SMART WAREHOUSE SOFTWARE: A SOLUTION TO EVERY … · fulfillment solutions for the entire Honeywell...

SMART WAREHOUSE SOFTWARE: A SOLUTION TO EVERY SITUATION

NICOLE JAMES

SUZANNE MCGOUGH

June 25, 2020

Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated

PRESENTERS

Nicole James

Senior Director, Software & Voice Product Management

Nicole has held various roles in software development for the

past 25 years, working in several industries. In her current role,

she has global responsibilities of leading distribution and

fulfillment solutions for the entire Honeywell Intelligrated

Software portfolio. Using a blend of product management vigor

and software development expertise, Nicole leverages her

experience to drive solutions in developing software offerings

for today and the future through a focus on collaboration,

quality and execution.

1Smart Warehouse Software: A Solution to Every Situation

https://twitter.com/intelligrated


PRESENTERS

Suzanne McGough

Software Product Manager

Suzanne, a product manager at Honeywell Intelligrated, has

been in the distribution and fulfillment industry for eight years.

She has hands-on experience in labor, retail, e-commerce and

omnichannel fulfillment, and previously worked for a major

apparel retailer. She has performed various roles focusing on

industrial engineering, continuous improvement and software

product management, leading complex system integrations

in order to deliver value to customers.




TRENDS AND DRIVERS

3

Speed and Growth Labor Connectivity Urbanization

$

Smart Warehouse Software: A Solution to Every Situation



SPEED AND GROWTH

4

Source: U.S. Census Bureau; census.gov/retail/mrts/www/data/pdf/ec_current.pdf Source: DigitalCommerce360.com

$524 billion

2018

$602 billion

2019

Examples:

$



https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

https://www.digitalcommerce360.com/article/us-ecommerce-sales/


POLL QUESTION

5

1. How many of you have adopted some type of continuous or waveless model

for releasing work within your DC?

A. Still create waves manually utilizing a wave planner

B. Create waves but have automated the wave release

process to throttle based on the downstream workload

C. Operation is completely waveless (as small as a single

order release)

D. Waveless will not help my operation



TO WAVE OR NOT TO WAVE?

6


Traditional Waving Characteristics

Focuses on store replenishment

Relatively fixed demand

Waves processed in sequence

Drop in tail-end productivity

E-commerce challenging model

SPEED AND GROWTH

A B C1 2 3

$

Q




1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

WHICH ONE IS BETTER?

8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 191 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

P1

P2

P3

P1

P2

P3

$




SMART RELEASE: A RESPONSIVE FULFILLMENT MODEL WITH WES

• Prioritizes and releases orders

▪ Real-time inputs: ship times, labor and automation availability

• Machine learning

▪ Processing times, throughput, actual demand

9

“We’ve experienced an increase of 2 percent improvement in

throughput, which has provided $832k in additional revenue.”

— WES user

$



Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.@Intelligrated 10

2. What is your number one priority in your distribution and fulfillment operation?

A. Increasing order fulfillment speed

B. Increasing order fulfillment accuracy

C. Reducing labor costs

D. Addressing labor shortages

POLL QUESTION



ALL WEALTH IS THE PRODUCT OF LABOR

11


Cost per New Hire

$4,425 plus OT and

temporary staffing costs

LABOR

Inability to Attract and Retain

Qualified Hourly Workforce

55% of Respondents Cite as

a Major Industry Issue

Aging Workforce

Decreased Productivity

Decreased Stability

Turnover Rate in DCs20–40%

Competition for Labor:

In March 2020

Amazon announced plan to hire 175,000 new workers

Instacart announced plan to hire 300,000 new workers

$




20% overstaffing during peak times

13

Research shows that labor accounts for

60–70% of all distribution center costs.

LABOR




LABOR

MAXIMIZE YOUR LABOR SPEND




3. Within the DC there are thousands of data points that can be leveraged to

provide insights, which of the following services would you want the most in

regard to data?

