1. 1 NCOAUG - Chicago February 13, 2002 Warehouse Management: Oracle’s Answer

2. 2 Topics Speaker Background Why Bother With WMS?  Quantifiable Improvements – ROI  Qualifiable Improvements Case Study – Oracle’s Solution at Tenderheart Questions/Discussion

3. 3 Speaker Background – Why am I here? Accomplishments  Development for 2 separate WMS  Experience – 10+ years in SCE  Interface Development w Including MHE  Project Management  Assessments  Software Selection Studies (Right Fit)  Supply Chain Strategy

4. 4 What is a WMS? Can’t be that hard, right? INVENTORYINVENTORY Receiving Shipping

5. 5 Total Logistics Cost % of Total Logistics % of Sales Transportation43%3.44% Warehouse25%2.09% Inventory Carrying Cost 29%2.32% Administration 3% 0.24% TOTAL100%8.09% Source: Collection of Multiple Studies and DigiTerra’s Experience - “Best Practice Data” See next slide for a further breakdown

6. 6 Total Warehouse Cost % of Total Warehouse Cost % of Sales Labor45.7%.96% Space21.5%.45% Energy4.4%.09% Equipment6.9%.14% Materials8.3%.17% Other13.2%.28% TOTAL100%2.09% Source: Transportation and Distribution - “Best Practice Data”

7. 7 WMS Benefits - Quantifiable Reduction of Inventory Carrying Costs  8 to 15% w Increased Inventory Turns w Eliminate Some Safety Stock $100M Company Ø 3% reduction in inventory achieves savings of $500K Improved Space Utilization  10 to 40% w System Directed Putaways w Enhanced Consolidation w Cross-Docking Opportunities Source: Gartner Group / APICS

8. 8 WMS Benefits - Quantifiable Reduction of Scrap Ø 13 to 30% w WMS Picking Logic through system monitored shelf life w Reduction in Inventory Loss w Reduction in Mis-Ships Better Utilization of Equipment  10 to 30% w WMS reduces idle time by balancing the workload more evenly 50-60% of warehouse workers’ time spent traveling  WMS can reduce that to Source: Gartner Group / Global Logistics and Supply Chain Strategies 10 to 20%

9. 9 WMS Benefits - Quantifiable Picking Productivity Increases Ø 16 to 25% w Optimized Picking route w Use of Labor Standards Reduction in Customer Returns Ø 11 to 25% w Less Picking Errors Productivity Improvements Ø 10 to 25% w Optimize total workload w Optimize work force task assignment Source: Gartner Group

10. 10 WMS Benefits - Quantifiable Rework Reductions Ø 5 to 20% w System Management of Product Recovery Labor Savings Ø 5 to 15% w Elimination of Redundant Data Entry Transportation Cost Savings Ø 3 to 8% w Order Consolidation Source: Gartner Group

11. 11 WMS Benefits - Quantifiable Reduce Inventory Carrying Costs by Reducing Inventory Float Dollars Ø 3 to 6% w Faster Receiving/Update reduces float dollars (inventory received, not yet recognized) Paperwork Reduction Ø 10 to 20 cents per document w Real-Time data Collection decreases paperwork transfers and many standard documents Source: Gartner Group

12. 12 WMS Benefits - Quantifiable Summary Area% Savings (Low Estimate) % Savings (High Estimate) Reduction of Inventory Carrying Costs8%15% Improved Space Utilization10%40% Reduction of Scrap13%30% Better Utilization of Equipment10%30% Picking Productivity Increases16%25% Reduction in Customer Returns11%25% Productivity Improvements10%25% Rework Reductions5%20% Labor Savings5%15% Transportation Costs3%8% Reduce Inventory Carrying Costs by Reducing Inventory Float Dollars 3%6% Paperwork Reductions10 cents per document 20 cents per document Source: Gartner Group

