Driving Operational Efficiencies and Increasing ... · Management delivery sales Portal order DC...

Inforum 2017 Template

Driving Operational Efficiencies and

Increasing Profitability of your Supply Chain

Ashish Kawale, Principal Business Consultant

Infor – India, ME and Africa


Warehousing challenges for retail and e-commerce distribution companies

• Severe pressure to increase the productivity and performance of their warehouse operations to cater to the ever growing demand

• Increasing compliance demands mean retailers must enhance warehouse visibility if they are to remain competitive, protect their profitability, and position themselves for continuing growth

• Shortened fulfillment times - 12 to 24 hour cycle times from 36 to 48 hours earlier

• Large number of orders with small number of quantities per order

• Handling high number of returns from customers


The Replenishment – Continuous Loop

E-com

portal DC Supplier

Exception

Management

sales delivery

Portal

order

DC

order

Order Fulfillment

Portal

Order

Forecast

Demand

forecasting

Portal

info

Stock

level

Demand Forecasting DC

Replenishment

DC

delivery


Supply Chain Design: Product Flow Design

Customer Suppliers

Regional

DC

Local

DC

Bulk

DC

Customer

Customer

Customer

Fresh/ Frozen

Foods General

Merchandise Furniture


Top Pressures and Challenges faced by Best-in-Class Companies

Source – Aberdeen Report on Warehouse Productivity Benchmark


Actions planned to improve warehouse operations

Source – Aberdeen Report on Warehouse Productivity Benchmark


Best-in-class companies out-perform Average and Laggards

Source: Aberdeen


Need For A Best-Of-Breed WMS

10%

15%

55%

20%

Receiving

Put-away

Order Picking

Miscellaneous

Warehouse Operational Cost Break-up

65%

15%

10%

10%

Order Picking Cost Break-up

Travelling

Searching

Extracting

Paperwork

Source: Dr. E. H. Frazelle. World-Class Warehousing. Logistics Resources International.


A Best-of-Breed WMS Helps You To Achieve:

Labor savings: 20-40%

Productivity improvements: 15-40% or more

Inventory Integrity: 99.7% or more


What A Best-of-Breed WMS Does…

Improves order cycle times with the number of same resources

System directed tasks instead of supervisor directed tasks

Find inventory faster, move orders faster, over multiple bin locations

Time Results Touch


Time

• SKU

• Quantity

• Lot

• Lot Attributes

• Serial number

• Status / Hold codes

Bin level visibility across multiple facilities:


Time

• Slotting based upon inventory movement, product groups and UOM

• Reduces extraction time

Slotting:


Time

• Frequency

• Scheduling

• Product Classification

• Trigger cycle counting based on exceptions

Timely Cycle Counting:


Time

• RF Picking strategies based upon zone

• UOM based Allocation and Picking strategies

SKU specific picking rules


Time

• Alerts on exceptions

• Warn users of missing deadlines

• Escalations upon non-attendance of tasks

Automated Exception Alerts


Time: Visual Warehouse Viewer


Time: Dashboards and KPI Charts


Time: Exception based alerts


Time

• Improved inventory availability

• Reduced inventory levels

• Increased inventory turns

• Reduced pilferage, loss, damage

• Reduced cycle time due to automated feedback

Results:


Touch

• RF directed put-away

• RF directed picking

• Voice directed picking

• Dynamic Task Management

• Task interleaving

System Directed:


Touch

• Rules determine the best location:

• Best fit

• Dedicated or random location storage

• FIFO, FEFO, LIFO

• Status (damage, quality)

• Product sampling and inspection rules

Directed Put-away:


Touch: Flexibility and Efficiency

• RF

• Voice

• Order

• Cluster

• Batch

• SKU group

• Efficient Pick path

• FIFO, LIFO, FEFO

• Tasks are placed into an RF “task queue”

• Work is then prioritized : efficient & right sequence

Labor Efficiencies:

Multiple Picking options:

Multiple types of picking:

Rules Based:


Reduced errors: < 0.1%

Hands/eyes free: 25% productivity

Reduced training time / multiple dialects

Touch: VOICE


Customer Proof Point –

Future Supply Chains


About Future Supply Chains

Line of Business (LOB)

FSC CL (Contract Logistics)

FSC Express

FSC IL

FSC Brand Distribution

Shared Services

Fashion

Auto

Furniture &

CDIT

Foods /

FMCG

IT & Systems Commercial Projects &

Process HR & Admin.

Engineering

Pharma

- 4PL

- Key Account Mgt.

- SC Solution Design

- Reverse Logistics

- Ground Express

- FTL Express

- International

Logistics

(Ocean & Air)

- Freight Forwarding

- Custom clearance


Future Supply Chains - Journey with Infor

Implementation of Infor WMS begins at Hasangarh (North India) Jan 2009

First DC for Apparel and GM goes live May 2009

11 DCs live on Infor WMS – Big Bazaar and Pantaloons Sep 2011

Put-to-Light (PTL) and Conveyor system integrated with Infor SCE

First DC for Furniture and Electronics went live

Nov 2011

400,000 SFT DC - Fashion, Home Fashion, GM, Furniture and

Electronics – Highly automated DC uses Infor SCE integrated to MHE


Keys benefits in critical warehousing parameters

Parameters TTM CTM SALES

DC

S

olu

tio

ns

• Enabled faster and higher throughputs from the same warehouse (increase by > 40%)

• Reduced inventory levels due to better space utilisation while sales increased

• Reduced - obsolescence, damages & hence markdowns

• Reduced shrinkage

• Improved stock accuracy to 99.5%

• Reduced resources and time at store receipts due to high accuracy

• Through-put increased from 30,000 to 250,000 pieces/day during peak and 200,000 during normal days (Nagpur CDC

reported 800,000 pieces per day and with the new high-speed cross-belt sorter, a target of 1.6 Mn per day)

• Pick and Pack Pendency Reduced to almost Nil on 48 hrs basis.

• Manpower costs reduced by 20% and Space utilization increased by 20% Ke

y R

es

ult

s

Template v5 October 28, 2014

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Driving Operational Efficiencies and Increasing ... · Management delivery sales Portal order DC...

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