Radio Frequency and Voice-Activated Picking in a Distribution Center R

Introductions Larry Dillender DC Operations Manager Jim Harnage Functional Systems Manager

Presentation Overview Tractor Supply Company RF Transactions Hardware / Software WM Functionality Pendleton Distribution Center Voice-Activated Picking Intangible / Tangible Gains Lessons Learned

TSC Overview “Stores are located in rural communities and in the outlying areas of large cities where the rural lifestyle is a significant factor in the local economy.”

447 Stores in 30 States Distribution Center Store Count

Big Bang Go-Live January 6, 2003 Project Overview Timeline – Approximately 6 months Paper Based Environment Goals - Increase Productivity, Accuracy, and Real Time Inventory

DC Overview 500,00 Square Feet under roof (12 acres) 33,000 Bin Locations 265 Floor Associates 17 Clerical Positions Pendleton, Indiana – North East of Indy

DC Daily Overview Inbound Trailers Outbound Loads 315 Stores Serviced 1000 Letdowns 40,000 – 60,000 Pick Lines 1000 Putaways

RF Backbone Hardware Overview b Cisco Aironet 350 Access Points RF Devices Handhelds – Symbol PDT 6846 Vehicle Mounts – Symbol VRC 6946 Vocollect Hardware Proprietary Talkman Units w/Cisco RF Card Zebra Z6000 Label Printers - Thermal

SAP Retail Version 4.6c Hotpack 21 Software Overview SAPConsole Version 4.6d Georgia Softworks Telnet ver Vocollect Quick Pick Veritas Cluster Services ver

TSC WM Overview Putaway StrategiesPicking Strategies Fixed Bins Bulk Storage Near Picking Bin Addition to Stock Open Storage Fixed Bins FIFO

Project RF Implementation Partners Our RF Transactions Some RF extras

RF Transaction Development Implementation Partners (215)

RF Hardware and Installation Implementation Partners (215)

8 Physical/Logical Storage Types TSC WM Overview Handling Units (HU) as Shipping Units Fixed Bin Auto Replenishment 1 Storage Type divided into 2 Sections

Our RF Transactions LTL Receiving Bulk Receiving Putaway by TO Manual Letdown System Letdown HU Consolidation

Our RF Transactions HU Inquiry Picking Bin/Article Inquiry Enter Inventory Counts Create Inventory Document Master Data Correction

Some RF Extras Print Handling Unit Labels from Transaction HU Consolidation with Master Label Bulk labels – not TO Labels Loading by Store rather than Delivery LTL TO Labels

Voice Activated Implementation Partner Voice Advantages Voice Architecture Voice and RF - Cost Differences Voice in Action Our Interface to Vocollect

Voice-Activated Solution Implementation Partner (412) om

Voice-Activated Advantages Improved accuracy Increased productivity Reduced training time Voice communication is natural Eliminates paper Hands-Free Operation

Gravity Flow Area

Voice-Activated Architecture

Voice-Activated Additional Expense? Minimum differences: Server for Pick Manager Database Additional cost per Unit Training Devices Software SQL License

Vocollect Pick Manager

Vocollect – A Sample

Vocollect – Our WM Interface Extract data from SAP Record entry in Z table Generate.dat file on Server Upload file every 10 minutes The Download from SAP:

Vocollect – Our WM Interface Oracle Procedure extracts Completed picks from SQLServer (2.5 minutes) Z Program feeds WMTOCO Idoc from table above (5 minutes) The Upload to SAP:

Vocollect – Our WM Interface Group TO’s by TO number for Idoc processing to avoid Delivery Locking Schedule Re-processing Job for Idocs The Caveats: Delivery Locking Fix from SAP Purging Strategies for Z tables

Reduction in Training Time Intangible Gains Real-Time Data Better Controls Employee Morale

Overall DC – 8-10% Improvement in Lines/Hr Tangible Gains Receiving – 6% increase in PO’s/Hr Put away/Letdown – Elimination of 4 clerical. Billing – Went from 7 to 4 clerical Gravity Flow – 18% Improvement in Lines/Hr

Seattle Labs Telnet User Limitations Lessons Learned MASTER DATA, MASTER DATA, MASTER DATA End-User Process Training SAP Picking Function Modules Monitor Table Sizes – HU’s, etc.

QUESTIONS?

Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: Retail WM