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Buckeye Warehouse Project at Philosophy

Oracle Warehouse Management System

DAZ Systems, Inc.Walt Zipperman, Partner

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WMS at Philosophy Agenda

Background for the Project

Introduction to Philosophy Inc

Scope of the project

Pain Points & Drivers

New Features

Implementation Considerations and Challenges

Q&A

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Background of the Project

Philosophy Inc. More than 200M in Revenue Skin Care, Bath and Beauty

Full EBS Suite Implementation Live April 2009 – Financials– Process Manufacturing– Distribution– Planning– Warehouse Management System– B2B

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Introduction to Philosophy Inc

Portfolio member of The Carlyle Group Founded in 1996 Size and Growth:

– Average 20% Annual Sales growth Profile:

– Research, Manufacturer and Distributer – Operations in US and UK, currently operates 3 warehouses

Products:– Skin Care Products – Bath and Beauty– Perfume

Brands– Philosophy

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Scope of the Project

New Warehouse with 225k Square Foot– New Racking System Supports Single SKU per Locator– New Conveyer Systems

Consolidate Three Physical Warehouse Locations– Production Facility to Occupy One Facility– Distribution to Occupy Separate Facility

Increase Efficiency in Order Fulfillment Process

Enhance Existing Forecasting System Interface

Upgrade Web Interfaces

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Pain Points and Drivers

Reservations/Allocation Management – Labor Intensive to “borrow” Against Existing Reservations– Unable to Redistribute Reservations Quantities Systemically

Solution: Create Dynamic Reserve Unreserve program

Limited Fill Rate Visibility– Unable to Achieve Targeted Fill Rates for Top Customers – Extensive Order Handling to Achieve Targeted Rates

Solution: Customer Hierarchy and Fill Rate Forms1. Preset Fulfillment Target Rates by Customer Class2. Reservation Created and Sequenced by Customer Class3. Custom Fill Rate Form to View Exceptions and Allow Override

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Pain Points and Drivers Pick Release Visibility

– Unable to Plan Labor for Pick Waves – Replenishment Not Tied to Pick Release

Solution: Custom Pick Release Form1. Order Availability Driven by Fill Rate2. Pick Wave Calculation of Labor Time by Pallet, Case and Each3. Replenishment Indicator Prompt when Insufficient Quantity

Warehouse Management Inefficiencies– One LPN Per Receipt– Discrete Pick Only– Labeling Performed at Conclusion of Process– No Cartonization in Retail Pick– No Quality Audits– Case Count not Predetermined– Limited Lot Swapping Functionality– No LPN Visibility on RF Handhelds

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Pain Points and Drivers

Solution: Warehouse Upgraded Features

1. Single LPN per Pallet2. Discrete Zone and Each Pick3. Shipping Label Applied Prior to Pick4. Cartonization for Retail Pick Customer5. Quality Audits Systemically Driven6. Predetermined Case Count7. Complete Lot Swapping8. LPN Visibility on RF Handhelds

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New Features – Fill Rate Form

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New Features – Pick Release Form

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Implementation Considerations and Challenges

Investigated 12.1.2 Upgrade versus Current 12.0.6 Limited Timeframe

– Project Start Date 3/22/2010– Warehouse Conversion – Project Go-live 6/1/2010

Coordinate Physical Warehouse Consolidation without Systemic Interruption

Maximize Standard Functionality Provide Extensions and Customizations to Enhance

Functionality Accommodate New CMS System and Interface Partner with 3PL Organization, Designing Warehouse Layout

and Warehouse Build-out

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AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S