Warehouse Management.

Warehouse Management

Agenda Business Challenges Oracle’s Leadership Position
Solution Overview Let’s now drill down on the positioning of these five areas (which form the framework for the next 34 slides through slide 51), starting with the ability to introduce profitable new products. The graphic at the top of the page ties back to the chevrons on the previous slide. Each process/chevron ties to a bullet point below. As we move through the bullet points, the appropriate chevron is highlighted while the others are grey.

Business Pressures Just-in-Time Delivery Guaranteed Availability
How can I improve the speed of warehouse operations? How do I integrate operations to reduce order processing time? Guaranteed Availability How can I improve order promise accuracy? How do I create a global view of inventory? Internal Processing Inbound Outbound One Size Fits One How can I manage SKU proliferation? How do I ensure labeling compliance? There are many sources of pressure on these Warehousing processes - many have always been present, many are associated with the e-business transformations that have occurred over the last few years. JUST-IN-TIME DELIVERY : requires the ability to have accurate, global, real-time inventory visibility so that order promising can be accurate and available inventory can be leveraged to the fullest extent. This must be combined with the ability to receive and process an order in the minimum amount of time. This requires internal efficiency within the warehouse and the elimination of latency between the order taking system and the warehouse. (GUARANTEED AVAILABILITY: Includes having information in real-time) VARIBLE DEMAND : The order pattern for many organizations has changed from infrequent, predictable bulk orders to that of smaller, more frequent orders. This has been driven by a combination of new sources of demand such as the Internet, and changes in the buying habits of traditional B2B customers. This order fragmentation tends to increase the workload in the warehouse and also adds pressure on transportation costs. Another source of Variable Demand is that ordering can now be Global. This means that in many cases the traditional view of workload patterns and shipment cut-offs has to change. LOWEST TOTAL COST : This has always been a goal for any warehouse – however the pressure to achieve to have never been greater. This requires a combination of inventory reduction combined with labor and general cost reduction. All of this must be achieved while maintaining high fill rates and shipping accuracy – or the initial savings will ending costing you more in returns and lost customer satisfaction. INCREASED COMPLEXITY : As customer expectations shift towards a “One Size Fits One” model, the pressure is for the warehouse to provide mass customization capabilities such as Assemble to Order, Configure to Order, Custom Kitting, etc.. It also has led to a general increase in the number of Stock Keeping Units being managed by a typical warehouse. These trends of SKU Proliferation and the need to support internal warehouse Value Added Services have significantly complicated the types of processes that a warehouse system must support. Lowest Total Cost Where can I reduce inventory while maintaining high fill rates? How do I improve labor efficiency?

Operational Challenges
Procurement Manufacturing Order Management Warehouse System 1 Warehouse System 2 Warehouse System N The traditional way to obtain that functionality was to but a so-called “best of breed” warehouse management application and to “bolt it on” to your ERP application. The problem with this approach has always been that of integration. This causes many challenges in every part of the solutions lifecycle, adding cost, uncertainties and delays to the development and deployment of these implementations. Traditional Shortcomings: Integrating Disparate Systems is Difficult Customized to Meet Business Needs Multiple Middleware Solutions for RF Lack of Global Inventory Visibility Operational and Support Challenges Limited Support for Global Operations RF Middleware RF Middleware RF Middleware Integration and Operation Complexity, Localized Solutions

Value Chain Transformation
BENEFITS Optimize and Streamline fulfillment operations Synchronize processes across functional silos Monitor supply chain performance to Goals Collaborate with trading partners for Accurate supply chain Data Globalization & Standardization of processes Drive customer compliance Support expansion into new markets and higher business volumes Greater Agility to respond to Change ROI Best in Class Examples 30% increase in operator productivity 100% inventory accuracy 30% decrease in handling cost / unit 95% reduction in overtime used 30% reduction in scrap 50% increase in on time shipments Thermos increased their warehouse operator productivity by 30% Royal Appliances/TTI Floorcare and Enseval brought inventory accuracy to almost 100% Life fitness decreased handling cost/ unit by 30% Life Fitness reduced overtime by 95% Tenderheart treasures reduced scrap by 30% Grupo abril increased on time shipments by 50%

