Oracle Warehouse Management

Oracle Warehouse Management
Welcome – today we are going to talk about new capabilities from Oracle to address the needs of the Warehouse. Mark Mandeville Sr. Solution Consultant

Warehouse Management At-a-Glance
Internal Processing Inbound Outbound Purchases Mfg / Assembly Transfers Outside Processing Pick Pack Inspection Count Assembly Storage Move Replenish Customer Shipments Vendor Returns Transfers Outside Processing First – let’s step back and look and the Warehousing in general. This consists of three main process areas: INBOUND: This is the handling of goods coming into a facility. Most commonly, these goods are associated with purchases so the receiving process is performed against a Purchase Order. However there are a variety of other sources of receipts. These include Customer Returns where the receipt is against a RMA from the Order System; Transfers associated with Inter-Warehouse movements within the corporation; and possibly receipts of material on a Manufacturing Work Order that had been sent to an external organization for outside processing. Following receipt from these various sources, the material may be inspected and then put away into the most appropriate storage locations. INTERNAL PROCESSING: are all of the processes associated with the internal handling of the inventory. These include Accuracy, either through Physical Inventory Counts or Cycle Counts; intra-warehouse movements and Replenishment activity; Picking – for Customer Orders, internal Manufacturing, Transfers, etc. and possibly Packing activities; etc. It may also include Assembly into kits or even light manufacturing within the warehouse. Warehouses aren’t just for storage anymore and these value added and deferment activities are a vital part of any warehousing workload. OUTBOUND: Is the reverse of the receiving process and has a similar set of possible transaction sources. Most commonly, outbound shipments are associated with Customer Orders, however the other possible sources are the mirror image of the Receiving sources: Vendor Returns associated with Purchase Orders, Transfers associated with Inter-Warehouse movements within the corporation, and Work Order shipments to outside processors. It is clear from this overview that any Warehousing System needs to support a wide variety of processes coming from a similarly wide variety of transaction sources. “Senior level executives now realize that the automated warehouse is as much a part of e-commerce and e-fulfillment as the Internet.” - Supply Chain Yearbook

Warehousing Functionality Spectrum
High Highly Automated Facilities Automate physical inventory handling Warehouse Management Implement a true “execution system” using system directed tasks and task management Capabilities Product / Order Complexity RF / Barcode Only Improve accuracy and reduce latency of existing transactions What kind of warehouse system do you need? This is determined by a combination of factors. These can be generalized into a combination of Complexity and Velocity or Volume. Measures of complexity include the nature of the product (high value, complex lot & serial control), the nature of the orders (complex product mix), the nature of the fulfillment process (kitting, CTO, ATO), or specific or regulatory needs for accuracy. Measures of Velocity or Volume include orders per day, warehouse size, different SKU’s handled, number of users, etc. As either of these increase, the demands placed on the warehouse system increase. From ManuaL Inventory Management through RF/Barcode support then Warehouse Management Systems to highly automated warehouses material handling equipment integration It is possible that within any given organization, there may be warehouse facilities that require only basic inventory control, while others require full Warehouse Management. It is important to have a system that provides deployment options that support this progression while simultaneously delivering a unified view of Inventory. Due to the issues discussed earlier, may organizations opt to stop at the Basic Inventory system included in their ERP or simply to add to this RF / Barcode capabilities. This can improve accuracy of the existing transaction, without introducing the added complexity integrating with an entirely new WMS system. However it can introduces complex support and upgrade issues. Manual Inventory Record transactions and track balances Low Small Transaction Velocity / Volume Large

