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Supply Chain Execution: WMS TMS

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Supply Chain Execution: WMS TMS Brian Graystone, MBA www.aflux.com.cn SC Software Visibility Optimization Execution Convergence Warehouse Management System (WMS ... – PowerPoint PPT presentation

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Title: Supply Chain Execution: WMS TMS


1
Supply Chain Execution WMS TMS
  • Brian Graystone, MBA
  • www.aflux.com.cn

2
SC Software
  • Visibility
  • Optimization
  • Execution
  • Convergence

3
Warehouse Management System (WMS)
  • Management system to assist in running the
    warehouse
  • WMS success is normally driven by proper design,
    functionality, vendor selection and
    implementation

4
WMS
  • Use a structured approach to selection
  • Economic justification
  • What problems do you want the WMS to solve?
  • Optimize current processes
  • Detailed bid specification
  • Vendor selection
  • Implementation

5
WMS Benefits
  • Real-time information with RF and bar coding
  • Location management
  • Cycle counting
  • Labour and equipment assignments
  • Pre-receiving (ASN, inbound logistics)
  • Task interleaving
  • Quality initiatives

6
WMS benefits
  • Error reduction
  • Inventory accuracy
  • Cube utilization - random storage, directed
    putaway
  • Virtual locator system
  • Routing of MHE for putaway and picking
  • Lot functionality
  • FIFO support

7
WMS benefits
  • Security
  • Picking methodologies
  • single order
  • wave
  • batch
  • Historic log of all transactions
  • Documentation
  • Management and performance reporting

8
WMS benefits
  • Value-added activities
  • stripping
  • tagging
  • folding/hanging
  • packaging
  • labeling
  • Returns recalls

9
WMS benefits
  • Rewarehousing
  • directed by velocity/storage methodology
  • seasonality
  • Numbers
  • inventory accuracy - 99
  • labour productivity - up to 40
  • space utilization - up to 90
  • customer service - priceless

10
Transportation Management System (TMS)
  • Many systems exist to optimize the mode and usage
    of transportation
  • Focus
  • Routing
  • Minimizing cost
  • Minimize number of vehicles
  • Maximize consolidation
  • May be used for ground, multi-modal or even ocean
    transportation
  • Ratings engine for selection of best carrier
    based on urgency and cost

11
TMS
  • TMS often uses an optimization algorithm to
    achieve the desired goals
  • Traveling Salesman problem
  • Tabu search
  • May achieve a sub-optimized solution that can be
    used
  • Due to the time taken to achieve an optimized
    solution
  • Recalculations as data changes

12
TMS
  • Accommodate restraints
  • delivery time windows
  • work rules
  • redispatch
  • vehicle capacity
  • different origin destination
  • barriers (bridges, ferries, construction, etc.)
  • speeds - city, urban streets, long-haul
  • special handling - tailgate, MHE

13
TMS
  • Work as crow-fly distances with scaling, or
  • GIS street-level
  • Savings can range from 10 to 25 of
    transportation costs

14
Integration of two systems
  • Each system works to execute within its own
    sphere
  • Constant changes in orders, quantities,
    destinations require real time exchange of
    information and recalculations
  • Ideally, WMS TMS work together to plan and
    execute the picking and load plan, mode of
    transportation and routing

15
Integration of two systems
  • Requirements
  • execution of transportation plan to the WMS
  • real-time data of order(s) status to the TMS to
    update planning
  • integrated database and master file structure
  • compatibility of system architecture
  • ability to easily change the table-driven
    functions such as adding carousels or algorithm
    parameters

16
Further...
  • WMS - Mike Gibson from iLink
  • TMS - Lisa Blewett from ESRI

17

18
MWM Functions
Counting
Picking
Consolidation
Bulk
Shipping
Incoming Inspection / Putaway
Receiving
Crossdock
19
Receiving
20
Receiving Benefits
  • Paperless
  • Goods handled once when received
  • Eliminate clerical effort
  • Eliminate cost of receiving wrong product
  • Goods immediately available to inventory / order
    entry system

