Warehouse Management

Presenter’s Name
Presenter’s Title
Safe Harbor Statement

The following is intended to outline our 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, or functionality, and should not be
relied upon in making purchasing decision. The
development, release, and timing of any features
or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Warehouse Management At-a-Glance
Internal
Inbound Outbound
Processing

• Purchases • Pick • Assembly • Customer Shipments

• Mfg / Assembly • Pack • Storage • Vendor Returns
• Transfers • Inspection • Move • Transfers
• Outside Processing • Count • Replenish • Outside Processing

“Senior level executives now realize that the

automated warehouse is as much a part of
e-commerce and e-fulfillment as the Internet.”
- Supply Chain Yearbook
 Warehousing Functionality Spectrum

High
Highly Automated Facilities
Automate physical inventory handling
Product / Order Complexity

Warehouse Management
Implement a true “execution system” using
system directed tasks and task management

RF / Barcode Only
Improve accuracy and reduce latency
of existing transactions

Manual Inventory
Record transactions and
track balances
Low

Small Transaction Velocity / Volume Large

 Business Pressures

Just-in-Time Delivery Guaranteed Availability

• How can I improve the speed • How can I improve order
of warehouse operations? promise accuracy?
• How do I integrate • How do I create a global
operations to reduce order view of inventory?
processing time?
Internal
Inbound Outbound
Processing

One Size Fits One Lowest Total Cost

• How can I manage • Where can I reduce
SKU proliferation? inventory while maintaining
• How do I ensure high fill rates?
labeling compliance? • How do I improve labor
efficiency?
Operational Challenges
Procurement Manufacturing Order Management

Warehouse Warehouse Warehouse

System 1 System 2 System N

RF Middleware RF Middleware RF Middleware

Integration and Operation Complexity, Localized Solutions

A Need for Change
Leading Business Trends

• Fulfillment Processes Integrated with Partners

• Support All Company Processes (e.g. Service, Mfg)

• Automated Material Handling for Improved Productivity

• Mobile and Automatic Data Capture (e.g. RF, RFID)

• Streamlined Material Flow (e.g. Cross-Docking)

What Customers are Saying…

“With Oracle, we know exactly what product we have,

and where, at any point in time. The accuracy level is
so high that our auditors no longer require us to take a physical
inventory.” -- Mike Yeager, Director of Logistics

“The biggest savings for us is the electronic control.

We're in a life or death business and Oracle Warehouse
Management gives us a real-time view of inventory and
movement.”
-- Andrew Scott, Logistics Manager

“Our Oracle mobile supply chain

management solution dramatically
improved our warehouse operations, speeding times to physically
locate and ship products while virtually eliminating shipping errors.”
-- Rene Schlegel, Controller
What Customers Are Achieving…

increased inventory accuracy to over 99%

reduced total inventory by 75%

recovered $500k of “lost” inventory

increased warehouse productivity by 30%

increased inventory location accuracy from 50% to 98%

shipped 30% more products with the same number of staff

ensured system availability for 24x7 warehouse ops

 A Few More Customers…

High Technology

Communications

Consumer Goods /
Distribution

Engineering &
Construction

Life Sciences /
Medical Devices

Industrial Mfg /
Metals
 How

Delivers
 Foundation:
Unified Information Architecture
Develop
Contracts Market • Common data model
enables a single source
Projects Sell of truth
• Comprehensive suite of
HR Customers, Order applications designed to
Suppliers, work together
Finance Plan
Products, … • Robust set of integration
services based on open
Maintain Procure standards

Service • Modular deployment

Make by business flow
Fulfill
• Single global instance
Warehouse implementations
Management
 Support for the Integrated Enterprise
Built-In, Not Bolt-On Functionality

• Eliminate
Procurement Manufacturing Fulfillment Integration
• Reduce Cost
and Complexity
MSCA & • Reduce Risk and
Warehouse
Management
Upgrade Issues
• Eliminate
Problems with
Service Finance Planning
Reconciliation
• Simplify Support
 Oracle Mobile Supply Chain Apps (MSCA)
Support Basic Warehousing Needs…