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

A Need for Change Leading Business Trends
Fulfillment Processes Integrated with Partners Support All Company Processes (e.g. Service, Mfg) Automated Material Handling for Improved Productivity Mobile and Automatic Data Capture (e.g. RF, RFID) Streamlined Material Flow (e.g. Cross-Docking) These are the goals that we set to address the business need is this space: INCREASED EFFICIENCY: Improving the speed that inventory flows through your supply chain, has a dramatic affect in the bottom line. This requires eliminating any latency between the actual inventory transaction, and the reflection of that transaction in all aspects of the system. This must be achieved while simultaneously increasing Accuracy. Efficiency can also be increased by ensuring that the Best Practices for YOUUR warehouse are always followed. This is best achieved by ensuring that they are automated. This could include the rules associated with picking or put away, the way replenishment is handled, how work is organized and dispatched to the work force, etc. SEAMLESS INTEGRATION : No matter how sophisticated or efficient a Warehouse System may be, it will be fatally flawed unless it is seamlessly integrated into the main transaction systems in real-time. This requires that the warehouse system both provides and operates on a single global view of inventory and that the processes of the supply chain are seamlessly integrated into that of the warehouse. This applies not only to all aspects of the internal systems, but also to connectivity to members of your extended supply chain. OPERATIONAL FLEXIBILITY : All Warehouses are different to some degree. These differences may be due to physical facts, product line differences, shipping methods, seasonal product lines, etc. Warehousing systems need to adapt to these differences and to be able to do so dynamically without the need for costly and time consuming customizations. Finally they need to be able to deploy Globally. This requires an architecture which is scalable; functionality such as multi-lingual support, multi-currency; multi-units of measure, etc.; and the ability for the entire system to be well supported world-wide.

How Delivers To address this need Oracle has introduced a solution that supplies this RF and Bar-coding support for the existing Oracle 11i Supply Chain Transaction set.

Foundation: Unified Information Architecture
Develop Contracts Market Common data model enables a single source of truth Comprehensive suite of applications designed to work together Robust set of integration services based on open standards Modular deployment by business flow Single global instance implementations Projects Sell HR Order Customers, Suppliers, Products, … Finance Plan The Oracle WMS solution has been designed to be an integral part of the overall Oracle e-Business Suite. It provides Warehousing Management from the Procurement, Manufacturing and Fulfillment aspects of the suite – and does so as a seamless extension to those functional areas. This was the message given to us by many of our existing customers. In response Oracle decided that to address the dual business needs of providing strong WMS functionality while at the same time addressing the challenges intrinsic to a bolt-on solution, the only approach was to build WMS functionality within the framework of the existing E-Business suite. And this is what we have done with Oracle WMS. Because Oracle Development was able to build on the strong foundation that already existed, it simplified and reduced the overall development effort. Unlike the bolt-on WMS vendors, Oracle did not need to create a separate infrastructure for security, transaction processing, installation, logging, reporting, etc. Instead, the same infrastructure that is used by the rest of the E-Business suite is directly used by Oracle WMS. This same ability to leverage existing strengths also applies to to the underlying Inventory model, which was already very strong. What changes were required for Oracle WMS were actually integrated and shipped with Oracle Application as part of the first 11i release in May 2001. Maintain Procure Service Make Fulfill Warehouse Management

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 Procurement Manufacturing Fulfillment MSCA & Warehouse Management And this logistics solution is fully integrated with all aspects of the E-Business Suite – providing logistics services, regardless of transaction source. Service Finance Planning

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, … 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. Built-in RF Middleware Mobile Transaction Server RF Base Station LAN or WAN Apps / Database RF Device Telnet Over TCP/IP SQL Net

What Do I get with . . . WMS Installed, WMS Organization MSCA LPNs
Cost Groups Rules Tasks Cartonization Exception Workflows MSCA Mobile User Interfaces for Inventory Receiving Shipping Manufacturing Quality Labeling

Tailorable Rules & Workflow Process
Oracle Warehouse Management Solution …or Provide a Complete Warehouse Execution System Label Receive Inspect Assemble RMAs Purchases Transfers Cross Dock Putaway Replen- ish Tailorable Rules & Workflow Process RF Support Cost Move Global Visibility RTVs Orders Transfers Ship Pack Directed Pick WIP Issues Count Transfer 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 Planning Purchasing Manufacturing Fulfillment

Oracle Warehouse Mgmt Solution
Enables you to… Support Lower Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise We are now going to drill down on some of the main design goals of Oracle WMS. We will start with the need to satisfy YOUR requirements without the need to Customize the solution.

Rules-Driven Processes Flexibly Meet Needs without Customization
User Defined Strategies & Rules (e.g. > 30 Days Shelf Life) Suggestions (e.g. LPNs or Locators) Transaction (e.g. Pick) Support for: Directed Picking, Directed Put-away, Tasks Assignment, Costing, Labeling Eliminates customizations Supports common tool with examples Easily changed and evolved Improves ROI and ongoing support Accelerates implementation Increases long-term flexibility Oracle Applications is already highly flexible through the use of numerous setup and configuration options. However, due to the variance in the needs of each WMS implementation, and the challenges this has traditionally posed for WMS products, Oracle decided that an additional level of flexibility was required. The WMS Rules Engine is the vehicle that provides this flexibility throughout the Oracle WMS application. The areas it supports are: Directed Put Away – what is the optimal location or locations for this put away Directed Picking – what is the optimal source for this pick Automated Task Management – who should do this next task Compliance Labeling – which label format should I print and when Cost Group Assignment – what inventory accrual account should I use for this inventory holding