A. Proactive and predictive insights into the order

fulfillment lifecycle so that I can take action

B. Labor staffing recommendations via consulting services

C. Real-time alerts and at a glance key performance

indicators (KPIs)

D. None, I already have all the data insights I need

POLL QUESTION



DATATHE 1ST CLASS PASSENGER

16


• Enables real-time data and

visibility to provide insight to

support strategic and tactical

decisions

• Facilitates integration between

systems to enable a more

seamless supply chain

• Enables performance

measurement

and monitoring

• Improves forecasting accuracy

• Increases efficiency

Roughly 55% of your warehouse labor burden

comes from picking. Collaborative robots will work alongside

a human workforce, rather than replacing them, to improve picking efficiency.

IoT

CONNECTIVITY


WES Automation

Capabilities

• Pick

• Put

• Route the product

Benefits

Increased

• Accuracy

• Reliability

• Insights

Decreased

• Costs

• Labor


https://www.material-handling.com/blogs/improve-picking-efficiency/


• Traditional standards for managing the

warehouse are obsolete

• Big data analytics in warehouse management

• Expand operations, improve risk management,

achieve shorter cycle times

• Meet increasing customer demands

through supply chain data.

Predictive and Prescriptive Analytics

CONNECTIVITY


Approximately 79 percent of companies that maintain high-performing

supply chains can reap above-average revenue growth by using analytics.


https://veridian.info/supply-chain-data/


CONNECTIVITY

Advanced machine-learning algorithms and data-driven optimization techniques

are orchestrating automation and empowering warehouse execution.

Machine Learning and Artificial Intelligence

• Increase in fulfillment complexities

• The number of automation systems,

workstations, processes, orders and

SKUs

• Possible permutations expand

exponentially

• From a human capabilities perspective,

become nearly impossible to manage

and decipher



AUTOMATION, ROBOTS AND CITY LIVING

20


URBANIZATION

Urban

68%

Other

32%

Location of Population in 2050


• In 2018, 55% of the population lived in urban areas.

▪ As overall population increases, we will see that number

continue to grow.

• How does it affect warehouse automation?

▪ Growth of e-commerce, tighter SLAs

▪ Labor scarcity

▪ Robots

▪ More products closer to more people and in less space

▪ Dark warehouses

▪ BOPIS



Industries Using Robotic Automation Due to Urbanization• Grocery

• Big-box retailers

• E-tailers (e.g., Amazon)

Where?• U.K. and the E.U.

• Australia

• China

• U.S.

• India

• And growing…

URBANIZATION

$




URBANIZATION




SUMMARY

24

Speed

and Growth

Labor

Connectivity

Urbanization

• Personnel shortage

• Aging workforces

• Resource productivity

• Same-/Next-day

shipping

• Demanding peak and

holiday seasons

• Flexibility

• Products close to the consumers

• Dense area coverage

• Smaller footprints

• Greater transparency

• Digital boom

• Data-driven insights

$



Honeywell Confidential - ©2020 by Honeywell International Inc. All rights reserved.

Conveyor &

Sortation

Systems

Fulfillment

TechnologiesLifecycle

Services

Operations &

Solutions

Development

Palletizing &

DepalletizingRobotic

Solutions

Software

Solutions

The Connected

Distribution

Center

@Intelligrated

QUESTIONS?

25



PREPARED QUESTIONS

26

1. How much of my budget should I be allocating for automation?

2. What automation functions are seeing the most adoption? In other words, are more

people buying labor programs versus robots, etc.?

3. What’s the difference between a typical WMS versus a warehouse execution system?

4. As far as costs, is there a significant difference in buying a full WES versus an

à la carte approach? Or is that even possible?

WES, please reword from

customer perspective.

Honeywell Intelligrated On the Move



POLL QUESTION

27

1. How much of your distribution and fulfillment center is powered by automation?

A. 0%

B. 1–24%

C. 25–49%

D. 50–74%

E. 75–100%




3. What automation is your business most likely to adopt?

A. Autonomous Mobile Robots

B. Automated shuttle/retrieval systems (AS/RS)

C. Goods-to-operator workstation

D. Not familiar with automation

POLL QUESTION



SMART WAREHOUSE SOFTWARE: A SOLUTION TO EVERY … · fulfillment solutions for the entire Honeywell...

Documents

Transcript of SMART WAREHOUSE SOFTWARE: A SOLUTION TO EVERY … · fulfillment solutions for the entire Honeywell...