Built-in Mobile User Interface

Mobile Manufacturing Mobile Quality

Moves, Issues, Returns, Quality Collections,
Scrap, Completions, … Specifications, …

Mobile Receiving Mobile Inventory Mobile Shipping

Direct, Std, Inspect, Misc. Transactions, Pick, Confirm, Ship,
Cross-Dock, Print, … Transfers, Counts, … Confirm, Print, …

Built-in RF Middleware Mobile

Transaction Server
RF Base
Station LAN or WAN Apps /
Database

RF Device Telnet Over TCP/IP SQL Net

Oracle Warehouse Management Solution
…or Provide a Complete Warehouse Execution System

Label
Assemble
RMAs Cross Dock Replen-
Receive Putaway
Purchases Inspect ish
Transfers RF Support Tailorable
Cost Rules &
Workflow Move
RTVs Global Visibility Process
Orders Directed WIP
Transfers Ship Pack Pick Issues
Count
Transfer

Seamless
Integration

Planning Purchasing Manufacturing Fulfillment

Oracle Warehouse Management Solution

Enables you to…

 Support Lower Cost of Ownership

 Increase Warehouse Efficiency

 Integrate WMS Throughout the Enterprise

 Rules-Driven Processes
Flexibly Meet Needs without Customization

User Defined Suggestions

Transaction
(e.g. Pick) Strategies & Rules (e.g. LPNs
(e.g. > 30 Days Shelf Life) or Locators)

Support for: Directed Picking, Directed Put-away,

Tasks Assignment, Costing, Labeling

• Eliminates customizations • Improves ROI and

ongoing support
• Supports common tool
with examples • Accelerates implementation
• Easily changed and evolved • Increases long-term flexibility
Additional Ways to Avoid Customization

Characteristics Benefits

• Same application for • Maximum flexibility of

RF Device all certified devices RF device selection
Independence • Automatically adapts • Lower support costs
to any form factor

• User definable fields • Flexible interfaces

Lot & Serial
Attributes • Use throughout WMS • Support your specific
(UI, Rules Engine, etc.) data needs
Cost-Effective Global Deployment
Think Locally, Act Globally

• Deploy and manage on

a single global instance

• Support with single

worldwide organization

• Support for statutory and

customary local requirements

• Multi-lingual, multi-currency, multi-org, multi-national

capabilities
- 30 languages, all installable in same unicode instance
 Deployment Options
Run on a Single Global Instance E-Business On Demand

You Oracle
Roles: Needs: Manage: Manages:

Availability
App Admin 50% Lower Cost
Security
DB/AS Admin 50% Better Svc
Performance
Sys Admin Core Competence
Consolidate Data Centers Change
HW Admin Predictable Cost
and Databases Problems

Low Cost Linux Hardware Standardized Open Integration Platform

• 3x Faster, 5x Cheaper
• Easy to Automate en Mass • Business Events Infrastructure
• Highly Reliable
• Industry Standard Protocols
• Centralized Integration Repository
Oracle’s Experience with Linux Customers,

Suppliers,
Production Midtiers 100% Linux Products, …

Production DB RAC Cluster (Unix) Simplify B2B Integration,

Demo Environments 100% Linux Application Connectivity,
Development 100% Linux and Process Management
Outsourced Customers 90% Linux
Modular Architecture
Roll Out Capabilities as Needed

• Implement based on your business priorities

• Choose flows based on time, location or
business process
• Start with one flow, demonstrate initial
success
• Add more flows to expand business
coverage – one step at a time
• Continuously adapt and evolve by changing
you business rules
Oracle Warehouse Management Solution

Enables you to…

 Support Lower Cost of Ownership

 Increase Warehouse Efficiency

 Integrate WMS Throughout the Enterprise

 Improve Warehouse Management Functions
Increase Efficiency of All Resources

Warehouse Efficiency

Worker Productivity Resource Utilization Inventory Utilization

• Automate Warehouse • Optimize Total • Reduce Inventory
Processes Warehouse Space Carrying Costs
• Optimize Task • Maximize Use of • Streamline
Assignments Equipment Material Flow
• Reduce Inventory
• Reduce Worker • Optimally Locate Obsolescence
Travel Time Inventory to Reduce
Travel Time • Automate
Replenishment
 Worker
Automated Task Management Productivity
Create, Organize, Dispatch Tasks to Optimal Resource

