SMART WAREHOUSE SOFTWARE: A SOLUTION TO EVERY SITUATION
NICOLE JAMES
SUZANNE MCGOUGH
June 25, 2020
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
PRESENTERS
Nicole James
Senior Director, Software & Voice Product Management
Nicole has held various roles in software development for the
past 25 years, working in several industries. In her current role,
she has global responsibilities of leading distribution and
fulfillment solutions for the entire Honeywell Intelligrated
Software portfolio. Using a blend of product management vigor
and software development expertise, Nicole leverages her
experience to drive solutions in developing software offerings
for today and the future through a focus on collaboration,
quality and execution.
1Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
PRESENTERS
Suzanne McGough
Software Product Manager
Suzanne, a product manager at Honeywell Intelligrated, has
been in the distribution and fulfillment industry for eight years.
She has hands-on experience in labor, retail, e-commerce and
omnichannel fulfillment, and previously worked for a major
apparel retailer. She has performed various roles focusing on
industrial engineering, continuous improvement and software
product management, leading complex system integrations
in order to deliver value to customers.
2Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
TRENDS AND DRIVERS
3
Speed and Growth Labor Connectivity Urbanization
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
SPEED AND GROWTH
4
Source: U.S. Census Bureau; census.gov/retail/mrts/www/data/pdf/ec_current.pdf Source: DigitalCommerce360.com
$524 billion
2018
$602 billion
2019
Examples:
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
POLL QUESTION
5
1. How many of you have adopted some type of continuous or waveless model
for releasing work within your DC?
A. Still create waves manually utilizing a wave planner
B. Create waves but have automated the wave release
process to throttle based on the downstream workload
C. Operation is completely waveless (as small as a single
order release)
D. Waveless will not help my operation
Smart Warehouse Software: A Solution to Every Situation
TO WAVE OR NOT TO WAVE?
6
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
Traditional Waving Characteristics
Focuses on store replenishment
Relatively fixed demand
Waves processed in sequence
Drop in tail-end productivity
E-commerce challenging model
SPEED AND GROWTH
A B C1 2 3
$
Q
7Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
WHICH ONE IS BETTER?
8
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 191 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
P1
P2
P3
P1
P2
P3
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
SMART RELEASE: A RESPONSIVE FULFILLMENT MODEL WITH WES
• Prioritizes and releases orders
▪ Real-time inputs: ship times, labor and automation availability
• Machine learning
▪ Processing times, throughput, actual demand
9
“We’ve experienced an increase of 2 percent improvement in
throughput, which has provided $832k in additional revenue.”
— WES user
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 10
2. What is your number one priority in your distribution and fulfillment operation?
A. Increasing order fulfillment speed
B. Increasing order fulfillment accuracy
C. Reducing labor costs
D. Addressing labor shortages
POLL QUESTION
Smart Warehouse Software: A Solution to Every Situation
ALL WEALTH IS THE PRODUCT OF LABOR
11
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 12
Cost per New Hire
$4,425 plus OT and
temporary staffing costs
LABOR
Inability to Attract and Retain
Qualified Hourly Workforce
55% of Respondents Cite as
a Major Industry Issue
Aging Workforce
Decreased Productivity
Decreased Stability
Turnover Rate in DCs20–40%
Competition for Labor:
In March 2020
Amazon announced plan to hire 175,000 new workers
Instacart announced plan to hire 300,000 new workers
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
20% overstaffing during peak times
13
Research shows that labor accounts for
60–70% of all distribution center costs.
LABOR
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 14
LABOR
MAXIMIZE YOUR LABOR SPEND
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 15
3. Within the DC there are thousands of data points that can be leveraged to
provide insights, which of the following services would you want the most in
regard to data?