21
Special Receiving Capabilities
Generation of Barcode Labels Unexpected Receipt
Handling FIFO Lot Control Serial Number capture
U.O.M. Conversion Single step Receive / Putaway
22
Quality Control
  • WM provides QC Hold, Inspect and Release
    Functions right from the Handheld
  • Can be integrated into receiving

23
Putaway
24
Putaway Benefits
  • Directed Activity
  • Multiple Putaway methods
  • No searching for empty locations
  • No more move tags
  • Putaway to the right location dynamically
  • Fill outstanding requests first
  • Paperless - eliminate clerical / data entry
    effort and errors
  • More moves per hour
  • Product immediately available to pickers

25
Letdown / Replenishment
26
MWM LetDown
  • Directed Activity
  • Paperless
  • Eliminate clerical / data entry effort and errors
  • Proactively supply material to pick areas.
  • Supply vs Demand

27
Moves
28
MWM Move Benefits
  • Moves are tracked without paper
  • Real time capture and update prevents negative
    impacts on picking or locating product
  • No more lost on cart situations.

29
Picking
Lot Control
FIFO
Wave, Zone, Label
30
MWM Picking Benefits
  • Empower warehouse staff
  • Increase job satisfaction
  • Develop standards and monitor productivity
  • Decrease training time for new employees or temps
  • Increase Labour Capacity - decreasing need for
    temps or overtime

31
MWM Picking Benefits
  • Dramatically reduce picking errors
  • Validate during pick process
  • Eliminate short and over picks
  • Eliminate the need for checkers
  • Real time, automatic update to the host for
    inventory status and customer inquiry
  • Eliminate the paper
  • Eliminate clerical / data entry effort and errors
  • Produce pack slips and/or labels

32
MWM Picking Benefits
  • Maximize pick efficiency
  • Directed pick path using best pick locations
  • Wave and split picking
  • No searching for product
  • Ensure FIFO, FEFO and / or Lot Control
  • Manage Order Priority
  • Automatic allocation of orders

33
Consolidation
34
Shipping
35
Shipping
36
Shipping Benefits
  • Automatic production of shipping documents
    including labels, waybills, manifests and bills
    of lading
  • Automatic Freight Rating
  • Automatic Update to Host
  • Improve freight management with shipping reports

37
Counting
38
Counting Benefits
  • Increased Inventory Accuracy and Availability
  • Reduced Counting Labour
  • Eliminate Physical Count
  • Execute Cycle Counting without freezing or
    interrupting warehouse operations
  • Directed Activity
  • Paperless
  • Better utilization of labor by cycle counting
    during slow periods

39
Task Manager
40
Task Manager Benefits
  • Manage proactively predict staff requirements
    early and dynamically as situations change
  • Objectively measure staff performance and
    activity levels
  • Improve customer service instantly identify the
    status of any order
  • Provide powerful support data

41
Extensive User Control
  • Extensive definitions of user permissions
  • Variable picking validation
  • Configurable System Operation - Extensive build
    in switches for system operation choices

42
(No Transcript)
43
ArcLogistics Complete, Easy to Use Routing
Solution for Your Desktop
44
What is Logistics
  • Getting the right Goods or Services to the right
    Place at the right Time for the least Cost

45
The Supply Chain Process
The Customer
Delivery Service
Marketing Sales
Order Fulfillment
Order Creation
Order Entry
Inventory Deployment
Production Planning
Inventory Management
Purchasing
Production
46
ArcLogistics Route
The Customer
Delivery Service
  • ArcLogistics Route is for
  • Delivery and Field Service Vehicle
  • Routing and Scheduling

47
ArcLogistics Route
The Customer
Delivery Service
  • Perhaps THE most important Link in the Supply
    Chain
  • ...the link the customer sees.