Pick Wave Task Queue

Create & Split

Allocate Merge
Task Sort

• Dispatch Tasks To • Create Paperless,

RF Devices
• Support Multiple
Picking Methodologies
• Match Skills and
Equipment to Tasks
• Perform Task Sequencing
and Interleaving
Streamlined Processes
• Align Pick Plan with
Business Mix
• Reduce Safety Issues
and Training Costs
• Significantly Reduce
Travel Time
 Automated Compliance Labeling
Meet Customer Specific Requirements

• Support Numerous Types and Variations of Labels

- LPN, LPN content, LPN summary, material, serial, location,
shipping, shipping contents, WIP contents
• Flexible to Meet Your Business Needs
- Design and rendering choices
- Highly flexible configuration
- Adapts to changing
requirements
• Data Transmitted via XML
directly to printer or via
middleware of choice

Print at the Right Time in the Correct Format

Barcode and License Plate # Support
Perform Complex Inventory Transactions

Multiple Packages Single Unique Number

and Products for All Information

Barcode Support Container and LPN* Support

• Automatically Track All • Supports Infinite Nesting Levels
Related Product Information • Perform Complex Moves via a
• Capture All Information Single Scan
with a Single Scan • Fully Integrated with ASNs

Reduces Cycle Time & Improves Efficiency,

Improves Accuracy Accuracy, and Tracking
*License Plate Number
 Cross-Dock and Direct Ship
Selectively Accelerate Warehouse Material Flow

Cross-Dock

Pick
Receive Inspect Deliver Put-Away Inventory Pick Drop Ship
Release

Direct Receipt Direct Ship

• Configurable flows • Adjust implementation to business

• Express ASN receipt • Accelerate receiving process
• Cross-docking • Reduce handling and inventory
• Express picks & load • Increase operator efficiency
• Direct ship • Support lean mfg processes
 RFID-Initiated Shipping and Receiving
Process Transactions with No Manual Intervention

RFID (3) Interface to readers,

Middleware clean and filter data,
(Oracle AS) then pass IDs to
application

(4) Access objects

(1) Load of pallets and / (2) Drive load associated with the
RFID Event
or cartons with RFID through RFID ID's (e.g. LPN's on ASN)
Processor
tags on each Reader in then raise correct
Receiving Dock Business Event

(5) Access associated (6) Process the

source document Application Business Event,
(e.g. the PO’s ASN) APIs (e.g. Receipt of
pallet or carton)

Response (7) Confirm success or

(8) Putaway, rescan
& Exception failure (e.g. trigger
or divert
Handling green light or sound
material
buzzer)
 Resource
Directed Picking and Put Away Utilization
Automatically Suggest Optimal Locators

Receipt Locator
Locator

Pick Locator
Business
Logic

• Slot dynamically based • Optimize the use of

on velocity, size, etc. storage locations
• Control hazardous • Minimize inventory
materials / co-mingling fragmentation
• Handle task exceptions • Reduce chance
with reason codes of obsolescence
 Inventory
Advanced Inventory Capabilities Utilization
Provide Single Source of Truth for All Inventory

• Maintain Accurate, Real-Time Information

- Physical inventory measurement
- Holding and other associated costs
- Cycle counting

• Manage Inventory Levels

- Automated replenishment
- Kanban management
- Transfers between facilities

• Support Advanced Tracking Capabilities

- Material status control
- Inventory ownership tracking
- Advanced lot and serial control
Performance Management Tools
Proactively Manage Warehouse Performance

• View current status, perform transactions and calculate

availability via Materials Workbench
• Monitor and refine facility activity via Control Board
• Provide real-time status
with active alerts and
notification messaging
• Handle last minute
changes with
workflow exceptions
• Keep key personnel
informed with multiple
reporting options
Oracle Warehouse Management Solution

