Supply Chain Execution Systems
Warehouse Management Systems
Lecture Resource

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

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
Workload Management
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

Receiving
Reverse Logistics
Storage and Putaway
Location Selection
Override
Location Confirmation
Crossdocking
Relocation
Consolidation

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
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 Breakdown
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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