Barb Bankson Inventory Control Quality Manager

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WMS IMPLEMENTATION AND OPERATION

• Barb Bankson - Inventory Control / Quality
  Manager

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Genesco is a premier life-style focused marketer
of branded footwear and accessories.

• Journeys
• Journeys Kidz
• Jarman/Underground Station

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BUSINESS NEEDS - Current

• Growth of Journeys, increasing SKU count,
  planned store growth
• Multiple warehouses
• Product mix change More accessory items
• All warehouse processes were paper/manual
• Inventory discrepancies

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BUSINESS NEEDS - Future

• Capacity for five years growth
• Consolidate warehouses
• Real time inventory transactions
• - Improve Inventory/Shipment accuracy
• Tools for planning and scheduling
• Improve deliveries to retail stores and store
  receiving process/accuracy
• Reduce unit costs

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WAREHOUSE /WMS

• Groundbreaking August, 2001
• 323,000 sq ft Floor space
• 25,000 sq ft on mezzanine
• Automated MHE
• 2.5 miles of conveyor
• (Fortna - Material Handling System)
• Warehouse Management System
• PkMS - Manhattan Associates

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WAREHOUSE DESIGN/BASICS

• 11,300 Forward (Active) pick faces
• 13,500 Bulk (Reserve) locations

• ACTIVE and RESERVE locations
• - ALL Single SKU (Style/Color/Size/Width
  )
• All transactions require barcode RF scan
• - live update of inventory
• Cubi-scan ALL SKUS at receipt

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Warehouse Processes
INBOUND

• Receive large quantities quickly
• ASN Receiving
• Slot SKUs to Active Location
• System Directed Put-away, based on volume.
• - Fill active location first
• - Remainder to reserve (Bulk storage)

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Warehouse Processes
WAVING / REPLENISHMENT

• Shipping schedule is Monday - Thursday
• Routes orders together Grouped by Ship Via
• Carton Shipping labels printed at time Wave is
  released to the picking floor
• Conveyor directs cartons to the zone for picking

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Warehouse Processes
PICKING

• Associate scans carton label, directed to
  location,
• picks quantity directed, scans SKU
  barcode,scans carton to confirm the pack
• PkMS adjusts active location, moves inventory
• to carton
• PkMS follows carton and tracks status
• through the DC
• Packed cartons continue to Taping /manifesting
• mezzanine

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Warehouse Processes
TAPING/MANIFESTING

• 6 manifest stations
• 2 Quality stations
• In-line scale
• Manifest on
• the Fly

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Warehouse Processes
SHIPPING SORTER
Diverts cartons to Outbound lanes assigned to
Shipment/Load

• 14 shipping Dock Doors
• 10 flow load lanes
• Cartons are sorted by Ship via, diverted to
  lane

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Warehouse Processes

• 7 LTL lanes
• Cartons are sorted by ship to for LTL
  shipments

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Systems Integration
Item Master, Retail Orders, Purchase Orders,
ASNs
Host Mainframe
PkMS (AS/400)
Inventory Transaction Ship confirms (Invoice)
Divert Confirms
Purchase Orders
Fortna Plus Servers
ASN
Carton and Picking Divert Instructions
Vendors
D End of Life
Tapping Mezz
Shipping Sorter
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HOW DID THIS AFFECT THEDISTRIBUTION ASSOCIATES
AND GENESCO ? ?
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CULTURE SHOCK
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? ? LDC and WMS ? ?

• Procedures and processes
• Inventory Accuracy
• Real time inventory updates
• Difference between Active and Reserve
• - (Location / SKU)
• Locations based on volume
• Warehouse configuration
• Personnel
• - Training
• - Technical skills

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OPERATIONAL CHALLENGES

• MULTIPLE / DIVISIONS
• Start-up LDC while operating three other DCs
• Kidz Chapel Hill
• Journeys Murfreesboro Road
• Jarman/Underground Station
  Fayetteville
• Keep inventory separated physically and
  systematically - Same SKU -- Different
  divisions

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OPERATIONAL CHALLENGES

• SEASONAL
• Spring/Summer (March April)
• Back to School (Mid June September 1)
• Holiday (October 15 - December 20)

• PRODUCT MIX
• Spring Sandals small not in shoe boxes
• Light weight shoes
• Accessories T shirts/shorts/sunglasses/watch
  es
• Fall/Winter - BIG heavy boots irregular size
  boxes
• Accessories Bulky hats/ fluffy house
  slippers,
• Sweat suits / jackets / caps

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OPERATIONAL CHALLENGES

• Internet / Catalogue
• Journeys
• - November 1st added Jarman and Kidz

RESULT More SKUS - break down inner-paks
Extended life-span of SKUS to cover
catalogue dates
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WHERE ARE WE TODAY ?
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LOCATION CONFIGURATION
November 2004 SERVICE 932 Retail
Stores Approximately 1,204
shipments per week
60,000 Pr Shoes/Day Shipped
10,000 12,000 cartons per day

• Forward (Active) pick faces
• Start-up 11,300
• Today 16,500
• Bulk (Reserve) locations
• Startup 13,500
• Today 7,250

SKU Count 14,600 89 capacity
Locations Used 6,175 85 capacity

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CHALLENGES ?
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TODAYS CHALLENGE
SLOTTING
)

• Correct size location for the quantity being
  received based on SKU Profile

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Warehouse Pick Configuration
Bin Picking Module (Two levels)

• Small quantities 24 36 Pr depending on
  volume
• Slow velocity
• Second Level is used for small end of Life
  SKUS Catalogue SKUS
• Approx. 7,600 locations

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Warehouse Pick Configuration

• Two
• 3- level
• pick
• modules

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Warehouse Pick Configuration

• Carton Flow on Floor Levels of B and C modules

• 60 90 pr (10-12 cs)
• After initial shipment to stores or PO qty
• Lower ship qty than Pallet flow
• Approx 1105 Locations

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Warehouse Pick Configuration
Pallet Flow Picking Module

• Each location holds four pallets each SKU
  350 - 600 pr.
• High volume - high velocity
• New Styles - initial shipment
• Approx 775 locations

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FLOOR PALLET LOCATIONS

• Single Pallet Locations
• Approx. 75 100 pr.
• Lower Pick Quantities
• Approx 700 locations

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SLOTTING CHALLENGE
TOTAL RECEIPT 11,292 units 4 DAYS
Shipped Total 8,812 units 78
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• Final Thoughts
• The Digital world and the Physical world must
  stay in sync
• Set processes and procedures must be in place
• Communication No changes without group
  consensus and agreement
• WMS requires discipline, training, and
  consequences
• Flexibility configurable within parameters
• Be ready for CHANGE it WILL happen
• Be ready for RESISTANCE to Change

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• Final Thoughts

Plan for the unexpected Murphy is ALIVE And
WILL VISIT YOU!
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Questions
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Thank You

• Barb Bankson - Inventory Control / Quality
  Manager
• bbankson_at_genesco.com