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TRANSCRIPT
MOUS 11.8.17
Jamie Silverman
Business Development Manager Inyxa
A Journey to Warehouse Automation
With an increased focus on Supply Chain Management, including speed to deliver, order efficiency, and customer satisfaction, organizations are contemplating increased investment in warehouse automation now more than ever.
In this session, we will walk you through the Automation journey at a few of our E-Business Suite customers, where significant productivity gains were achieved through intelligent integration with warehouse automation technologies.
Attendees will walk away with a better sense of some of the challenges involved, and get to see first-hand some of the tools & techniques used to overcome these challenges.
Synopsis
• About Inyxa
• Supply Chain Trends
• Case Studies
• Conclusions
AGENDA
About iNYXA
• Chicago-based Supply Chain Solutions firm • Oracle partner since 2008
• Member of the Oracle Supply Chain Advisory Board
• Global Delivery Capability using two Development Centers in India, and an experienced Onsite team.
• A decade of complex implementations, pre-built solutions & enhancement extensions for EBS
• Industry Expertise: Industrial manufacturing, Distribution, Retail, Fresh Produce, Semiconductor, Medical Devices, Pharma, Hi-Tech
About iNYXA
Project Approach
• Our Philosophy
– Transactions must fit Physical Work / Material Movement
– End-to-End Solution
– Don’t let the software/system get in your way
– Man to Machine Relationship
• Business Justifications
– Fewer scans – faster information capture
– Capture of additional or different information
– Integration with other systems
– Better fit for industry specific processes
– Integration with Automated equipment
Agenda
• About Inyxa
• Supply Chain Trends
• Case Studies
• Conclusions
Market Direction – 2017 Supply Chain Management
“Top-tier organizations have recognized that SCM can be the single greatest unifying factor across all (business) functions. It increases revenue, extends asset life, protects brand and reputation, increases productivity, reduces costs, and manages risks.” “Supply
Chain Management: Getting a Seat at the Table” by Stephen C. Rogers and Robert Porter Lynch, 2015
“Many supply chains are simply not set up to respond to broader organizational objectives that often call for speed and convenience in a cost-effective manner.”
“The Amazon Effect”
2017 Automation Study – Landscape
2017 Peerless Research Group Study- 221 Respondents
- Operations in food & beverage, automotive, chemicals, pharma, and industrial machinery
- $872 Million Average Annual Revenue
Agenda
• About Inyxa
• Supply Chain Trends
• Case Studies
• Conclusions
Case Study
A South American Manufacturer and Distributor of Fresh and Frozen Consumer Foods – A Journey to Automation
Automation at a CPG Customer
• Nationally, the #2 producer of fresh and frozen foods in Chilean market
• In business for over 100 years
• 4 Production Plants, 13 distribution centers
• 500 unique items
• 10,000 Sales Orders & 300 Truck Loads per day
• 40,000 unique customers with direct delivery
• Delivery is primarily LTL & TL in nature. 90% mixed pallets.
• E-Business Suite 12.1.3.
Two Phase Solution
• Phase 1 – 2015 Productivity Improvements– Variable weight picking – not in the out-of-the-box WMS solution
– Enhanced rules for bulk picking
– Improvements in shipping efficiencies – truck loading
– All through mobile form extensions – no change to underlying Oracle code base
• Phase 2 Highlights– 2016 New Automated Distribution Center– Integrate picking process with Material Handling System
– Pallet building logic to simplify packing process
Phase 1: Software Enhancements
Phase 2: Distribution Center Material Movement
Inb
ou
nd
Pal
lets
Forklift Put-away
ASRS Putaway
Case Picking
Full Pallet Picking
ASRS Picking
Packing
Packing
PackingShipping
3. Pick & Pass picking for
Variable Wt. Items
2. Bulk Picking for Standard Wt.
Items
4. Sorter diverts product to Packing Lanes
6. Packing Solution for Pallet
Building
5. Automated Storage
Retrieval (ASRS) Picking for
Frozen Product
7. Truck Load & Ship Confirm
1. Inbound Dock. Full Pallet Replenishment
Distribution Center Material Movement
Integration with Pallet ASRS
• Put-away integration with Pallet ASRS.
• Picking integration, to request pallet from Pallet ASRS.
• In high volume ASRS, order of dispensing may be different from order of request. Picking form that processes warehouse picking task based on pallet that was dispensed by ASRS.
• Pallet Storage / Retrieval
Outbound Wave Release Workbench
• In a single application, allows for:– Users to easily manage pick, pack,
ship
– Visibility into wave, items, staging lanes, and dock doors
– Ability to manage use of available lanes to optimize picks.
– Increased flexibility to external factors
– End to End tracking of material. From release in Oracle, through packing, truck loading & shipping.
Outbound WavesASRS / Sortation Release
Selecting material in WaveStatus of cases dispensedOr sorted
Dock Door Status
Integration with Conveyors & Sortation
Orders may arrive from ASRS & Sortation out of sequence.
Packer takes cases from end of ASRS Line and associates them with a pallet.
Quickly create the pallet entity, based on the pallet number and associate every case by scanning the label.
Multiple mobile scanners and guns tested and used; personal preference
Metrics
New Distribution Center with WMS/Conveyor: – 24 tons per hour
• (vs. 18 tons in old DC)• 33% efficiency increase
– 2 Work shifts with 34 pickers by shift. 68 pickers in total• (vs. 2 ½ shifts with 85 pickers)• Reduced Labor Costs by 20%
Oracle Success Story- Featured at Oracle Open World 2016- Currently showcased as a Case Study on Oracle’s web site
Case Study – Automation in Retail
• High volume catalog & internet retailer
• 5 million packages a year and growing fast
• Next Day Delivery Demands
• Significant investment in automated conveyers
• A legacy WMS that was custom built and fit like a glove
• Over 1 Million SKU’s
Case Study: Automation in Retail
• We did not start the discussion with what the Oracle WMS system can do, instead we started with what the ideal process for the customer should be.