48
Why is Vehicle Routing Scheduling Important?
Mileage
Time Windows
Maintenance
Cycle Time
Wages
Accuracy
Fuel
Quality
Efficiency
Accountability
Productivity
Overtime
49
Why is it important?
  • Customer Satisfaction (Sales)
  • Logistics Costs 10-15 of Revenue (Profit)
  • Good Logistics Sales and Profit
  • Problem Finding the Balance

50
What is ArcLogistics Route?
  • How does it help?

51
What is ArcLogistics Route?
  • A New PC Application to Automate Routing and
    Scheduling
  • A Way to do Routing and Scheduling Better
  • Reduce Costs
  • Increase Productivity
  • Improve Customer Satisfaction

52
List View
Map View
Time View
53
Why is it important?
Actual Case Study
  • Geocoding Accuracy
  • Delivery Time Window
  • On-time Performance
  • Time Spent Routing
  • Miles per stop
  • Stops per Truck
  • Dispatch Facilities

After 95 2 hours 95 30 minutes 1.2 20 6
  • Before
  • 55
  • 4 hours
  • 78
  • 8 hours
  • 1.6
  • 16
  • 46

Computer-based logistics can reduce costs from
10-30 !
54
Savings
  • Sears saves 51 million annually !
  • Southern California Gas Co. saves
  • 2 million miles and
  • 75,000 hours annually !

55
What does ArcLogistics Route do?
  • 1. Geocode Stops
  • 2. Optimize Routes Schedules
  • 3. Manifests, Maps, Directions, Reports

56
Key Features
  • Ease of Use (up and running in 2 days)
  • Price (1/5 nearest competitor)
  • Uses Real Streets (not crow flies distance)

57
Additional Features
  • Multiple Vehicle Assignment
  • Multiple Depots
  • Time Windows
  • Maps in Manifests
  • ODBC Standard
  • SAP R/3 interface included
  • Customizable Reports
  • GIS Compatible

58
Who is it For ?
  • Anyone who has to
  • Find Order addresses (stops)
  • Assign stops to vehicles/drivers
  • Sequence the stops
  • While considering
  • Time Overtime, unproductive time, resource
    available time, customer time windows
  • Minimizing Cost
  • Capacity
  • Maximum Productivity
  • Many route alternatives
  • Customer Service Happy Customers

59
Who is it For?
  • Food
  • Bakery
  • Snack
  • Dairy
  • Grocery
  • Beverage
  • Bottled Water
  • Beer
  • Softdrinks
  • Vending
  • Replenish
  • Service
  • Collection
  • Health Care
  • Home Health Care
  • Equipment Delivery
  • Medical Samples/Courier Service
  • Patient transportation
  • Transportation
  • Less than Load
  • Courier
  • Private Fleet
  • Third Party Logistics Providers
  • Telecom and Cable
  • Service dispatch
  • Maintenance scheduling
  • Inspection
  • Gas Utilities
  • Service
  • Set meter
  • Customer service order
  • High billing investigation
  • Seasonal light
  • Turn on/Turn off
  • Manufacturing
  • Distribution

60
Who is it For? More...
  • Electric and Gas
  • Service dispatch
  • Maintenance scheduling
  • Inspection
  • Water/Waste Water
  • Skip Readers
  • Industrial Sampling
  • Turnon/Turnoff
  • Local Government
  • Building Inspectors
  • Property Appraisers
  • Public Works
  • Case Workers
  • Petroleum
  • Propane delivery
  • Service station
  • Field Service/Repair
  • Computing and office automation
  • Medical equipment
  • HVAC R
  • Food Processing equipment
  • Industrial equipment
  • Home Appliance repair
  • Retail
  • Home Delivery
  • Store replenishment
  • Insurance
  • Dispatch Claims Inspectors
  • Waste Management
  • Commercial pickup
  • Fast Food Delivery

