Intro WMS & me Activity

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Warehouse Management System

Oran Kittithreerapronchai1

1Department of Industrial Engineering, Chulalongkorn UniversityBangkok 10330 THAILAND

last updated: May 30, 2013

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Intro WMS & me Activity

Outline

...1 Introduction to WMS

...2 WMS in Warehousing Management

...3 Warehouse Activity via WMS

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What is WMS?

Information System: IT/IS for operational in warehouseIntegration: collect, analyze, & report all activitiesImportant: strategic decision to modernize WHIndustry: high transaction, require trackingStandard Function: search & track SKU, batch processing, individual reportAdvance Function: cycle count, profiling, RF, data transfer

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History of WMS

1975 First WMS installed at J.C. Penney.1990’s Hundreds of new stock locators & WMS systems; enable RF; Windows

NT platform emerges.1995 become $100 million business2000 Expanded suites with TMS .

Today User-configurability & scalability remain key differentiatorsource: Brett Peters. “Collect-Industry Council on Material Handling Education”

Thailand1997 introduce by modern trade

2000s adopted by large retailersToday more adoptees, niche market

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Evil cycle in a warehouse

Business growth: fear of lost sale → more SKUs & qtyWarehouse managing: inaccuracy, miss delivery → no space, long cycletimeWarehouse expansion: deadstock, seasonality → expansion, moreequipments & workersCosts increasing: more capital → economy of scale

How to break this cycle? → better management with WMSEfficiency: 1st step of automation & modern Warehousing Mgt.Transparency: enabler to change → less flexible to do thing

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Minimum Requirement of WMS

Access & Tracking Control: multi-users, roles & authorizationRadio Frequency: realtime access, hand held device (Villa Grocery)Flexility : unit-change, adjust picking policy, manual overwrite, export dataManagement: cycle count, picker KPIs, report, integration

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World of WMS

WMS market is niche IT market ↔ equipment, trading, data sharingIn US, ∃ many new & extinct vendorsThailand limited in big company, high volume

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ERP/WMS/TMS

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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Receiving with WMS

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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Put-Away with WMS

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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Picking with WMS

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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Components in WMS

Product Files: (Item Master): SKU ID, descriptions, dimensions, date, lot,units, bills of material, substitutionsLocation Files: (Location Master): address ID, layout, quantity, sequencing,dimensions, capacityHistory Files: (Order Master): date, customer/supplier, document ID,quality, unitEquipment Files: equipment ID, location, status, capacityEmployee Files: worker ID, labor standards, operator-equipment matrices,incentive,Customer Files: customer ID, contact, term of payment, evaluation

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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WMS Cost breakdown

Components % Total CostsHardware

Computer 6RF Data Comm 24Bar Code Applicator 8

SoftwareWMS Licence 8WMS Enhancements 10Host Interface 6Other Software Licence 4

ImplementationLocation Labels 6WMS Installation Service 21Project Team Cost 6

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Signs for WMS consideration

Complaints: ship accuracy, ↑ # checker,Data management: cycle count, multi-crowded, picker KPIsProductivity: 1000 line/ man-hrCycle time: hot released for truckBusiness: short cycle or long cycle count, high turnover

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WMS Justification

Task Related CostDirect labor: better measure/control individual performanceIndirect labor: reducing training & supervisingAdministration: automate collecting & analyzing data

Possible savingTangible savings: space utilization, paperwork, expedited deliveryIntangible savings: customer service,inventory turnover, performancemeasurement

source: Brett Peters. “Collect-Industry Council on Material Handling Education”

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Choosing WMS providers

Complete package: limited target group, special functions in modulesState-of-Art technology: text-interface VS GUI, web-browser, shorter lifecycleImplementation capabilities: adjustable parameters, experiencedconsultantsConsiderable customer base: recommendation, match with equipments oroperations, ’best practice’,Professional organization: trustworthy, after-sale service, stay in business

source: Jeroen van den Berg Consulting. 2002

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WMS Trends

Connectivity: RFID, other information system (e.g., supplier ERP)Costing analysis: activity based costing & management of individual pickerEmbedded profiling: facilitate re-layout & inventory slottingLeveraging data: utilizing more data/informationSharing data: accessing data by other parties, including consumerSoftware as a Service (SaaS): rented on-demand at low monthly cost peruser

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Questions

1. TBA

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Reference

[BH09] J. J. Bartholdi and S. T. Hackman.Warehouse & distribution science.Suply chain and logistics institute, Georgia institute of technology, 2009.

[Fra02] E. Frazelle.World-class warehousing and material handling.McGraw-Hill Professional, 2002.

[Mul94] D.E Mulcahy.Warehouse distribution and operations handbook.McGraw-Hill New York, 1994.

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