2. AutoPalletP3 A Powerful Decision Support Tool for Pallet Picklist Planning Copyright © 2000

3. 2 What Is AutoPalletP3? Case-picking expert system Originally developed for exclusive use of Procter & Gamble Now available as a licensed software package Runs on most operating systems: from PC to mainframe Designed and installed by Warehouse Optimization LLC, a team of operations research experts

4. 3 What Can AutoPalletP3 Do for Your Warehouse Operations? Eliminates damage caused by improperly loaded pallets Reduces errors in picking orders to pallets for shipping to individual customers Reduces time for picking orders to pallets Reduces training time and costs for introducing new personnel Cuts space requirements

5. 4 Eliminates Damage Caused by Improperly Loaded Pallets Instead of building THIS… you can build THESE... Result: less product damage in transit, easier unloading, better fit with customer needs

6. 5 Reduce Errors and Time in Picking Orders to Pallets AutoPalletP3 takes THIS…..and turns it into THESE…. Result: faster picking and load building

7. 6 What Can AutoPalletP3 Do for Your Warehouse Operations? Increases overall productivity Eliminates rework caused by need to re-pack pallets that won’t fit vehicle efficiently Reduces worker’s compensation claims by allowing two pallets to be stacked rather than building on tower Customizes pallet load configuration for each customer Increases efficiency in loading vehicles correctly the first time with more cube

8. 7 Significantly Reduces Unsaleables & Lost Sales Unsaleables in grocery industry is a MAJOR issue Unsaleables: 0.96% sales = $4.0 Billion Unsaleables caused by poor pallet configuration and loading: 0.44% sales = $1.8 Billion

9. 8 Almost Eliminates Crush, Straddle, and Other Common Problems

10. 9 Increases Productivity & Reduces Learning Curve Pickers spend 10-15% of their time working out HOW to stack product Case study: P&G Health & Beauty Products Plant –AutoPalletP3 increased productivity 12% in first month (20% in the first year) –Reduced picker learning curves by 75% – very important in most operations, where picker turnover high Bottom line: very quick return on investment

11. 10 AutoPalletP3 Makes Picking and Pallet Building Safer Supports picking tall pallets in two pieces that can be fit together without damage Eliminates: –“Throwing” cases –Too-high lifts

12. 11 AutoPalletP3 “Cubes Out” Loads as Efficiently as Possible Optimizes loading sequence and fit for specific vehicle: Adjusts pallet height to accommodate cube Case study: –Operation “cubes out” trailers before it “weights out” –Truck cube utilization increased 22% –Annual freight savings 22%

13. 12 How AutoPalletP3 Works AutoPalletP3 is an expert system Plans orders by knowing everything about the product, where the pick locations are, and how we want the loads to be built Works by following a list of RULES

14. 13 Picklists are generated based on RULES and then converted automatically into optimized loads. How AutoPalletP3 Works

15. 14 How AutoPalletP3 Works Takes each complete order and converts it into picklists Uses more than 20 RULES to make decisions, and a scoring system to resolve conflicts among RULES May try up to 500 different solutions until it finds the best result for the TOTAL order - not just for one pallet Sample RULE: Keep products with strong odors away from those susceptible to damage from such odors

16. 15 Just a Few of AutoPalletP3’s Rules Plan the orders as a series of DOUBLE SETS, which when paired up correctly will fit in the truck in the least number of pallet spaces. The lower set MUST have a flat top, of a large enough area to rest the upper pallet on it without damage. There are height limits for each set.

17. 16 Just a Few of AutoPalletP3’s Rules Wherever possible, build in layers of even height, by combining products which have the same height cases. Use full product layers when available, and if more than one layers is needed of an SKU, start the pallet with that, which might give the picker the chance to use an existing part-load.

18. 17 Just a Few of AutoPalletP3’s Rules If an order asks for a quantity which is more than one layer, but not an exact layer quantity, keep it all on one pallet if possible. But if you cannot - because the lower set must have a flat top - then the odd cases MUST be on the same DOUBLE SET.

19. 18 Just a Few of AutoPalletP3’s Rules Minimize layer overhang. Undersize layers need to go ON TOP OF larger layers, not below them or product may be damaged. OK

20. 19 Just a Few of AutoPalletP3’s Rules When making up a layer from mixed cases, there is a minimum “coverage factor”. This would NOT be a good layer.

21. 20 Just a Few of AutoPalletP3’s Rules Minimize straddles - this is when a case rests on two cases of different heights. It may be better with odds at the top of an upper set to stack them on top of each other. OK

22. 21 Just a Few of AutoPalletP3’s Rules Do not make a mixed-case layer too large either - it must not overhang the pallet. However, a full layer of one sku MAY overhang the pallet if this is its normal pattern. OK

23. 22 Just a few of AutoPalletP3’s rules And there are strict rules to minimize travel distance and repeat visits to the same location - but these have to be traded off against the other rules.

24. 23 PC AutoPalletP3 Integrated AutoPalletP3 (embedded in your Warehouse Management System) How AutoPalletP3 Works

25. 24 How AutoPalletP3 Works The importance of RULES can be adjusted for any location.

26. 25 AutoPalletP3 Data Item master –Case weight and dimensions –Layer dimensions –Cases per layer Order data –Pallet type and size –Product required and location Warehouse data Layout

27. 26 Payback Case study - When P&G implemented AutoPalletP3 at two sites in the US, they quickly realized savings Payback in 19 days (yes, 19 days) More importantly, P&G’s customers benefited significantly from much more accurate and damage- free shipments

28. 27 AutoPalletP3 History Developed in 1992 Enhanced in 1993, 1994, 1995, 1996, 1998 Operating on 3 continents Run on millions of cases weekly Originally proprietary to P&G – now available to other companies Supported by Warehouse Optimization, LLC

29. 28 AutoPalletP3 Installation & Support AutoPalletP3 is performance-tuned for each installation Our team of experts: –Gathers information about your installations –Reviews your needs –Creates interfaces with existing systems –Installs the new system –Trains your people –Is available for ongoing support

30. 29 Who Is Warehouse Optimization LLC? Warehouse Optimization, LLC is an international partnership–an offshoot of Moore & Associates Dedicated to using technology to enhance warehouse operations Experienced in using operations research techniques to create expert systems by learning from the people who actually do the job

31. 30 Contact Us for More Information and to Arrange a Test Drive Please visit our web site at: www.AutoPalletP3.com Contact us to arrange a free, no-obligation discussion and on-site demonstration of how AutoPalletP3 can benefit your operations. Warehouse Optimization, LLC Phone (615) 791-8000 Email: Info@AutoPalletP3.com