Support for the Integrated Enterprise Built-In, Not Bolt-On Functionality
Eliminate Integration Reduce Cost and Complexity Reduce Risk and Upgrade Issues Eliminate Problems with Reconciliation Simplify Support Warehouse Management Service Finance Planning Procurement Manufacturing Fulfillment And this logistics solution is fully integrated with all aspects of the E-Business Suite – providing logistics services, regardless of transaction source. Unified Information, Integrated Processes

Built-in Mobile User Interface Built-in RF Middleware
Oracle Mobile Supply Chain Apps (MSCA) Support Basic Warehousing Needs… Built-in Mobile User Interface Mobile Manufacturing Mobile Quality Moves, Issues, Returns, Scrap, Completions, … Quality Collections, Specifications, … Mobile Receiving Mobile Inventory Mobile Shipping Direct, Std, Inspect, Cross-Dock, Print, … Misc. Transactions, Transfers, Counts, … Pick, Confirm, Ship, Confirm, Print, … Built-in RF Middleware Mobile Transaction Server RF Base Station This is Oracle Mobile Supply Chain Applications. Oracle MSCA does not add new functionality, but it does provide the very real benefits and ROI of reduced latency due to the ability to perform transactions on the shop and warehouse floor, and increased accuracy and efficiency due to the use of bar-coding and the elimination of parallel, manual systems. The key thing to remember about Oracle MSCA is that it is a technology layer that provides an alternate user interface for the existing transaction set. And this technology layer is developed and supported by Oracle. Oracle MSCA is both an alternative and a compliment to to Oracle Warehouse Management, which we will focus on for the remainder of this presentation. It is a good alternative for those companies who want mobile and bar-coding capabilities, but who find the current Oracle 11i material handling transaction set adequate for their business needs. It is a compliment in that Oracle MSCA provides the mobile and bar-coding support for Manufacturing and Quality users, and this can be used in conjunction with Oracle WMS for the warehousing and material handling needs where the business needs warrant a full blown warehouse management application. The decision to use Oracle MSCA or Oracle WMS can be made inventory organization by inventory organization - giving great flexibility in deployment. The new RF and Bar-coding support from Oracle is bundled with Oracle MSCA. The Architecture is designed around three main components: Mobile Transaction Server : This is equivalent to a “Forms Server”, but for mobile devices. This is designed to be scalable by allowing you to add multiple mobile servers to accommodate the traffic. All of the UI and validation logic for the application runs on the Mobile Transaction Server with the back end processing running in the Data Base. The use of a central middle tier, without the need for distributed processing, means that there is no need for complex hardware at each remore site. This can significantly reduce the cost of deployment and support. RF Device Support : The devices supported are “direct-connect” to the application - usually through an RF base station which is akin to a router in a wired network. This then connects the devices through the LAN or WAN to the Mobile Transaction Server. The communication between these two is Telnet over TCP/IP - basically screen images and scanned or keyboard input - and has been designed to be as light as possible for optimal performance. The use of standard Telnet permits the solution to use almost any telnet-capable device in any combination. Oracle has already certified over 30 devices from vendors such as Intermec, Symbol, LXE and others. Mobile Application Framework : This tool was built so that Oracle could create applications that are suitable for typical industrial devices. These applications and devices require compact screens and an user experience suited for fast, repetitive processing of a small set of transaction. This Mobile Application Framework technology also incorporates advanced features such as 2D barcode support and Data Identifiers which permits out of sequence scanning; full Multi-Lingual Support; screens which build dynamically to eliminate the clutter caused by un-required fields; field level validation; etc. In addition, the same application will automatically adapt to the different form factors of each device. The above capabilities are all included as part of the Oracle MSCA (and Oracle WMS) products – all fully supported by Oracle. This delivers the functionality, ease of use and performance required by WMS applications, without the costs and support complexities of third party middleware. LAN or WAN Apps / Database RF Device Telnet Over TCP/ IP SQL Net

