Successful WMS plans
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Offer broader range of services
Fast inventory turnover
Workers must be cross functional
Minimize time and movement
Value added services
Cycle counting
Optimize design of warehouse
WMS tools
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Auto ID data capture
Barcode scanners
Mobile computers
Wireless lans
RFID
Implementing TMS & WMS
• Its important that your company implements
the functions that will be important to the
firm
• Hiring consultants
• Implementing 3pl and other logistical
services
• Hiring expert in the field to implement a
plan
Example of Terry’s Tire Town
Before implementation of WMS
• 188,000 sq fit distribution center
• Tires were put away by brand with no
location tracking system
• Employees pulled orders by memory
• Productivity was bad
After implementation
Used RT locator warehouse management
systems
• Barcode scanning and pallet racking
systems. Helped save money
• Reduced the need of building bigger facility
• Stored more tires in less space
Exercise
• Have focus groups or round table
discussions to see if your firm should
implement WMS and TMS.
• If there is a need- determine where and how
your firm can implement these planning
systems to be the most effective.
Summary
• WMS helps inventory accuracy, visibility
stock availability, and manage quality
control functions
• TMS helps optimize load planning and
shipping routes, and carry out vendor and
carrier compliance
Bibliography
• Tire Distributor Slashes Putaway Time with WMS.Full
Text AvailableBy: Albright, Brian. Frontline Solutions,
Jul/Aug2005, Vol. 6 Issue 6, p38-40, 3p; (AN 17907517)
• Bowersox, Closs, Cooper.”Supply chain logistics
management.” 2nd edition
• A WMS-TMS solution bridges information gap.
Frontline Solutions, Nov2001, Vol. 2 Issue 12, p26-29, 4p;
(AN 5514843)