Additional Ways to Avoid Customization
Characteristics Benefits Same application for all certified devices Automatically adapts to any form factor Maximum flexibility of RF device selection Lower support costs RF Device Independence User definable fields Use throughout WMS (UI, Rules Engine, etc.) Flexible interfaces Support your specific data needs Lot & Serial Attributes Oracle Applications is already highly flexible through the use of numerous setup and configuration options. However, due to the variance in the needs of each WMS implementation, and the challenges this has traditionally posed for WMS products, Oracle decided that an additional level of flexibility was required. The WMS Rules Engine is the vehicle that provides this flexibility throughout the Oracle WMS application. The areas it supports are: Directed Put Away – what is the optimal location or locations for this put away Directed Picking – what is the optimal source for this pick Automated Task Management – who should do this next task Compliance Labeling – which label format should I print and when Cost Group Assignment – what inventory accrual account should I use for this inventory holding

Cost-Effective Global Deployment Think Locally, Act Globally
Deploy and manage on a single global instance Support with single worldwide organization Support for statutory and customary local requirements Multi-lingual, multi-currency, multi-org, multi-national capabilities 30 languages, all installable in same unicode instance Support Cost-Effective Global Deployment Today’s E-Business environment requires global operation across the full supply chain. Unfortunately many WMS products must be deployed as point solutions to service a single warehouse, with functionality and support targeted at a specific market and geographies. This inevitably leads to information fragmentation, increased hardware costs, and support challenges. In contrast, Oracle WMS, together with the rest of the E-Business Suite and the Oracle Corporation, has been designed from the outset to satisfy both the functional and operational requirements for cost-effective global deployment. Reduce operational cost through deploying and managing the application on a single global instance Reduce RF hardware and middleware costs by built-in, device independent RF support Support global business needs using multi-lingual, -currency, -organization, & local functionality capabilities Improve global inventory management through a single, real-time global view of all inventory Simplify the support process by dealing with a single World-Wide Support organization

Improve Warehouse Mgmt Functions Increase Efficiency of All Resources
Warehouse Efficiency Worker Productivity Resource Utilization Inventory Utilization Automate Warehouse Processes Optimize Task Assignments Reduce Worker Travel Time Optimize Total Warehouse Space Maximize Use of Equipment Optimally Locate Inventory to Reduce Travel Time Reduce Inventory Carrying Costs Streamline Material Flow Reduce Inventory Obsolescence Automate Replenishment 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.

Worker Productivity Automated Task Management Create, Organize, Dispatch Tasks to Optimal Resource Pick Wave Task Queue Create & Allocate Task Split Merge Sort 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.

Automated Compliance Labeling Meet Customer Specific Requirements
Support Numerous Types and Variations of Labels LPN, LPN content, LPN summary, material, serial, location, shipping, shipping contents, WIP contents Flexible to Meet Your Business Needs Design and rendering choices Highly flexible configuration Adapts to changing requirements Data Transmitted via XML directly to printer or via middleware of choice Compliance labeling permits the integration with barcode labeling software such as Loftware, Formscape and Acellio. The WMS Rules Engine may be used to select the most appropriate label format from a user defined library of formats. This highly flexible approach can eliminate costly and time consuming manual processes – both for internal labeling needs and the increasingly complex requirements for customer compliance labeling. Formats Created with Third Party Label Design Software Automate label printing (correct format, place, & time), Eliminates costly manual processes to Meet customer needs These are the requirements which decide which label is printed when and where in the process. Oracle WMS and MSCA supports label printing through an Integration Kit to 3rd Party Label Printing Software. The 3rd party software is used as part of the setup process to design the label formats including types of barcodes to use, placement of barcodes, specific printer configurations, etc. The WMS Labeling setup consists of registering the label format designed in the 3rd Party software, assigning printers, and specifying which labels to print at what time and using which format. These steps will be detailed later. A label print request is generated in WMS through either a manual label request form, or automatically in the course of a standard business flow (ie Receiving or Ship Confirm). WMS determines the appropriate printer to use (printers are assigned to Label Type by Site/Responsibility/Department/Subinventory/Equipment/User) as well as the optimal format (using the Oracle WMS Rules Engine). WMS creates a print request as an XML message including variable data, printer name, number of copies, and label format to use. Finally, the 3rd Party Software receives the XML message and processes the print request. Print at the Right Time in the Correct Format

