NCOAUG - Chicago February 13, 2002

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

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

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

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

5. Total Logistics Cost See next slide for a further breakdown Source: Collection of Multiple Studies and DigiTerra’s Experience - “Best Practice Data”

6. Total Warehouse Cost Source: Transportation and Distribution - “Best Practice Data”

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

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

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

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

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

12. WMS Benefits - Quantifiable Summary Source: Gartner Group

13. WMS Benefits - Qualifiable • Support for web-based order taking • Support for web-based order status • Improved visibility through entire organization • 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

14. Pick & Pack Pick, Pack & Ship Order Planning Receiving Putaway Reverse Logistics Shipping • Carrier Scheduling • Expected Receipts • Unexpected Receipts • ASN • PO Matching • Cross-docking • QA Inspection • Exception Management • Location Assignment: System Directed • RF Directed • Put Confirmation • Forward Pick Replenish • Exception Management • 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 • Pick by Order, Batch, or Wave • Pick/Pack or Pick & Pack • Pick Confirmation • Paper or Paperless • Exception Management • Shipping Confirmation • Carrier Scheduling • Dock Management • Staging & Loading • Exception Management • Returns Processing • Returns Authorization • Check-in process • Disposition • Return to inventory • Customer Self-Service Tenderheart’s goals accomplished through Oracle WM

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

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

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

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

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

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