61
Typical Benefits
  • Reduce Costs
  • Increase Productivity
  • Improve Customer Service and Satisfaction

62
Typical Benefits More...
  • Reduce Costs 10-30
  • Minimize Mileage
  • Minimize Overtime
  • Minimize Vehicles
  • Reduce Time Spent Routing
  • Reduce Wait Time

63
Typical Benefits More...
  • Increase Productivity 10-30
  • Service More Customers with the Same Fleet
  • Respond to Same-Day Requests
  • Reduce Cycle Time
  • Lower DriverDispatcher ratio

64
Typical Benefits More
  • Improve Customer Service and Satisfaction
  • Offer Tighter Time Windows
  • Keep the promise On-time Performance
  • Establish Reputation
  • Customer Retention

65
Typical Benefits More...
  • Side Benefits
  • Workload Balancing
  • Driver Accountability
  • Reduce Off-route miles
  • Follow Time Window Sequence
  • Management Reporting for Better Planning

66
How Does ArcLogistics Route Work ?
  • Three Key Components
  • GIS
  • Operations Research
  • Logistics

67
New Approach
Logistics
GIS
Balance Cost and Customer Objectives
to Maximize Sales and Profit
Better Decisions Through Better
Spatial Information
Operations Research
Better Decisions through Mathematical Models
68
New Approach
Logistics
GIS
Balance Cost and Customer Objectives
to Maximize Sales and Profit
Better Decisions Through Better
Spatial Information
Operations Research
Better Decisions through Mathematical Models
69
GIS
  • What is it?
  • How does it help?

70
What is GIS ?
Customers
Depots DCs
Street Networks
  • Digital Map
  • Analysis
  • Where is it?
  • How do we get there?
  • Whats near there?

Work Areas
Census Tracts
Market Potential
71
GIS is Visualization
72
GIS is . Analysis
Where do my customers come from? How much do they
spend?
73
GIS is Data Management
74
How Does GIS Help?
Customer Database
- Street Topology/Speed - Address Ranges -
Graphics
Dispatcher Driver
75
How Does GIS Help?
  • Geocode
  • Customer Addresses
  • Depot Locations
  • Driver Homes

76
How Does GIS Help?
77
How Does GIS Help?
  • The Road Network
  • Street Connectivity
  • The best way to get from here to there
  • Natural Barriers
  • Mountains, Rivers, Lakes, Deserts
  • You cant get there from here

78
GIS Data Management
GIS Automatically ...
.
builds a street connectivity database
38 million streets in the U.S.
79
(No Transcript)
80
How Does GIS Help?
  • Helping the Driver get there
  • Maps
  • Directions

81
How Does GIS Help?
82
New Approach
Logistics
GIS
Balance Cost and Customer Objectives
to Maximize Sales and Profit
Better Decisions Through Better
Spatial Information
Operations Research
Better Decisions through Mathematical Models
83
Logistics
  • Constraints
  • Costs

84
Types of Routing Problems
  • Dynamic Routing Create routes with few
    constraints as to which route stops are assigned
  • Fully Dynamic
  • physical constraints - amount of product truck
    can carry, etc...
  • time constraints - customer open/close times,
    max. hours per route
  • Partially Dynamic
  • territorial - setting geographic limitations such
    as sales/delivery territories
  • customer - priority customers, dedicated routes,
    vehicle restrictions/requirements

85
Constraints
  • Hard Constraints
  • Capacity
  • Weight
  • Volume
  • Max Orders
  • Start Time
  • Service Time
  • Specialty
  • Locked Orders
  • Soft Constraints
  • Time Windows of Orders
  • Start Time
  • Time Windows of Locations

86
Unconstrained vs. Constrained Routes
87
Time Windows
  • Soft Constraint
  • Minimize time window violations.
  • Tight Time Windows will result in more Overtime,
    Wait Time, and Drive Time.
  • The wider the window, the more circular the
    route, and lower cost.
  • Drivers often wont run a sequence that doubles
    back because of time windows. They think they
    can sequence the route better.