Barcode & License Plate # Support Perform Complex Inventory Transactions
Multiple Packages and Products Single Unique Number for All Information = Barcode Support Automatically Track All Related Product Information Capture All Information with a Single Scan Container and LPN* Support Supports Infinite Nesting Levels Perform Complex Moves via a Single Scan Fully Integrated with ASNs A License Plate Number, or LPN, is a unique number that can be assigned to any arbitrary group of inventory. The system maintains what is contained within the LPN, including all item, lot and serial information. Usually, the LPN is printed as a barcode label which is applied to a container which contains the items. Thereafter, the LPN may be used to receive, move, count, pick or ship all of the LPN contents - all by just scanning a single number. LPN’s may also be nested one within the other, to any depth. For example, a LPN could represent pallet and within that there could be other LPN’s for each carton; within these other LPN’s could represents boxes, etc. Transactions may then be performed by using any of the LPN’s at any level - and all of the contents at that level and below would be transacted. The LPN numbers may either be system generated on demand, preprinted on labels and scanned, or received from a supplier. LPN information may also be received on Advanced Shipping Notices (ASN’s). This permits the receiving process to be greatly accelerated - essentially by scanning a single LPN. LPN’s provide a powerful tool to dramatically reduce transaction processing complexity. Unlike LPN’s, which represent temporary or virtual groupings of items, containers are items themselves which represent actual physical containers such as totes, pallets, tugs, etc. Typically an LPN, which represents the items, would be associated with a container, while that container is being used in the inventory movement. Once the LPN was shipped, the container might be returned to inventory. Reduces Cycle Time & Improves Accuracy Improves Efficiency, Accuracy, and Tracking *License Plate Number

Cross-Dock and Direct Ship Selectively Accelerate Warehouse Material Flow
Receive Inspect Deliver Put-Away Pick Release Pick Drop Ship Inventory Direct Receipt Direct Ship Configurable flows Express ASN receipt Cross-docking Express picks & load Direct ship Adjust implementation to business Accelerate receiving process Reduce handling and inventory Increase operator efficiency Support lean mfg processes Also supports express ASN receipt, load and pick

RFID Middleware(Oracle AS) Response & Exception Handling
RFID-Initiated Shipping & Receiving Process Transactions with No Manual Intervention RFID Middleware(Oracle AS) (3) Interface to readers, clean and filter data, then pass IDs to application (4) Access objects associated with the ID's (e.g. LPN's on ASN) then raise correct Business Event (1) Load of pallets and / or cartons with RFID tags on each (2) Drive load through RFID Reader in Receiving Dock RFID Event Processor (5) Access associated source document (e.g. the PO’s ASN) (6) Process the Business Event, (e.g. Receipt of pallet or carton) Application APIs 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

Directed Picking and Put Away Automatically Suggest Optimal Locators
Resource Utilization Directed Picking and Put Away Automatically Suggest Optimal Locators Receipt Locator Locator Pick Locator Business Logic Slot dynamically based on velocity, size, etc. Control hazardous materials / co-mingling Handle task exceptions with reason codes Optimize the use of storage locations Minimize inventory fragmentation Reduce chance of obsolescence Without a WMS system, the process by which locators are selected for picking or put away is often the result of simple rules of thumb or “tribal knowledge”. This can lead to significant training issues, inventory obsolescence, and inventory fragmentation. Directed Picking and Put away is the process by which Oracle WMS suggests locations based on business process rules, which are defined by the user in the WMS Rules Engine. These rules may be as simple or as complex as required to address the business needs of the situation. For example, a pick rule could require that for this particular customer delivery location, on this day, for this item category, a lot with at least a certain number of days before expiration should be preferred - and that the entire order line should be satisfied by a single lot. A put away rule could require that a receipt should first be used to replenish the forward pick location and then placed in an open slot in the hazardous material area which has enough space to fit the remaining quantity, and located as close as possible to the same item. And so on … Directed Picking and Put away, together with the WMS Rules Engine, will enable the automatic implementation of the specific “best practices” for the warehouse. This will yield savings in training, storage utilization and inventory obsolescence.

