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

2. Introductions Larry Dillender DC Operations Manager Jim Harnage Functional Systems Manager

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

4. 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.”

5. 447 Stores in 30 States 65 6 6 8 8 7 7 6 6 1 1 4 4 4 4 25 8 8 32 19 3 3 1 1 17 15 22 7 7 60 17 7 7 10 31 44 1 1 9 9 5 5 4 4 8 8 1 1 Distribution Center Store Count

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

7. 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

8. DC Daily Overview 40-60 Inbound Trailers 50-100 Outbound Loads 315 Stores Serviced 1000 Letdowns 40,000 – 60,000 Pick Lines 1000 Putaways

9. RF Backbone Hardware Overview 802.11b 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

10. SAP Retail Version 4.6c Hotpack 21 Software Overview SAPConsole Version 4.6d Georgia Softworks Telnet ver. 6.27.0003 Vocollect Quick Pick Veritas Cluster Services ver. 2.0.1

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

12. Project RF Implementation Partners Our RF Transactions Some RF extras

13. RF Transaction Development Implementation Partners (215) 579 6191 SAPConsole@catalyst-pa.com

14. RF Hardware and Installation Implementation Partners (215) 579 6191 SAPConsole@catalyst-pa.com

15. 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

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

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

18. 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

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

20. Voice-Activated Solution Implementation Partner (412) 829-8145 www.vocollect.c om

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

22. Gravity Flow Area

23. Voice-Activated Architecture

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

25. Vocollect Pick Manager

26. Vocollect – A Sample

27. 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:

28. 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:

29. 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

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

31. 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

32. 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.

33. QUESTIONS?

34. Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: Retail - 3305 WM - 4906