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Oracle WM Installation Experience July 15, 2002 NorCal OAUG Seminar WMS/Shipping/Distribution.

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Presentation on theme: "Oracle WM Installation Experience July 15, 2002 NorCal OAUG Seminar WMS/Shipping/Distribution."— Presentation transcript:

1 Oracle WM Installation Experience July 15, 2002 NorCal OAUG Seminar WMS/Shipping/Distribution

2 Introduction s Experience Development for 2 separate WMS Experience – 10+ years in Supply Chain WMS Integration/Interface Development ERP, MHE, TMS, SCEM Project Management Assessments and Optimization Software Selection Studies (Right Fit) Supply Chain Strategy

3 Overview Designs and Distributes quality decorative country items for the home. Implementing Oracle WM (phased approach), along with Order Management, Inventory, AR, AP, PO Goals/Benchmarks Project Tips

4 Total Logistics Cost % of Total Logistics % of Sales Transportation43%3.44% Warehouse25%2.09% Inventory Carrying Cost 29%2.32% Administration 3% 0.24% TOTAL100%8.09% Source: Collection of Multiple Studies and CIBERs Experience - Best Practice Data See next slide for a further breakdown

5 Total Warehouse Cost % of Total Warehouse Cost % of Sales Labor45.7%.96% Space21.5%.45% Energy4.4%.09% Equipment6.9%.14% Materials8.3%.17% Other13.2%.28% TOTAL100%2.09% Source: Transportation and Distribution - Best Practice Data

6 WMS Benefits - Quantifiable Improved Space Utilization 20 to 30% System Directed Putaways Enhanced Consolidation Cross-Docking Opportunities Reduction of Scrap 13 to 30% WMS Picking Logic through system monitored shelf life w Reduction in Inventory Loss w Reduction in Mis-Ships

7 WMS Benefits - Quantifiable Labor Productivity 50-60% of warehouse workers time spent traveling Benchmarked to reduce 10% – 15% for phase I Benchmarked to reduce another 10% – 15% for phase II Optimize total workload Optimize work force task assignment

8 WMS Benefits - Quantifiable Picking Productivity Increases 16 to 25% Optimized Picking route Use of Labor Standards Reduction in Customer Returns 11 to 25% w Less Picking Errors

9 Summary of Improvement Goals Improved Customer Service Reduced Customer Errors Order Accuracy Complaints Damaged Sales Promises Kept Reduced Customer Lead Times Order Lead Time (Order Placement - Delivery Date) Real Time Visibility Improved Customer Service Reduced Customer Errors Order Accuracy Complaints Damaged Sales Promises Kept Reduced Customer Lead Times Order Lead Time (Order Placement - Delivery Date) Real Time Visibility Improved Customer Service

10 Summary of Improvement Goals Reduced Operating Cost ØReduced Labor Cost wWorker Productivity ØImproved Space and Equipment Utilization wCube Utilization (Facility and Locations) wTravel Distance ØIncreased Capacity w% Fill Rate wInventory Accuracy by Location ØReduce Capital Investments wIncreased Inventory Turns wCarrying Cost (Cost of Money) Reduced Operating Cost ØReduced Labor Cost wWorker Productivity ØImproved Space and Equipment Utilization wCube Utilization (Facility and Locations) wTravel Distance ØIncreased Capacity w% Fill Rate wInventory Accuracy by Location ØReduce Capital Investments wIncreased Inventory Turns wCarrying Cost (Cost of Money) Reduced Operating Cost

11 Summary of Improvement Goals Enhanced Performance Measurements Performance Information Systems Management Reporting Tools Productivity Tracking Distribution Statistics Operational Control System Real-time Visibility to Performance Concerns Warehouse Management Control Board Enhanced Performance Measurements Performance Information Systems Management Reporting Tools Productivity Tracking Distribution Statistics Operational Control System Real-time Visibility to Performance Concerns Warehouse Management Control Board Enhanced Performance Measurement

12 Project Tips Executive Sponsorship and Commitment Set realistic goals Team effort – from end-user to executive Document, Document, Document Operations and Technical Test every situation imaginable Do not underestimate training Create evaluation tools before go-live Take ownership

13 Thank You! Brent Peters Ciber (CBR) Supply Chain Practice Director (513)


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