Inventory Utilization
Advanced Inventory Capabilities Provide Single Source of Truth for All Inventory Maintain Accurate, Real-Time Information Physical inventory measurement Holding and other associated costs Cycle counting Manage Inventory Levels Automated replenishment Kanban management Transfers between facilities Support Advanced Tracking Capabilities Material status control Inventory ownership tracking Advanced lot and serial control Material Status Control Automatically control allowable transactions by status. Reduces shipment and handling errors. Material Status is analogous to “Item Type” - but represents the stage in a lifecycle of an item instance. For example, a lot of an item could have a status that indicates that has just been manufactured and is “immature” and needs to “cure” before it can be sold. Each Material Status can have a set of allowed or disallowed transactions. In this example, the “immature” item could be moved to another warehouse, but not sold to a customer. Advanced Lot and Serial Control User-configurable lot and serial attributes - Lot and Serial Attributes may be enabled (and different) by Item or Item Category. Each Attribute can have specific validation logic associated with it. These attributes look and behave like regular fields in the mobile user interface. Typical uses of Lot and Serial attributes are “Grade”, “Secondary Serial”, “Country of Origin”. These attributes may be used in the WMS Rules Engine to control Directed Picking. Store additional information No need to customize Split/Merge Lots Maintain genealogy Effective tool in event of recall Inventory Ownership Tracking Provides visibility to ownership automatically at receiving Automated Replenishment Supports both inventory, MRP, dynamic and direct from receiving System Initiated Dynamic Replenishment Min/Max for Zone replenishment Kanban for packaging materials Reorder Point to establish safety stocks APS for planning entire organization Replenishment direct from Receiving Operator Initiated Manual move transactions Cycle Counting Dispatched and interleaved Cycle Counting with multiple approval options for adjustments Cycle Count are dispatched as task to a mobile user who is eligible to perform a cycle count task. Physical Inventory Complete physical inventories on mobile devices with multiple approval options for adjustments Kanban Management Supports both internal and external supplier kanbans Transfers between Facilities Facilitates transfer between organizations via inventory based transfer and internal requisition mechanism ABC Analysis Select from multiple ranking criteria with flexible ABC classification

Performance Management Tools Proactively Manage Warehouse Performance
View current status, perform transactions and calculate availability via Materials Workbench Monitor and refine facility activity via Control Board Provide real-time status with active alerts and notification messaging Handle last minute changes with workflow exceptions Keep key personnel informed with multiple reporting options While users are on the floor performing their material movement tasks, Oracle WMS provides a workbench from which a materials manager can track their progress. This workbench, the WMS Control Board, allows the warehouse manager to view, reassign and reprioritize tasks. The manager can also see the status of each task, including the time at which it was dispatched to a user, the time it was picked up and the time it was dropped in staging. If any errors occurred in processing the task the user has full visibility to the error reported and the tasks current status. The user also view summary information on the tasks in graphical format.

Collaboration & Event Management Integrated Planning & Execution
Comprehensive Logistics Solution Integrated Logistics Adapts to Changes Carriers / 3PLs Global Customers Collaboration & Event Management Pack & Ship Book / Tender Manage Wrhs Pick & Label 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

Planning (Plan & Monitor) Warehouse (Store & Manage)
Comprehensive Logistics Solution Enables Cross-Functional Process Optimization Planning (Plan & Monitor) Warehouse (Store & Manage) Inventory Optimization Supply / Demand Matching Dynamic Rerouting & Drop Ship Stage & Cross Dock Planning Capabilities Network Definition: Define all characteristics of the distribution network Specify details such as lanes, distribution centers, etc. Supply Chain Planning: Supply & demand planning across the entire network Optimize inventory including postponement Transportation planning (plan loads, optimize modes / carriers, configure loads Transportation Execution Capabilities Freight rating, automated mode/carrier selection Load tendering, shipment pickup requests Global track and trace, settlement Warehousing Capabilities Automated, tailorable warehouse functions (pick, pack, returns) RF barcoding support Advanced inventory management capabilities Event Management Capabilities (Supported by the entire Logistics solution) Monitor shipments Handle exceptions Notify all trading partners Support for Vendor Managed Inventory Transport (Move & Track)

WMS and Manufacturing Extends Beyond Sales Order Inputs
Solution Integration Enables: Task-managed component picks Cross-dock to / from manufacturing Directed ship from manufacturing Compliance labeling LPN and lot / serial creation and tracking Supports Full Spectrum of Tasks: Simple kitting to full BOM / work order jobs Seamless CTO flow Sales Orders Manufacturing Processes WMS Solution