88
Time Windows
Time Window
89
TW Violations
Predicted Time Window Violation
Predicted Time Window Violation
Predicted Time Window Violation
90
Capacity
  • Hard Constraint
  • Checks capacity before solving
  • Weight
  • Volume
  • Maximum Orders
  • Weight and volume can be anything
  • Palettes, cases, kegs, pianos, pigs, gallons.

91
Vehicle Capacity
Weight, Volume Constraints
Minimum, Maximum Orders
92
Capacity Warning
93
Start Time
  • Soft or Hard Constraint
  • When expressed as a range, ArcLogistics will find
    the best start time to minimize cost. Allows for
    schedule compression.
  • When start and end time are the same,
    ArcLogistics will use that time even if costs are
    higher.
  • Used to reduce unproductive (wait) time.

94
Start Times
Working Hours
95
Flexible Start Times
96
Service Time
  • Hard Constraint
  • ArcLogistics will always use the service time
    specified

97
Service Time
Service Time
98
Specialty
  • Hard Constraint
  • An order with a specialty must be serviced by a
    vehicle with a corresponding specialty
  • ArcLogistics will not assign the order if no
    vehicle/driver exists with the specialty
    necessary to service the order. A warning
    message is displayed.

99
Customize for Different Industries
Characteristics of the Truck
Or skills of the Drivers
Or skills of the Drivers
100
Specialty
Vehicle Properties
Order Properties
Dishwashers
Dishwashers
Must Match
101
Specialty Warning
102
Locked Orders
  • Hard Constraint
  • Sometimes called Pre-Assignment
  • Forces an order to a specific vehicle even though
    this may be sub-optimal
  • Usually due to some business requirement
  • Please send driver Bob
  • Send the technician who took it apart yesterday

103
Locked Orders
Lock Stops
104
Locked Routes
  • Hard Constraint
  • Locks all stops to a specific vehicle
  • Does not allow additional stops to be added
  • Does not allow stops to be removed

105
Costs
  • ArcLogistics translates all objective inputs into
    Cost.
  • Min Mileage Min cost/mile
  • Min O.T. Min O.T. cost
  • Min route length min hourly cost
  • Min Vehicles Min fixed cost
  • Min TW Violation Min Violation Penalty Cost

106
Costs
Operating Costs
107
Example Costs
  • Vehicle Lease Cost
  • Depreciation
  • Maintenance
  • Mileage Tax
  • Prorated driver salary/benefits
  • Insurance
  • O.T. Wages
  • Hourly Wages
  • Avg. Cost/Order
  • Fuel Cost

108
Ways You Can Use Cost
  • Favor Owned vs. Leased Vehicles
  • Favor Full vs. Flex or Part-time labor
  • Favor More Efficient Vehicles
  • Favor More Productive Drivers

109
Time Window Importance
110
Evaluating Routes
  • Dispatchers typically look to see that drivers
    have a balanced work load
  • In terms of miles, and stops
  • However, ArcLogistics takes into account Service
    Time, Drive Time
  • Routes that have minimized costs may not have
    balanced miles or of stops
  • Example
  • Urban vs. Rural Routes
  • Long vs. Short Service Times
  • Manually balancing miles or stops will increase
    costs (usually O.T. or TW Violations)

111
Minimized Cost vs. Balanced Miles and Orders
Minimized Cost
7 hrs
1176.96
3.3 hrs
Balanced Orders
14.2 hrs
1302.66
4 hrs
112
Building Routes Manually
  • Some users may want to do their own assignment
    and sequencing
  • ArcLogistics is designed to support this

113
Building Routes Manually
  • Drag and drop assignment
  • Assign to specific vehicle
  • Drag and drop sequencing
  • Auto-Sequence can be turned off
  • Re-Sequence

114
New Approach
Logistics
GIS
Balance Cost and Customer Objectives
to Maximize Sales and Profit
Better Decisions Through Better
Spatial Information
Operations Research
Better Decisions through Mathematical Models
115
Operations Research
  • How does it help?