Tailorable Rules & Workflow Process
Oracle Warehouse Management Solution A Complete Warehouse Execution System Tailorable Rules & Workflow Process Cost Assemble WIP Issues Transfer Count Move Replen- ish Label RF Support RMAs Purchases Transfers Receive Inspect Cross Dock Putaway Global Visibility Ship Pack Directed Pick RTVs Orders Transfers This represents the main components of the Oracle Warehouse Management solution. This includes advanced WMS features such as: Built-in RF/Barcode support Full Inbound processing capabilities for a variety of transaction sources and with directed put away A full complement of internal processing capabilities, including full integration with Costing and Manufacturing Sophisticated Directed Picking and Outbound Processing, again supporting a variety of transaction sources A Task Management process to organize and dispatch work automatically An innovative Business Rules engine – which permits tailoring the application without the need to resort to customization. All of this is delivered with seamless integration with the rest of the e-business suite. Seamless Integration Transportation Purchasing Manufacturing Fulfilment

Comprehensive Wave Planning Advanced Tools to Manage Work on the Floor
Wave Rules Analytics Pack Pick Ship Create Wave Plan & Analyze Wave Release Wave Task Planning Monitor Wave Execution

Automated Task Management Create, Organize, Dispatch Tasks to Optimal Resource
Pick Wave Task Queue Split Merge Sort Create & Allocate Task Dispatch Tasks To RF Devices Support Multiple Picking Methodologies Match Skills and Equipment to Tasks Perform Task Sequencing and Interleaving Create Paperless, Streamlined Processes Align Pick Plan with Business Mix Reduce Safety Issues and Training Costs Significantly Reduce Travel Time Oracle WMS supports a number of mechanisms for dispatching work, such as picking tasks, to the warehouse users. These include standard mechanisms such as pick tickets and picking labels. In addition Oracle WMS supports fully automated task dispatching. Using this approach, pickers receive tasks directly on their RF device simply by pressing the “Accept Next Task” button. The determination of who gets which task next is controlled by the WMS Rules Engine. Oracle WMS permits the definition of each picker to the system and what skills they possess (high pick, fork-lift driver, hazardous certified, etc.). Each piece of equipment (fork-lifts, pallet-jacks, etc.) can also be defined, and whether it is available to the picker. The system permits the definition of the “type” of each task (e.g., “Hazardous Pick”, “High Pick”) and what equipment is required for that pick. Finally the system can infer the pickers current location based on the location of their last task. Task Dispatching is the process by which these resources, skills, equipment availability, and current location is matched to the requirements and location of the task. This process may be adapted to the specific needs of the warehouse via rules that are defined by the user in the WMS Rules Engine. The goal of Task Sorting and Sequencing is to optimize the overall processing of an entire set of tasks. This may mean splitting a single pick line into a pick from an “EACH” pick location and a pick from a “BULK” location. Each of these tasks may be dispatched to different users. Similarly, several picks of small quantities for the same item may be combined into a single pick from a “BULK” location. The control of how tasks are split and grouped is via the selection of Picking Methodologies during Pick Release. Oracle WMS supports a wide variety of methodologies. For example, you could select “Zone” picking to ensure that pick tasks are organized by sub-inventory. “Order” picking would ensure that a single user is dispatched all of the picks for an order. Each location may be assigned a picking sequence with the sub-inventory. This sequence may be assigned so as to represent non-linear sequences forced by physical obstructions, etc. By using this sequence, travel time can be minimized.