WMS and Service / Spares Integrate all Inventory Transactions
Warehouse Mgmt Manage high volume DC operations (pick, pack and ship) with WMS and leverage internal orders to release parts to the field Distribution Center Provide a single, common view of all inventory Integrate and manage internal and field inventory locations Consolidate / coordinate all field requests to maximize DC efficiency No other vendor has the solution to centrally manage a single view of all local / field deployed inventory. Regional / Field Warehouses Field Technician Stock Service / Spares Mgmt

Integrated Throughout Entire Offering… Business Intelligence

Deliver Daily Business Intelligence Real-Time Access to Complete Business Information
What is my inventory accuracy for all products? What are my labor costs for each warehouse? What are my book-to-ship and receipt-to-putaway cycle times? How is my warehouse space utilization changing? How are inventory turns and quantities changing? Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance Manage By…

Mfg & Inventory Intelligence: Timely, Accurate, Relevant
Flexible Time Periods Flexible Comparisons Daily updates on key performance indicators Actionable information on savings and incremental revenue opportunities At a glance: Inventory quantity and turns Inventory accuracy Pick-to-ship cycle time Warehouse labor costs Real-Time Results Oracle’s integrated intelligence is easy to use and can be designed to meet your key business processes. You can provide portal access to any employee or trading partners outside your company so all involved parties can monitor and measure performance. With this easy to use portal, you can provide reports, analysis, and graphs – or any other means to highlight performance measures. Links Performance Measures Reports Graphs

Oracle Warehouse Management Solution
Single global instance, mobile applications, built-in integration, barcode and RF capabilities Support Lower Cost of Ownership Optimized space and warehouse utilization, improved worker productivity, flexible process flows, monitoring and mgmt capabilities Increase Warehouse Efficiency Satisfy Requirements Without Customization Simplify implementation by using the WMS Business Rules Engine to configure all key WMS processes Support inter- and intra- organizational and differences via organizational and zone specific strategies and rules Support customer specific requirements through compliance labeling and picking preference strategies and rules Automatically adjust the system behavior by season, day of week, etc. through business rule effectivities Automate Warehouse Operations Increase efficiency and reduce errors through the use of mobile RF, barcodes, LPN’s & Material Handling Equipment integration Reduce training and management costs through the use of automated task management Improve inventory and space utilization through directed picking and put away Increase inventory velocity through cross-docking support (from Receiving or from Manufacturing completions) Automate exception handling via Oracle Workflow Unify WMS with Complete SCM solution: Eliminate all time and costs for integration development through use of “Built-in” integration architecture Reduce RF hardware and middleware costs by built-in, device independent RF support Simplify ongoing operation and support by eliminating all latency, reconciliation and system interface issues Simplify receiving, picking, returns, shipping by leveraging common processes across all Supply Chain systems Support in-warehouse value added services (kitting, dekitting) and other manufacturing deferment processes (CTO, ATO, etc.) Optimize distribution of inventory through moves automatically generated by Oracle APS Supply Planning Support Cost-Effective Global Deployment Reduce operational cost through deploying and managing the application on a single global instance Support global business needs using multi-lingual, -currency, -organization, & local functionality capabilities Improve global inventory management through a single, real-time global view of all inventory Simplify the support process by dealing with a single World-Wide Support organization Integrate WMS Throughout the Enterprise Out-of-the-box integration, full logistics support for all SCM flows

Oracle Warehouse Management Products
Develop Contracts Market Projects Sell Customers, Suppliers, Products, … HR Order Finance Plan Inventory Management Warehouse Management Mobile Supply Chain Applications Logistics Intelligence Maintain Procure Service Make Fulfill What kind of warehouse system do you need? This is determined by a combination of factors. These can be generalized into a combination of Complexity and Velocity or Volume. Measures of complexity include the nature of the product (high value, complex lot & serial control), the nature of the orders (complex product mix), the nature of the fulfillment process (kitting, CTO, ATO), or specific or regulatory needs for accuracy. Measures of Velocity or Volume include orders per day, warehouse size, different SKU’s handled, number of users, etc. As either of these increase, the demands placed on the warehouse system increase. From ManuaL Inventory Management through RF/Barcode support then Warehouse Management Systems to highly automated warehouses material handling equipment integration It is possible that within any given organization, there may be warehouse facilities that require only basic inventory control, while others require full Warehouse Management. It is important to have a system that provides deployment options that support this progression while simultaneously delivering a unified view of Inventory. Due to the issues discussed earlier, may organizations opt to stop at the Basic Inventory system included in their ERP or simply to add to this RF / Barcode capabilities. This can improve accuracy of the existing transaction, without introducing the added complexity integrating with an entirely new WMS system. However it can introduces complex support and upgrade issues.

