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Oracle

Warehouse
Management

Mark Mandeville

Sr. Solution Consultant

Warehouse Management At-a-Glance


Internal
Processing

Inbound

Purchases
Mfg / Assembly
Transfers
Outside Processing

Pick
Pack
Inspection
Count

Assembly
Storage
Move
Replenish

Outbound

Customer Shipments
Vendor Returns
Transfers
Outside Processing

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

Product / Order Complexity

High

Low

Highly Automated Facilities


Automate physical inventory handling

bi
a
p
Ca

s
ie
li t

Warehouse Management
Implement a true execution system using
system directed tasks and task management

RF / Barcode Only
Improve accuracy and reduce latency
of existing transactions

Manual Inventory
Record transactions and
track balances

Small

Transaction Velocity / Volume

Large

Business Pressures
Just-in-Time Delivery

Guaranteed Availability

How can I improve the speed


of warehouse operations?

How can I improve order


promise accuracy?

How do I integrate operations


to reduce order processing
time?

How do I create a global


view of inventory?

Inbound

Internal
Processing

Outbound

One Size Fits One

Lowest Total Cost

How can I manage


SKU proliferation?

Where can I reduce


inventory while maintaining
high fill rates?

How do I ensure
labeling compliance?

How do I improve labor


efficiency?

Operational Challenges
Procurement

Manufacturing

Order Management

Warehouse
System 1

Warehouse
System 2

Warehouse
System N

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)

How
Delivers

Foundation:
Unified Information Architecture
Develop
Contracts

Market

Projects
HR
Finance

Sell
Order

Customers,
Suppliers,

Plan

Products,

Procure

Maintain

Make

Service

Fulfill
Warehouse
Management

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

Support for the Integrated Enterprise


Built-In, Not Bolt-On Functionality

Procurement

Manufacturing

Fulfillment

Eliminate
Integration
Reduce Cost
and Complexity

MSCA &
Warehouse
Management

Service

Finance

Reduce Risk and


Upgrade Issues

Planning

Eliminate
Problems with
Reconciliation
Simplify Support

Oracle Mobile Supply Chain Apps (MSCA)


Support Basic Warehousing Needs
Built-in Mobile User Interface
Mobile Manufacturing

Mobile Quality

Moves, Issues, Returns,

Quality Collections,
Specifications,

Scrap, Completions,
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
RF Base
Station

RF Device

Mobile
Transaction Server
Apps /
Database

LAN or WAN

Telnet Over TCP/IP

SQL Net

What Do I get with . . .


WMS Installed, WMS Organization
MSCA
Mobile User Interfaces for
Inventory
Receiving
Shipping
Manufacturing
Quality
Labeling

LPNs
Cost Groups
Rules
Tasks
Cartonization
Exception
Workflows

Oracle Warehouse Management Solution


or Provide a Complete Warehouse Execution System
Label
RMAs
Purchases
Transfers

Cross Dock
Receive
Putaway
Inspect
RF Support
Global

RTVs
Orders
Transfers

Ship

Assemble

Cost

Visibility
Pack

Directed
Pick

WIP
Issues

Tailorable
Rules &
Workflow
Process

Seamless
Integration

Purchasing

Manufacturing

Move

Count
Transfer

Planning

Replenish

Fulfillment

Oracle Warehouse Mgmt Solution


Enables you to

Support Lower Cost of Ownership


Increase Warehouse Efficiency
Integrate WMS Throughout the Enterprise

Rules-Driven Processes

Flexibly Meet Needs without Customization

Transaction
(e.g. Pick)

User Defined
Strategies & Rules

(e.g. > 30 Days Shelf Life)

Suggestions
(e.g. LPNs
or Locators)

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

Additional Ways to Avoid Customization


Characteristics
RF Device
Independence

Benefits

Same application for

Maximum flexibility of

all certified devices

RF device selection

Automatically adapts

Lower support costs

to any form factor

Lot & Serial


Attributes

User definable fields

Flexible interfaces

Use throughout WMS

Support your specific

(UI, Rules Engine, etc.)

data needs

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

Oracle Warehouse Mgmt Solution


Enables you to

Support Lower Cost of Ownership


Increase Warehouse Efficiency
Integrate WMS Throughout the Enterprise

Improve Warehouse Mgmt Functions


Increase Efficiency of All Resources
Warehouse Efficiency
Worker Productivity

Resource Utilization

Inventory Utilization

Automate Warehouse
Processes

Optimize Total
Warehouse Space

Optimize Task
Assignments

Maximize Use of
Equipment

Reduce Worker Travel


Time

Optimally Locate
Inventory to Reduce
Travel Time

Reduce Inventory
Carrying Costs
Streamline
Material Flow
Reduce Inventory
Obsolescence
Automate
Replenishment

Worker Productivity

Automated Task Management

Create, Organize, Dispatch Tasks to Optimal Resource


Task Queue

Pick Wave
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

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
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

Reduces Cycle Time &


Improves Accuracy

Container and LPN* Support


Supports Infinite Nesting Levels
Perform Complex Moves via a
Single Scan
Fully Integrated with ASNs