Cross-Dock and Direct Ship Selectively Accelerate Warehouse Material Flow
Peg demand to inbound receipts based on flexible optimization criteria Cross-Dock Receive Inspect Deliver Put-Away Pick Release Pick Drop Ship Inventory Receive Fulfill Configurable Flows Robust Consolidation Methods Planned & Opportunistic Cross-Docking Rules Based Supply – Demand Matching Adjust To Storage Policy Changes Accelerate Receiving & Fulfillment Processes Reduce Handling And Inventory Increase Operator Efficiency Crossdocking allows warehouses to increase its operational efficiency by transferring inbound material directly to an outbound area. It bypasses the inventory-holding function of a warehouse while still allowing it to serve its consolidation and shipping functions. Prior to Release 12, crossdock execution had many limitations such as outbound staging to default locator, lack of consolidation support, etc. With Release 12, crossdocking can be planned in the warehouse using a set of crossdock criteria. The system can identify crossdocking opportunities in the warehouse by comparing expected receipts and outbound shipments. When a crossdocking opportunity is identified, the scheduled inbound receipt is pegged to the outbound shipment. A specific inbound receipt is identified based on whether the warehouse wants to maximize crossdocking or minimize wait time. In Release 12, Opportunistic crossdocking has been enhanced such that crossdocking occurs on the basis of crossdock criteria. In addition its no longer necessary to have backordered sales orders to perform opportunistic crossdock. The execution of crossdocking has been streamlined as well. This feature extends the Advanced Task Framework in the crossdock execution process. Features such as consolidation, suggestion of staging lane, creation or merge with an outbound delivery etc. can be leveraged to better support your crossdocking material handling processes. Planned Cross Docking Peg demand to inbound receipts based on flexible optimization criteria Rules based determination of eligible supply & demand types Managerial override & approval as required Leverage Oracle’s Configure to Order pegging to expedite assemble to order business flows Also supports express ASN receipt, load and pick

Response & Exception Handling
RFID-Initiated Shipping and Receiving Process Transactions with No Manual Intervention RFID Middleware (3) Interface to readers, clean and filter data, then pass IDs to application (1) Load of pallets and / or cartons with RFID tags on each (2) Drive load through RFID Reader in Receiving Dock (4) Access objects associated with the ID's (e.g. LPN's on ASN) then raise correct Business Event RFID Event Processor Share RFID information with your supply chain partners using inbound and outbound ASN Out of the box DoD compliance including generation of DoD-64 & DoD-96 (5) Access associated source docs (e.g. the PO’s ASN) Application APIs (6) Process the Business Event, (e.g. Receipt of pallet or carton) Also supports express ASN receipt, load and pick Response & Exception Handling (7) Confirm success or failure (e.g. trigger green light or sound buzzer) (8) Putaway, rescan or divert material

Integrated Planning & Execution
Comprehensive Logistics Solution Integrated Logistics Adapts to Changes Carriers / 3PLs Global Customers Collaboration & Event Management Book / Tender Manage Wrhs Pick & Label Pack - Ship Plan Rate Track Settle Inbound Supply Source Outbound Demand Destination … An integrated logistics solution that shepards products or shipments from the upstream source to the downstream destination … from planning, through rating … booking, tendering, or shipment requests … picking, packing, and getting it out the door … tracking and tracing … replanning when problems pop up … and settling of accounts (via billing, auditing, and payment). All of this is integrated together with carrier, supplier, and customer collaboration and also with embedded business intelligence tools for continuous improvement of service quality. Key point is that Oracle is developing a complete logistics solution Integrated Planning & Execution Continuous Improvement On-Time Performance Customer Satisfaction Carrier Analysis

Oracle Warehouse Management
Responsive Fulfillment Optimized Decisions Aligned Processes The Oracle WMS solution is: Tailorable – through the WMS Rules Engine and other capabilities Automated – through the use of advanced WMS features like Directed Picking, Task Dispatching, Compliance Labeling, etc. Integrated – out of the box - with other Logistics capabilities and the entire Oracle E-Business Suite Global – through features such as Multi-lingual support and the Oracle Worldwide Support organization

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