Evolution of Oracle Logistics
Base Differentiators… New in 11i.9… New in 11i.10… Built-in, not bolt-on - RF/mobile technology & transaction integration Flexible rules-based processes Configurable material flows Inbound logistics – receiving, inspections, directed put-away, cross docking, ASN Outbound logistics – dock assignment, pick wave selection, picking methods, cartonization / packing, shipment execution, trip & delivery planning Advanced inventory mgmt – container & LPNs, lot/serial genealogy, status, Kanban Reverse logistics – RMA receiving, supplier returns, refurbishment & recycling VMI & consigned inventory Task & labor plng control board Delivery consolidation by locator and / or LPN Cluster picking & WIP picking eAM component picking UPC & smart barcode support Single mobile UI for all receiving transactions Additional material handling equipment integration Simplified rules engine def’n and examples library Load tendering Online tracking of ship status Carrier selection & freight rating Automated shipping processes Non-conformance mgmt Configurable picking & streamlined shipping UI’s RFID-based transactions UCC 128 / UCC 14 support Work-plan based put-away Catch weight support Packing workbench Over picking & bulk picking Inbound transport logistics Freight payment & audit Delivery consolidation Truckload rating Transportation planning – load consolidation, continuous moves, automated mode and carrier selection International drop shipments Logistics-related analytics/KPIs What kind of warehouse system do you need? This is determined by a combination of factors. These can be generalized into a combination of Complexity and Velocity or Volume. Measures of complexity include the nature of the product (high value, complex lot & serial control), the nature of the orders (complex product mix), the nature of the fulfillment process (kitting, CTO, ATO), or specific or regulatory needs for accuracy. Measures of Velocity or Volume include orders per day, warehouse size, different SKU’s handled, number of users, etc. As either of these increase, the demands placed on the warehouse system increase. From ManuaL Inventory Management through RF/Barcode support then Warehouse Management Systems to highly automated warehouses material handling equipment integration It is possible that within any given organization, there may be warehouse facilities that require only basic inventory control, while others require full Warehouse Management. It is important to have a system that provides deployment options that support this progression while simultaneously delivering a unified view of Inventory. Due to the issues discussed earlier, may organizations opt to stop at the Basic Inventory system included in their ERP or simply to add to this RF / Barcode capabilities. This can improve accuracy of the existing transaction, without introducing the added complexity integrating with an entirely new WMS system. However it can introduces complex support and upgrade issues.

Customer Case Studies So how is it going …

Reduced inventory by $300K, expects to cut an additional $600K
Global manufacturer of insulated food and beverage containers, soft coolers, and lunch kits Live on 11i Warehouse Management, Order Management, Financials, E-Business Suite On Demand Saved $665K in one-time and $180K in annually recurring IT costs On track to save $6.2M through efficiency gains for 222% ROI Shortened monthly close from 6 days to 2 days “With more demanding on-time requirements, inventory accuracy is essential. With Oracle Warehouse Management we know exactly what product we have, and where, at any point in time and the accuracy level is so high that our auditors no longer require us to take a physical inventory." Mike Yeager, Director of Logistics Reduced inventory by $300K, expects to cut an additional $600K Raised warehouse labor productivity by 15%, expects to reach 29%

Increased small order picking productivity by 200-300%
Manufacturer, sells and distributes quality informal tableware, cookware and mugs Headquartered in the UK with operations in Europe, North America, Australia, Asia, Live on 11i Warehouse Management, Procurement, Financials, Human Resources Chose Oracle WMS to streamline supply chain execution from manufacturing to shipment Goal: achieve 100% paperless warehouse Increased small order picking productivity by % Ship 30% more product without an increase in headcount Increased inventory accuracy to over 99%

Oracle Warehouse Management
Support Lower Total Cost of Ownership Increase Warehouse Efficiency Integrate WMS Throughout the Enterprise 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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Oracle Warehouse Management

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