Enables you to…

 Support Lower Cost of Ownership

 Increase Warehouse Efficiency

 Integrate WMS Throughout the Enterprise

 Comprehensive Logistics Solution
Integrated Logistics Adapts to Changes

Carriers / Global
3PLs Customers

Collaboration &
Event Management

Pack
Book / Manage Pick &
Plan Rate & Track Settle
Inbound Tender Wrhs Label
Ship Outbound
Supply Demand
Source Integrated Planning & Execution Destination
Continuous On-Time Customer Carrier
Improvement Performance Satisfaction Analysis
Comprehensive Logistics Solution
Enables Cross-Functional Process Optimization

Planning Warehouse
(Plan & Monitor) Inventory (Store & Manage)
Optimization

Supply /
Demand
Dynamic Matching
Stage &
Rerouting
Cross Dock
& Drop Ship

Transport
(Move & Track)
WMS and Manufacturing
Extends Beyond Sales Order Inputs

• Solution Integration Enables:

- Task-managed component picks
- Cross-dock to / from manufacturing
Sales Manufacturing - Directed ship from manufacturing
Orders Processes - Compliance labeling
- LPN and lot / serial creation
and tracking

• Supports Full Spectrum of Tasks:

- Simple kitting to full BOM / work
order jobs
WMS Solution - Seamless CTO flow
 WMS and Service / Spares
Integrate all Inventory Transactions

Warehouse Mgmt Manage high volume DC operations (pick,

pack and ship) with WMS and leverage
internal orders to release parts to the field

Distribution Center

• Provide a single, common view of

all inventory
• Integrate and manage internal and
Regional / Field Field Technician
field inventory locations
Warehouses Stock
• Consolidate / coordinate all field
Service / Spares Mgmt requests to maximize DC efficiency
 Integrated Throughout
Entire Offering…

Business Intelligence
Deliver Daily Business Intelligence
Real-Time Access to Complete Business Information

What is my inventory accuracy for all products?

What are my labor costs for each warehouse?

What are my book-to-ship and receipt-to-putaway cycle times?

How is my warehouse space utilization changing?

How are inventory turns and quantities changing?

– Objective: Set institutional targets

Manage By… – Fact: Provide performance-based metrics
– Exception: Continuously evaluate performance
Manufacturing and Inventory Intelligence
Timely, Accurate, Relevant

Flexible Flexible
Time Periods Comparisons
• Daily updates on
key performance
Real-Time indicators
Results

• Actionable
information on
Performance Links savings and
Measures Reports
incremental
revenue
opportunities
• At a glance:
- Inventory quantity
and turns
- Inventory accuracy
Graphs
- Pick-to-ship cycle time
- Warehouse labor costs
Oracle Warehouse Management Solution

Single global instance, mobile Support Lower Cost

applications, built-in integration, of Ownership
barcode and RF capabilities

Optimized space and warehouse

utilization, improved worker Increase Warehouse
productivity, flexible process flows, Efficiency
monitoring and mgmt capabilities

Integrate WMS
Out-of-the-box integration, full
Throughout the
logistics support for all SCM flows
Enterprise
 Oracle Warehouse Management Products

