Oracle WM

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Warehouse Management Oracles Answer
NCOAUG - Chicago February 13, 2002
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Topics

• Speaker Background
• Why Bother With WMS?
• Quantifiable Improvements ROI
• Qualifiable Improvements
• Case Study Oracles Solution at Tenderheart
• Questions/Discussion

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Speaker Background Why am I here?

• Accomplishments
• Development for 2 separate WMS
• Experience 10 years in SCE
• Interface Development
• Including MHE
• Project Management
• Assessments
• Software Selection Studies (Right Fit)
• Supply Chain Strategy

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What is a WMS? Cant be that hard, right?
INVENTORY
Receiving
Shipping
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Total Logistics Cost
See next slide for a further breakdown
Source Collection of Multiple Studies and
DigiTerras Experience - Best Practice Data
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Total Warehouse Cost
Source Transportation and Distribution - Best
Practice Data
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WMS Benefits - Quantifiable

• Reduction of Inventory Carrying Costs
• 8 to 15
• Increased Inventory Turns
• Eliminate Some Safety Stock
• 100M Company
• 3 reduction in inventory achieves savings of
  500K
• Improved Space Utilization
• 10 to 40
• System Directed Putaways
• Enhanced Consolidation
• Cross-Docking Opportunities

Source Gartner Group / APICS
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WMS Benefits - Quantifiable

• Reduction of Scrap
• 13 to 30
• WMS Picking Logic through system monitored shelf
  life
• Reduction in Inventory Loss
• Reduction in Mis-Ships
• Better Utilization of Equipment
• 10 to 30
• WMS reduces idle time by
• balancing the workload more evenly
• 50-60 of warehouse workers time spent traveling
• WMS can reduce that to

10 to 20
Source Gartner Group / Global Logistics and
Supply Chain Strategies
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WMS Benefits - Quantifiable

• Picking Productivity Increases
• 16 to 25
• Optimized Picking route
• Use of Labor Standards
• Reduction in Customer Returns
• 11 to 25
• Less Picking Errors
• Productivity Improvements
• 10 to 25
• Optimize total workload
• Optimize work force task assignment

Source Gartner Group
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WMS Benefits - Quantifiable

• Rework Reductions
• 5 to 20
• System Management of Product Recovery
• Labor Savings
• 5 to 15
• Elimination of Redundant Data Entry
• Transportation Cost Savings
• 3 to 8
• Order Consolidation

Source Gartner Group
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WMS Benefits - Quantifiable

• Reduce Inventory Carrying Costs by Reducing
  Inventory Float Dollars
• 3 to 6
• Faster Receiving/Update reduces float
• dollars (inventory received, not yet recognized)
• Paperwork Reduction
• 10 to 20 cents per document
• Real-Time data Collection decreases paperwork
  transfers and many standard documents

Source Gartner Group
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WMS Benefits - Quantifiable Summary
Source Gartner Group
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WMS Benefits - Qualifiable

• Support for web-based order taking
• Support for web-based order status
• Improved visibility through entire organization
• More data, easily accessible and real time
• Increased competitive situation
• Facilitates collaboration between
  suppliers/you/customers
• Warehouse is last opportunity to manage customers
  expectations
• Take care of your product
• Dynamic customer requirements

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Tenderhearts goals accomplished through Oracle WM
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Tenderhearts goals accomplished through Oracle WM
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Summary of Improvement Goals

• Improved Customer Service
• Reduced Customer Errors
• Order Accuracy
• Complaints
• Damaged Sales
• Promises Kept
• Reduced Customer Lead Times
• Order Lead Time (Order Placement - Delivery Date)
• Real Time Visibility

Improved Customer Service
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Summary of Improvement Goals

• Reduced Operating Cost
• Reduced Labor Cost
• Worker Productivity
• Improved Space and Equipment Utilization
• Cube Utilization (Facility and Locations)
• Travel Distance
• Increased Capacity
• Fill Rate
• Inventory Accuracy by Location
• Reduce Capital Investments
• Increased Inventory Turns
• Carrying Cost (Cost of Money)

Reduced Operating Cost
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Summary of Improvement Goals

• Enhanced Performance Measurements
• Performance Information Systems
• Management Reporting Tools
• Productivity Tracking
• Distribution Statistics
• Operational Control System
• Real-time Visibility to Performance Concerns
• Warehouse Management Control Board

Enhanced Performance Measurement
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Questions/Discussion

• Who has the first Question/Comment?

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Thank You!
Brent Peters Ciber (CBR) - DigiTerra Cincinnati
Regional Office [phone] bpeters_at_digiterra.c
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