1. IntelliTrack ® WMS An Overview and Approach Powerful, Full Featured, Affordable

2. IntelliTrack WMS Agenda WMS Basics Top Three Warehouse Problems Benefits of a WMS Implementation of a WMS

3. IntelliTrack WMS Warehouse Basics Majority of problems in a warehouse occur due to lack of CONTROL: Inventory Operation Management... A WMS is the solution. It has the capability to optimize the warehouse and warehouse operation. It is an operating tool that is based on the needs of a warehouse operation and provides for its management.

4. IntelliTrack WMS Warehouse Basics A WMS is the integration of these enabling technologies: Bar Coding Radio Frequency Technology Hardware (PC & Network) Software –WMS Functions –Other

5. IntelliTrack WMS Warehouse Basics Bar Coding –Labor reduction (no keying) –Data acquisition accuracy Scanning RF Validation

6. IntelliTrack WMS Warehouse Basics Radio Frequency –Information availability Real time updates NO information delay (ZERO lead times) –Labor pacing Directed puts & picks –Material tracking Locator verification Cycle counts

7. IntelliTrack WMS Warehouse Basics Software (Management) –Employee transaction activity logs –Item/product history log –Report generation –Terminal Messaging –System security –Host Interface: Import & Exports

8. IntelliTrack WMS Warehouse Basics WMS software supports the basic five operations in a warehouse Receive Product Store Product Pick Product Ship Product Inventory Management

9. IntelliTrack WMS Warehouse Basics - RECEIVING Receiving Stage Purchased items Finished goods Returns

10. IntelliTrack WMS Warehouse Basics - PUTAWAY Receiving Stage Final Location Build/Move Pallet QA Location & lot control Cross dock Basic space management

11. IntelliTrack WMS Warehouse Basics - PICKING Warehouse Location Truck/Carrier 1

12. IntelliTrack WMS Warehouse Basics – PICKING & Ship Confirm (2 step) Shipping Stage/Packing Warehouse Location Truck/Carrier 1 2 Raw material WIP picking Finished goods Products Pallets

13. IntelliTrack WMS Warehouse Basics IT WMS provides for: Accurate Receiving –Validation to PO –FIFO and Lot Tracking –Immediate update and accessibility –Available to Putaway queue –Blind receiving –Build & Move Pallets –Serial # Tracking –Cross Docking

14. IntelliTrack WMS Warehouse Basics IT WMS provides for: Accurate Picking –Validation to Sales order –Confirm Item and Location –FIFO and Lot Tracking –PreRoute Picking Minimize travel –Primary location –Record Activity in Locator System –Batch/Wave Picking

15. IntelliTrack WMS Warehouse Basics IT WMS provides for: Inventory and Storage Control –Stock locator –Quantity by location –Cube – Space management –Lot number by location –Serial # Tracking –Counts: Cycle and Physical Update immediately –Replenishment points and quantity –Directed moves/transfers (re-warehousing) –Real Time updates of all item activity

16. IntelliTrack WMS Warehouse Basics IT WMS provides for: Shipping –Routing to specific shipping lanes –Packing slip –Bill of lading generation –ASN to customer –Packing validation –Manifesting –Billing information

17. IntelliTrack WMS Top THREE Warehouse Problems INVENTORY INACCURACY Results: Lost Sales Back Orders Excessive Inventory Missed Schedules Low Labor Productivity Excessive Expediting Excessive Freight Costs High Obsolescence

18. IntelliTrack WMS Top THREE Warehouse Problems INVENTORY INACCURACY Resolution: Physical Counting Cycle Counting Confirm Location Confirm Item Require Accountability

19. IntelliTrack WMS Top THREE Warehouse Problems POOR PICKING INFORMATION Results: Too Much Information Not Printed In Shortest Path Sequence Hand Written Confirmation Print is Difficult to Read Non- Standard units Quantity

20. IntelliTrack WMS Top THREE Warehouse Problems POOR PICKING INFORMATION Resolution: Paperless Picking –Frees the Picker’s Hands –Utilizes Shortest Path –Electronically Sorts and Traces Orders –Electronic Pick Confirmation –Increases Picker Productivity

21. IntelliTrack WMS Top THREE Warehouse Problems POOR SLOTTING The placement of a product in a facility for the purpose of material handling and efficiency. Thompkins & Associates May 1999

22. IntelliTrack WMS Top THREE Warehouse Problems PROPER SLOTTING WILL: Minimize Travel Distance Reduce Labor Requirements Improve Throughput Minimize Replenishment Increase Picker Productivity Increase Picker Accuracy

23. Lower Fixed Labor Costs –Operator NOT searching for product or open space –Optimized picking path –Slotting –No manual data collection Reduced Inventory Costs –Eliminate excess/safety inventory (25 - 30%) –Physical count costs are reduced by 30 to 60% –Moving to cycle counts –Reduction in inventory write-offs IntelliTrack WMS WMS Benefits Summary

24. Reduced Data Errors and Its Associated Cost$ –NO data entry Better Quality Control –Warehousing & Manufacturing –Lots & FIFO –No production overruns –No production disruption due to material outages IntelliTrack WMS WMS Benefits Summary

25. Improved Customer Service –Current status –No backorders –Lost sales due to inaccurate inventory Competitiveness –Cheaper –Faster –Satisfied clients IntelliTrack WMS WMS Benefits Summary

27. IntelliTrack WMS WMS Implementation Systems Requirements and Design Study (SRDS) –Blueprint for Success Configuration Enhancements Implementation Integration Training Cutover Support More 1.SRDS 2.Project Plan 1.Time Line 2.Milestones 3.Kick-off 4.Install Base WMS 5.Install RF Back-bone 6.Printers 7.Deliver Enhancements 8.Train User 9.Live – Cut-over