A. Proactive and predictive insights into the order
fulfillment lifecycle so that I can take action
B. Labor staffing recommendations via consulting services
C. Real-time alerts and at a glance key performance
indicators (KPIs)
D. None, I already have all the data insights I need
POLL QUESTION
Smart Warehouse Software: A Solution to Every Situation
DATATHE 1ST CLASS PASSENGER
16
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 17
• Enables real-time data and
visibility to provide insight to
support strategic and tactical
decisions
• Facilitates integration between
systems to enable a more
seamless supply chain
• Enables performance
measurement
and monitoring
• Improves forecasting accuracy
• Increases efficiency
Roughly 55% of your warehouse labor burden
comes from picking. Collaborative robots will work alongside
a human workforce, rather than replacing them, to improve picking efficiency.
IoT
CONNECTIVITY
Smart Warehouse Software: A Solution to Every Situation
WES Automation
Capabilities
• Pick
• Put
• Route the product
Benefits
Increased
• Accuracy
• Reliability
• Insights
Decreased
• Costs
• Labor
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 18
• Traditional standards for managing the
warehouse are obsolete
• Big data analytics in warehouse management
• Expand operations, improve risk management,
achieve shorter cycle times
• Meet increasing customer demands
through supply chain data.
Predictive and Prescriptive Analytics
CONNECTIVITY
Smart Warehouse Software: A Solution to Every Situation
Approximately 79 percent of companies that maintain high-performing
supply chains can reap above-average revenue growth by using analytics.
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 19
CONNECTIVITY
Advanced machine-learning algorithms and data-driven optimization techniques
are orchestrating automation and empowering warehouse execution.
Machine Learning and Artificial Intelligence
• Increase in fulfillment complexities
• The number of automation systems,
workstations, processes, orders and
SKUs
• Possible permutations expand
exponentially
• From a human capabilities perspective,
become nearly impossible to manage
and decipher
Smart Warehouse Software: A Solution to Every Situation
AUTOMATION, ROBOTS AND CITY LIVING
20
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 21
URBANIZATION
Urban
68%
Other
32%
Location of Population in 2050
Smart Warehouse Software: A Solution to Every Situation
• In 2018, 55% of the population lived in urban areas.
▪ As overall population increases, we will see that number
continue to grow.
• How does it affect warehouse automation?
▪ Growth of e-commerce, tighter SLAs
▪ Labor scarcity
▪ Robots
▪ More products closer to more people and in less space
▪ Dark warehouses
▪ BOPIS
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 22
Industries Using Robotic Automation Due to Urbanization• Grocery
• Big-box retailers
• E-tailers (e.g., Amazon)
Where?• U.K. and the E.U.
• Australia
• China
• U.S.
• India
• And growing…
URBANIZATION
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 23
URBANIZATION
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
SUMMARY
24
Speed
and Growth
Labor
Connectivity
Urbanization
• Personnel shortage
• Aging workforces
• Resource productivity
• Same-/Next-day
shipping
• Demanding peak and
holiday seasons
• Flexibility
• Products close to the consumers
• Dense area coverage
• Smaller footprints
• Greater transparency
• Digital boom
• Data-driven insights
$
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.
Conveyor &
Sortation
Systems
Fulfillment
TechnologiesLifecycle
Services
Operations &
Solutions
Development
Palletizing &
DepalletizingRobotic
Solutions
Software
Solutions
The Connected
Distribution
Center
@Intelligrated
QUESTIONS?
25
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
PREPARED QUESTIONS
26
1. How much of my budget should I be allocating for automation?
2. What automation functions are seeing the most adoption? In other words, are more
people buying labor programs versus robots, etc.?
3. What’s the difference between a typical WMS versus a warehouse execution system?
4. As far as costs, is there a significant difference in buying a full WES versus an
à la carte approach? Or is that even possible?
WES, please reword from
customer perspective.
Honeywell Intelligrated On the Move
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated
POLL QUESTION
27
1. How much of your distribution and fulfillment center is powered by automation?
A. 0%
B. 1–24%
C. 25–49%
D. 50–74%
E. 75–100%
Smart Warehouse Software: A Solution to Every Situation
Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 28
3. What automation is your business most likely to adopt?
A. Autonomous Mobile Robots
B. Automated shuttle/retrieval systems (AS/RS)
C. Goods-to-operator workstation
D. Not familiar with automation
POLL QUESTION
Smart Warehouse Software: A Solution to Every Situation