116
Solution Methodology
  • Build clusters of stops
  • Sequence stops
  • Swap stops
  • While honoring constraints and minimizing costs

117
Street Network Becomes...
118
Origin Destination Matrix
Order
1 2 3 4 5 6 7 8 9 10 11 12
1 2 3 4 5 6 7 8 9 10 11 12
t,d t,d t,d t,d t,d t,d t,d t,d t,d t,d
t,d
t,d t,d t,d t,d t,d t,d t,d t,d t,d t,d
ArcLogistics builds an OD matrix of the times
and distances from each stop to all other
stops t time d distance
t,d t,d t,d t,d t,d t,d t,d t,d t,d
t,d t,d t,d t,d t,d t,d t,d t,d
t,d t,d t,d t,d t,d t,d t,d
t,d t,d t,d t,d t,d t,d
t,d t,d t,d t,d t,d
t,d t,d t,d t,d
t,d t,d t,d
t,d t,d
t,d
119
Clustering
Work Area Table
Driver
Zone
Zone-based (bucket assignment)
Bob
A
Zone A
Assignment Table
Work Order 1
Driver
Zone
Work Order
Bob
A
1
120
Clustering
Old-fashioned Work Areas
Zone-based
A
B
Driver Bob is overloaded Who should
help? Depends Time, distance,
barriers. Zone-based systems use adjacency tables
C
D
121
Clustering
Seed Points use the street network Geography
Matters
Network-based
  • A seed point approach
  • takes into account the
  • real-world travel time
  • and distance
  • (geography matters)
  • More balanced
  • workloads
  • More accurate time
  • windows

122
Seeds vs. Work Areas
  • Many organizations use polygonal areas to assign
    work to certain drivers
  • To gain familiarity with an area
  • To establish relationships with customers
  • They live near the area
  • However, this can lead to unbalanced workloads.
  • Seeds can be user-defined, or automatically
    generated by ArcLogistics.

123
Seeds vs. Work Areas
  • ArcLogistics uses seeds to do assignment, not on
    area, rather using drive time.
  • The area where the driver works is the same, but
    can overlap with other drivers areas based on
    the workload on any given day.
  • Routes Grow from the seed location, but is not
    limited to that vicinity if there is no work.

124
Sequence and Swap
  • Intra-route improvements

1
3
2
1
Depot
Depot
2
4
5
4
5
3
Forward Insertion
2
3
1
1
Depot
Depot
4
2
5
3
5
4
Backward Insertion
125
Sequence and Swap
  • Inter-route improvement

A1
A3
A1
A2
Depot
Depot
Depot
Depot
A2
B2
B1
B2
B1
B3
Inter-route Switch
A1
A3
A1
A3
B2
A2
Depot
Depot
Depot
Depot
A2
B2
B1
B1
B3
B3
Inter-route Exchange
126
Methodology
  • Ways to sequence 20 customers on one route n!
  • 2,432,902,008,176,640,000 possible combinations.
    (2.4 quintillion)
  • It would take a long time to evaluate every
    permutation. Also not necessary.
  • ArcLogistics uses heuristics. In order to
    overcome the common shortcomings of heuristics
    (trapped in local optima), weve used a state of
    the art method called Tabu Search.
  • Tabu Search can achieve 10 improvement over the
    normal heuristics

127
Methodology

ArcLogistics improvement
Traditional N iterations or, N minutes
ArcLogistics Method
128
Reporting
129
Route Manifest
130
Dispatcher Summary
131
Manager Summary
132
Route Maps
Overview Map for Each Route
133
Vicinity Maps
Vicinity Maps Label Streets Around Each Stop
134
Manifest with Maps Directions
135
Modify Reports
Your Logo Here !
136
Contact
  • Contact info
  • For more information, visit the website below
    please
  • www.aflux.com.cn
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