Develop
Contracts Market

Projects Sell
HR Customers, Order
Suppliers,
Finance Products, … Plan
Inventory
Maintain Procure Management
Service Make Warehouse
Fulfill Management
Mobile Supply Chain
Applications
Logistics Intelligence
 Evolution of Oracle Logistics
Base Differentiators…
• Built-in, not bolt-on - RF/mobile
technology & transaction
integration
• Flexible rules-based processes
• Configurable material flows
• Inbound logistics – receiving,
inspections, directed put-away,
cross docking, ASN
• Outbound logistics – dock
assignment, pick wave
selection, picking methods,
cartonization / packing,
shipment execution, trip &
delivery planning
• Advanced inventory mgmt –
container & LPNs, lot/serial
genealogy, status, Kanban
• Reverse logistics – RMA
receiving, supplier returns,
refurbishment & recycling
New in 11i.9…
• VMI & consigned inventory
• Task & labor plng control board
• Delivery consolidation by
locator and / or LPN
• Cluster picking & WIP picking
• eAM component picking
• UPC & smart barcode support
• Single mobile UI for all
receiving transactions
• Additional material handling
equipment integration
• Simplified rules engine def’n
and examples library
• Load tendering
• Online tracking of ship status
• Carrier selection & freight rating
• Automated shipping processes
• Non-conformance mgmt
New in 11i.10…
• Configurable picking &
streamlined shipping UI’s
• RFID-based transactions
• UCC 128 / UCC 14 support
• Work-plan based put-away
• Catch weight support
• Packing workbench
• Over picking & bulk picking
• Inbound transport logistics
• Freight payment & audit
• Delivery consolidation
• Truckload rating
• Transportation planning – load
consolidation, continuous
moves, automated mode and
carrier selection
• International drop shipments
• Logistics-related analytics/KPIs
 Customer
Case Studies
 • Global manufacturer of insulated food and beverage containers,
soft coolers, and lunch kits
• Live on 11i
- Warehouse Management, Order Management, Financials,
E-Business Suite On Demand
- Saved $665K in one-time and $180K in annually recurring IT costs
- On track to save $6.2M through efficiency gains for 222% ROI
- Shortened monthly close from 6 days to 2 days
“With more demanding on-time requirements, inventory accuracy is essential. With
Oracle Warehouse Management we know exactly what product we have, and where,
at any point in time and the accuracy level is so high that our auditors no longer
require us to take a physical inventory." -- Mike Yeager, Director of Logistics

 Reduced inventory by $300K, expects to cut an additional $600K

 Raised warehouse labor productivity by 15%, expects to reach 29%
• Manufacturer, sells and distributes quality informal tableware,
cookware and mugs
- Headquartered in the UK with operations in Europe, North
America, Australia, Asia,
• Live on 11i
- Warehouse Management, Procurement, Financials, Human
Resources
- Chose Oracle WMS to streamline supply chain execution from
manufacturing to shipment
- Goal: achieve 100% paperless warehouse

 Increased small order picking productivity by 200-300%

 Ship 30% more product without an increase in headcount
 Increased inventory accuracy to over 99%
• Leading manufacturer of small appliances
- Dirt Devil vacuum cleaners and other leading consumer brands
• Live on Oracle Mobile Supply Chain Apps & Warehouse Mgmt
- Support 2 DCs with 510,000 total sq feet and 8,000 SKUs
- Met 100% of Royal Appliance's mobile barcoding requirements
without the need for middleware or custom integration
- Results exceeded original expectations: scaled to $600M by
adding 10-20 instead of 40-50 people
“The MSCA product quality is extremely high, and we are confident that it
will support the future roll out of Oracle Warehouse Management across
our distribution centers and manufacturing facilities.”
- Dave Brickner, VP of Operations

 Increased inventory location accuracy from 50% to 98%

• Leader in high performance computing, visualization and the
management of complex data
- Over 2,600 employees serving 5 key markets: Government &
Defense, Sciences, Manufacturing, Energy and Media
• Live on 11i
- Warehouse Management, Discrete Manufacturing, Order
Management, Incentive Compensation, iProcurement,
Financials, Financials and Sales Analyzers
- Rapid implementation; less than 2 months from CRP
- Maintained service levels, despite a reduction in staff
- Achieved ROI in half the expected time (6 versus 12 months)

 Increased inventory accuracy to 97%

 Recovered $500K of “lost” inventory
• $419M leader in high-performance enterprise Storage Area Network
systems
- 1,020 employees across the U.S., Europe and Asia
- Manufactures and markets high-performance switching equipment
and heterogeneous network mgmt software
- Replaced Siebel and SAP with Oracle
• Live on 11i
- Warehouse Management, Configurator, Order Mgmt, Discrete Mfg,
Purchasing, Financials, TeleService, Depot Repair, Service Contracts
- Projects a five-year cumulative ROI of 352% on Oracle E-Business
Suite implementation
- Support complex ‘configure to order’ fulfillment process

 On-time shipments increased from 79% to more than 97%

 Reduced total inventory 75%
 Oracle Warehouse Management

Support Lower Total Cost of Ownership

Increase Warehouse Efficiency

Integrate WMS Throughout the Enterprise