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Warehouse Management Systems,And the Small to Midsize Company

A CEI Logistics Presentation

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Joe W. Jackson

CEI Logistics Senior Consultant

16 Years Experience in DC Systems Integration

Multiple Small to Medium Company WMS Implementations

INTRODUCTION

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Inventory Control

Cycle Time Reduction

Order Accuracy

Labor Productivity

Real-Time Information About DC Performance

…SOUND FAMILIAR? 

REASONS FORTUNE 500 COMPANIES IMPLEMENT WMS… 

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CONTROL

REGARDLESS OF YOUR COMPANY SIZE WHAT YOU REALLY WANT IS:

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Locator System

Transaction Processor

Inventory Control System 

Warehouse Management System 

ERP System

CONTROL OPTIONS… 

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Operational Assessment/Business Case

 – R.O.I.

 – Competitive Advantage

 – Long Term Profitability

 –

Industry Pressure

 – Customer Compliance 

HOW DO YOU DETERMINE IF A WMS IS RIGHT FOR YOUR OPERATION… 

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RESOURCES REQUIRED TO IMPLEMENT A WMS… 

Project Team

 – Executive

 – Operations

 – Warehouse

 –Corporate IS

 – Inventory Control

 – Customer Service

 – Vendor Application Team

 – Corporate Product “Owner” 

 – Time Committed Project Manager

Systems Requirement Document (SRD)

…HOW DO YOU MANAGE ALL THESE RESOURCES? 

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Implementation Partner

 – Time Dedicated Resource

 – Experienced In WMS Implementation 

 – Supplements  The Company’s Project Team 

 –Project Focused 

 – Impartial Perspective Of All Project Phases 

IMPLEMENTATION PARTNER…A PROVEN CONCEPT 

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FOUR PHASE APPROACH TO SUCCESS

Phase One - Operations Assessment

Phase Two - Vendor Selection

Phase Three - Development/Configuration

Phase Four - Implementation

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PHASE 0NE – OPERATIONS ASSESSMENT

Process Maps- Document current processes - Identify opportunities for improvement 

Activity Profiling- Capture peak transaction volumes by functional area - Interview key stake holders to develop vision of future requirements - Project activity over planning horizon to create design database 

Future Business Requirement- Develop “to- be” process maps to define future operations - Identify IT functionality required to support future processes 

IT Gap Analysis- Compare desired “to be” functionality to existing system functionality  - Document gaps in current system 

New System Justification- Define recommended solution based on gaps identified - Develop business case for new system / system enhancements as appropriate 

…MOVE TO PHASE TWO? 

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PHASE TWO – VENDOR SELECTION

Develop Functional Specification

- The information gathered in the Assessment Phase is developed into an application specification 

Vendor Pre-Qualification- Vendors are pre-qualified based on their experience, capabilities,

and project capacity 

Bid Process- The formal Functional Specification is extended to the qualified 

vendor list for costing 

Evaluation Matrix

- All vendor offerings are evaluated on the established criteria, and a recommended supplier selected 

Vendor Selected- A contract is offered to the prevailing supplier. This is the 

beginning of the Phase - 3 activity (Software Development) 

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PHASE THREE – DEVELOPMENT / CONFIGURATION

Systems Requirement Document

- The Systems Requirement Document (SRD) defines the complete software solution deliverable including client and supplier obligations 

The Functional Specification is the reference document for this activity 

Master Schedule

- The final element of the SRD is the project Master Schedule. This 

includes all mission critical milestones, and dates for required deliverables 

Application Configuration / Development- The advocate manages software vendor with regard to final 

functionality and required modifications 

Site Preparedness Audit- Formal activity to insure both vendor and client are prepared 

for installation and testing 

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PHASE FOUR – IMPLEMENTATION

Site Coordination

- Actual on-site installation and testing of solution 

Installation

Project Management

Application Training

- On-Site training of the user group  

System Acceptance Testing

- Solution is tested thoroughly for both functionality and reliability,based on an established test plan 

On - Going System Evaluation- Through annual check-ups and discovered opportunities for 

improvement, the assures a solution that maintains it’s usefulness 

through several years of business cycles 

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REMEMBER… 

Do Not Automate “Bad” Processes 

Focus On The Project , Not The Product

With A WMS, Weigh Conformance Against Customization

It’s the complexity, not the size of the operation that matters 

WMS Can Be Deployed In Almost Any Firm, Regardless Of Size

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FOUR PHASE ROAD MAP… 

IT Gap Analysis 

Vendor

Pre - Qualification 

Systems Requirement 

Document 

Activity

Profiling Process Maps 

Master

Schedule 

Site Coordination, Installation And 

Project Management System 

Acceptance Testing 

Site

Preparedness Audit 

Application Training 

Functional

Specification Document 

On - Going

System Evaluation 

Phase 1 - LIS Assessment 

Phase 3 - Software Development 

Phase 4 - Implementation Services 

Phase 2 - Vendor Selection 

CEI Logistics’ Client Advocacy 

New System Justification 

Bid Process Management  Contract 

Awarded Evaluation

Matrix 

Software Development 

Support 

Future Business Requirement  IT Gap 

Analysis 

Vendor

Pre - Qualification 

Systems Requirement 

Document 

Activity

Profiling Process Maps 

Master

Schedule 

Site Coordination, Installation And 

Project Management System 

Acceptance Testing 

Site

Preparedness Audit 

Application Training 

Functional

Specification Document 

On - Going

System Evaluation 

Phase 1 - LIS Assessment 

Phase 3 - Software Development 

Phase 4 - Implementation Services 

Phase 2 - Vendor Selection 

Implementation Partner Client Advocacy 

New System Justification 

Bid Process Management  Contract 

Awarded Evaluation

Matrix 

Software Development 

Support 

Future Business Requirement 

Implementation Partner & User Vendor

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Questions ?