Driving Supply Chain Effectiveness by Leaning Your Warehouse Lean Warehousing Driving Supply Chain Effectiveness by Leaning Your Warehouse Chris Barnes – Consultant, Product Support Services, QAD

Lean Warehousing Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Objectives Best practices you can implement today Lean Warehousing Objectives Best practices you can implement today Understand advance strategies with QAD Warehousing Cover 50 lean warehousing practices

Tell Me About You… Do you have a warehouse Lean Warehousing Tell Me About You… Do you have a warehouse Any lean initiatives in the warehouse Do you use WMS What would you like to get from this session

Lean Warehousing Warehousing Defined A building, or a part of one, for the storage of goods or merchandise To some in the JIT world, warehousing is considered a waste

“Top Pressures” Driving Lean Warehousing 45% do more with less 35% increased demand / supply fluctuations 31% better utilization of resources 39% rising operating costs 28% customer turn time requests Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

“Top Actions” to Improve Warehouse Management Lean Warehousing “Top Actions” to Improve Warehouse Management 54% Better systems integration 39% Improve labor efficiency by reassessing software and warehouse resources 39% Increase visibility into inventory and order status 36% Improve throughput through systems or automation 32% Realign / consolidate products across our facilities 21% Improve perfect order rate by improving pick accuracy and on-time shipment Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

Lean Warehousing Principles Flexibility Lead time reduction Risk reduction Reduce variation Business plans as guidelines Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Get organized Marked aisles & areas Look at lighting Straight flows Slotting strategy Minimize travel Flexible picking strategies Source: Aberdeen Group - Warehouse Management Excellence, Maximizing Resources & Efficiency, Nov 2010

QAD Warehousing Flexible Picking Lean Warehousing QAD Warehousing Flexible Picking Discrete Batch Cluster Zone Pick & pass

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Establish appropriate pick locations Use voice pick where appropriate Measure warehouse performance Share performance information Business intelligence Use RF data collection Leverage alerts & messaging

Lean Warehousing RF Task Management and inquiries save time and provide real-time information updates. 12

Alerts and Instant Messaging Lean Warehousing Alerts and Instant Messaging 13

Lean Warehousing RF Messaging 14

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Wave management Ensure inventory positions Focus on inventory accuracy Use cycle counting Get rid of excess inventory Get rid of space wasters Store obsolete materials off-site Improve cube utilization Vary storage location sizes

Vertical Honeycombing Lean Warehousing Cube Utilization Vertical Honeycombing wasted space improved beam spacing

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Know your order profile Store loads according to size Space allocation by planned inventory levels Use reserve storage and forward pick Implement random storage

Reserve Storage / Forward Pick Lean Warehousing Reserve Storage / Forward Pick Reserve = Random Unit 4 Unit 1 Unit 2 Unit 3 Reserve Loc Reserve Loc Forward Pick = Dedicated 040-BX-001 040-EA-001

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Consider fluid loading Use the correct equipment Consider planned & opportunistic cross docking Leverage advanced shipment notice (ASN) Minimize packaging Store receipts without checking or repacking Run a scheduled dock Replace checking with auditing

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Quality sampling and auditing available on receipt Measure to improve labor performance Cross train Identify your superstars Use standard operating procedures Perform layout assessment Minimize aisle widths Optimize staging areas

50 Ways to Lean Your Warehouse Lean Warehousing 50 Ways to Lean Your Warehouse Store in aisles Standardize pallet sizes Standardize unit loads Storage racks over dock doors Case flow racks in pallet racks Interleave work tasks bonus 50 ½. Leverage a solid WMS

QAD WMS is Fully Integrated into QAD Apps Lean Warehousing QAD WMS is Fully Integrated into QAD Apps Receiving Cross Docking VAS Productivity Tracking Inventory Lot, S/N, Exp QAD Apps Yard & Dock Management Put-Away Slotting Replenishment Optimized Picking Shipping / Manifesting Wave Planning Task

Value Chain Certification Lean Warehousing Value Chain Certification Belt Value Chain Certification White Green Field Readiness EAM EAM EAM DM DM DM BI BI WMS WMS SCP SSM Configurator MSW / PSW Transportation EAM DM BI WMS SCP SSM Configurator MSW / PSW Purchasing Financials Transportation Black

Core Principles of Lean Warehousing Visible customer consumption Reduce lead time Pull system Reduce variation Create velocity Focus on process discipline Total cost of fulfillment

Metrics Affected Lean Warehousing Process Benefit Value Bin Level Location Mgt Reduced labor cost Improved fill rate Reduced Inventory level Improved Inventory accuracy Less warehouse space -20 to 30% +10 to 40 pts -10 to 30% To 99.9% -20 to 50% Receiving Labor reduction Real Time Put Away, Product Slotting Inventory accuracy improved Mobile Device Based Order Fulfillment

Next Steps Ask your account manager for a Lean Warehousing Q−Scan

Lean Warehousing Questions & Answers Chris Barnes: c9b@qad.com

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