• Warehouse on legacy system was fairly efficient since sorting / conveyer equipment purchased over the years was optimized with legacy system.
• Goal was to build on the strengths of the legacy system while addressing known limitations.
• Even though several extensions were built, with over 30,000 lines of code written, no customizations were done to Oracle code, making the overall solution upgradeable & patchable.
A dozen Mobile User Interfaces to enable efficient integration with conveyer, sorting equipment & retail centric processes.
ADF – Web based portal that handles the very high reverse logistics volume.
Integration with Parcel Manifesting, Dropship & other marketing systems. Parcel
ManifestingDrop Ship
Aggregator
EBS WMS Process Improvements
EBS WMS – Not a Match
Not one of these transactions below in 12.1.3, even with personalization/configuration or minor code changes
• Receiving - Putaway
• Pick Release / Wave Creation
• Picking, Packing & Shipping
EBS WMS – still the best Match
• Other systems like Red Prairie, Manhattan would all also require customization.
• EBS provided the most open & integrated platform with availability of a large number of Public APIs for every task.
• EBS was already chosen as the primary Financial, Order to Cash & Procure to Pay system.
Examples –Receiving
Out of the Box vs. Custom Screen
Cross dock indicator for full PO If more than x% of items on PO need to be cross docked
Ability to see last 3 items scanned. REDO / UNDO capability if receiver loses their place
Continuous loop to scan items. Scanning *DONE* or entering a Key combination exits loop.
1
2 3
1. High Speed Zone Picking
2. Single item to delivery, placed directly on conveyer
3. Multiple items per delivery, gets a routing label then placed on conveyor.
Picking & Consolidating Parcels
Labeling, Packaging & Parcel Manifesting
• Rate Shopping with:
–Print & Apply & Box Closing
–Print & Apply with Automated Packaging Equipment
Labeling Vendors Rate shopping Manifesting vendors
Results
• Shipped nearly 40K units within 24 hours of Go-Live
• 6 months later:
– Completed busiest shopping season in company history
– Shipped over 2 million packages
– Increased efficiency of general merchandise picking
– Cut down on shipping costs
– Set up for future growth with fully integrated system
“This is probably the smoothest transition of a major IT system that I have ever seen.”
President/CEO of Retailer
Case Study: Automation in Farm Produce
• A large packer of organic fruit in the Northwest.
• Packing, Processing, Storage & Shipping of Farm Produce at a massive scale.
• Ships over a hundred truck loads a day all over the US.
• Project involved Integration of ERP order fulfillment processes with a Large Automated Pallet Storage and Retrieval System.
Key Project Highlights
• Unified Portal for tracking shipments through ERP Order Fulfillment, Transportation Planning & Warehouse Control Systems.
• Real-Time REST based integration with Material Handing Systems.
• Mobile & Forklift Mounted user interface for Receiving, Picking, Shipping, Pallet Consolidations etc.
Wave PlanningTruck Appointments. Yard
Check-in / Check OutLabor Management Dock Door / Yard
Integrated Operations Dashboard
Results
– Immediate & significant improvement in existing processes through rapid roll-out of mobile screens optimized for customer transactions.
– Better control & more reactive operations through tools for unified operational control.
– Real-Time visibility for executives into shipment status, truck wait times & labor productivity.
– Collaborative Implementation approach with customer business & IT team for easier change management.
Extended forms work Seamlessly across clients
Client is Windows 10 Tablet
Client is Forklift Mounted Legacy Device
Hand held device
iOS / Android Clients
Labe
ling
Device
Man
agemen
tD
evices
3rd Party Partners
A Range of Solutions for Oracle WMS Faster & More Accurate
Functional
Area
Business Problem Implementation
Type
Shipping Sorter assisted picking Mobile MSCA / WMS
Shipping System Directed Pallet Building & Inner box
selection.
Mobile + EBS Extension
Shipping System Directed Packing, Pack Verification &
Labeling integration
Mobile MSCA / WMS
Receiving Visibility into trucks in Yard & tracking of
truck unload / load times.
ADF Workbench
Receiving High volume small parts receiving Mobile MSCA / WMS
Receiving Remote Supplier Labeling Standalone Application
Returns High Volume Returns Processing ADF Workbench
Purchasing Purchasing for Style Color SKU ADF Workbench
Inventory
Control
Retail Cycle Count & rapid inventory pack /
move
Mobile MSCA / WMS
Manufacturing Production Data Capture for Oracle Quality Standalone Application
Business
Intelligence
Real Time Signage Standalone Application
Warehouse Automation
• Integration of Sortation Equipment with Wave & Pick Process
• Mobile Extensions for efficient pick / pack & ship with sorter and/or conveyer infrastructure.
• Integration expertise with ASRS, Carousel, Scale and other Warehouse Control equipment.
• Enhanced Bulk Picking solutions for full pallet picks across orders.
• Worked with various systems & hardware partners
“Pick to Sorter” & “Pack from Sorter” forms
Sortation Control between WMS & Intelligrated
• About Inyxa
• Supply Chain Trends
• Case Studies
• Conclusions
AGENDA
Conclusions
• When looking to add automation to your SCM strategy, architecting a comprehensive end-to-end Supply Chain Solution is critical.
• It is important to prevent Oracle WMS from getting in the way of Automation equipment.
• With software automation, a screen that does not fit on day one, will not fit on go-live.
• Intelligent integrations with external systems are key to a successful project• If you already have EBS, integrating external automation into EBS, can
produce a system that has the same or better efficiencies, is more cost effective, and is more integrated to your business when compared to anything on the market