13. 13 Support for web-based order taking Support for web-based order status Improved visibility through entire organization Ø More data, easily accessible and real time Increased competitive situation Facilitates collaboration between suppliers/you/customers Warehouse is last opportunity to manage customers expectations Take care of your product Dynamic customer requirements WMS Benefits - Qualifiable

14. 14 Tenderheart’s goals accomplished through Oracle WM Pick, Pack & Ship Receiving Carrier Scheduling Expected Receipts Unexpected Receipts ASN PO Matching Cross-docking QA Inspection Exception Management Putaway Location Assignment: System Directed RF Directed Put Confirmation Forward Pick Replenish Exception Management Pick by Order, Batch, or Wave Pick/Pack or Pick & Pack Pick Confirmation Paper or Paperless Exception Management Pick & Pack Shipping Shipping Confirmation Carrier Scheduling Dock Management Staging & Loading Exception Management Reverse Logistics Returns Processing Returns Authorization Check-in process Disposition Return to inventory Customer Self-Service Order Planning Product Allocation (FIFO, LIFO, FEFO, etc.) Order / Customer Priority Replenishment to Pick Face Wave Planning: Carrier, Customer, Zone Integration to TMS: Trailer Capacity, Rating, Routing

15. 15 Kitting / Work Orders: Assemble & Dissemble Personalization BOM Multi-Level BOM Build to Order Build to Stock Vendor Compliance Value Add Processing Business Intelligence Transaction History Management Driven – less dependent on operator Analytics Productivity Carrier Performance Real-Time Decision Support Mobile Computing: RF / PDA Technology Integration Cycle Count Planned Counts Threshold Counts Audit Counts: Previous days receipts, transfers, exceptions Real-Time Inventory Management Lot Tracking Shelf Life Monitoring Serial Number Tracking Location & Space Management Item Re- Profiling & Slotting Tenderheart’s goals accomplished through Oracle WM

16. 16 Summary of Improvement Goals Improved Customer Service Ø Reduced Customer Errors w Order Accuracy w Complaints w Damaged Sales w Promises Kept Ø Reduced Customer Lead Times w Order Lead Time (Order Placement - Delivery Date) Ø Real Time Visibility Improved Customer Service Ø Reduced Customer Errors w Order Accuracy w Complaints w Damaged Sales w Promises Kept Ø Reduced Customer Lead Times w Order Lead Time (Order Placement - Delivery Date) Ø Real Time Visibility Improved Customer Service

17. 17 Summary of Improvement Goals Reduced Operating Cost Ø Reduced Labor Cost w Worker Productivity Ø Improved Space and Equipment Utilization w Cube Utilization (Facility and Locations) w Travel Distance Ø Increased Capacity w % Fill Rate w Inventory Accuracy by Location Ø Reduce Capital Investments w Increased Inventory Turns w Carrying Cost (Cost of Money) Reduced Operating Cost Ø Reduced Labor Cost w Worker Productivity Ø Improved Space and Equipment Utilization w Cube Utilization (Facility and Locations) w Travel Distance Ø Increased Capacity w % Fill Rate w Inventory Accuracy by Location Ø Reduce Capital Investments w Increased Inventory Turns w Carrying Cost (Cost of Money) Reduced Operating Cost

18. 18 Summary of Improvement Goals Enhanced Performance Measurements Ø Performance Information Systems Ø Management Reporting Tools w Productivity Tracking w Distribution Statistics Ø Operational Control System w Real-time Visibility to Performance Concerns w Warehouse Management Control Board Enhanced Performance Measurements Ø Performance Information Systems Ø Management Reporting Tools w Productivity Tracking w Distribution Statistics Ø Operational Control System w Real-time Visibility to Performance Concerns w Warehouse Management Control Board Enhanced Performance Measurement

19. 19 Questions/Discussion Who has the first Question/Comment?

20. 20 Thank You! Brent Peters 更多案例： www.aflux.com.cn