Improves Efficiency,
Accuracy, and Tracking
*License Plate Number

Cross-Dock and Direct Ship

Selectively Accelerate Warehouse Material Flow


Cross-Dock

Receive

Inspect

Deliver

Put-Away

Inventory

Direct Receipt

Configurable flows
Express ASN receipt
Cross-docking
Express picks & load
Direct ship

Pick
Release

Pick

Drop

Ship

Direct Ship

Adjust implementation to business


Accelerate receiving process
Reduce handling and inventory
Increase operator efficiency
Support lean mfg processes

RFID-Initiated Shipping & Receiving


Process Transactions with No Manual Intervention

(1) Load of pallets and /


or cartons with RFID
tags on each

RFID
Middleware
(Oracle AS)

(3) Interface to readers,


clean and filter data,
then pass IDs to
application

RFID Event
Processor

(4) Access objects


associated with the
ID's (e.g. LPN's on ASN)
then raise correct
Business Event

(5) Access associated


source document
(e.g. the POs ASN)

Application
APIs

(6) Process the


Business Event,
(e.g. Receipt of
pallet or carton)

(8) Putaway, rescan


or divert
material

Response
& Exception
Handling

(7) Confirm success or


failure (e.g. trigger
green light or sound
buzzer)

(2) Drive load


through RFID
Reader in
Receiving Dock

Resource Utilization

Directed Picking and Put Away


Automatically Suggest Optimal Locators

Locator

Receipt

Locator
Pick

Slot dynamically based

on velocity, size, etc.


Control hazardous
materials / co-mingling
Handle task exceptions
with reason codes

Business
Logic

Locator

Optimize the use of


storage locations
Minimize inventory
fragmentation
Reduce chance
of 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

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

Oracle Warehouse Mgmt Solution


Enables you to

Support Lower Cost of Ownership


Increase Warehouse Efficiency
Integrate WMS Throughout the Enterprise

Comprehensive Logistics Solution


Integrated Logistics Adapts to Changes

Carriers /
3PLs

Global
Customers
Collaboration &
Event Management

Inbound
Supply
Source

Plan

Rate

Book / Manage Pick &


Tender Wrhs
Label

Pack &
Ship

Track

Settle

Integrated Planning & Execution


Continuous
Improvement

On-Time
Performance

Customer
Satisfaction

Carrier
Analysis

Outbound
Demand
Destination

Comprehensive Logistics Solution


Enables Cross-Functional Process Optimization
Planning
(Plan & Monitor)

Inventory
Optimization

Dynamic
Rerouting
& Drop Ship

Supply /
Demand
Matching

Transport
(Move & Track)

Warehouse
(Store & Manage)

Stage &
Cross Dock

WMS and Manufacturing


Extends Beyond Sales Order Inputs

Solution Integration Enables:


Sales
Orders

Manufacturing
Processes

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
WMS Solution

order jobs
Seamless CTO flow

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


Regional / Field Field Technician
Warehouses
Stock

Service / Spares Mgmt

field inventory locations

Consolidate / coordinate all field


requests to maximize DC efficiency

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
How are inventory

Manage By

space utilization changing?

turns and quantities changing?


Objective: Set institutional targets
Fact: Provide performance-based metrics
Exception: Continuously evaluate performance

Mfg & Inventory Intelligence:


Timely, Accurate, Relevant
Flexible
Time Periods

Flexible
Comparisons

Daily updates on
key performance
indicators

Real-Time
Results

Performance
Measures

Reports

Links

Actionable
information on
savings and
incremental
revenue
opportunities
At a glance:

Graphs

- Inventory quantity
and turns
- Inventory accuracy
- Pick-to-ship cycle time
- Warehouse labor costs

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

Out-of-the-box integration, full


logistics support for all SCM flows

Integrate WMS
Throughout the
Enterprise

Oracle Warehouse Management Products


Develop
Contracts

Market

Projects
HR
Finance

Sell
Customers,
Suppliers,
Products,

Order
Plan

Procure

Maintain
Service

Fulfill

Make

Inventory
Management
Warehouse
Management
Mobile Supply Chain
Applications
Logistics Intelligence

Evolution of Oracle Logistics


Base Differentiators
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

New in 11i.9
VMI & consigned inventory
Task & labor plng control board
Delivery consolidation by

New in 11i.10
Configurable picking &

streamlined shipping UIs


RFID-based transactions
UCC 128 / UCC 14 support
locator and / or LPN
Cluster picking & WIP picking
Work-plan based put-away
eAM component picking
Catch weight support
UPC & smart barcode support
Packing workbench
Single mobile UI for all
Over picking & bulk picking
receiving transactions
Inbound transport logistics
Additional material handling
Freight payment & audit
equipment integration
Delivery consolidation
Simplified rules engine defn
Truckload rating
and examples library
Transportation planning load
Load tendering
consolidation, continuous
Online tracking of ship status
moves, automated mode and
Carrier selection & freight rating carrier selection
Automated shipping processes International drop shipments
Non-conformance mgmt
Logistics-related analytics/KPIs

Customer
Case Studies

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%

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 200-300%


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

Thank You!

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