Transportation and Warehouse Planning Systems

Byron FloresBus M. 462

April 12, 2010

Presentation Overview

• Transportation and Warehouse planning systems defined

• Why they should be important for a business• Key elements of TMS & WMS• Real life example• Exercise• Summary

Transportation management systems (TMS), plans, executes, and manages transport and movement functions

Parties involved include: Shipper, Carrier, and Consignee (recipient)

Warehouse management systems (WMS), incorporate processes to guide physical activities, including product receipt, material movement and storage, and order selection

Transportation and Warehousing

Systems

Transportation and Warehousing

Systems

Why is TMS and WMS important to Businesses?

• Helps optimize systems and approaches.

• Eliminates waste of resources and non-value added steps.

• Improves customer satisfaction

• Reduces unnecessary inventory

• Reduces overall cost.

Functions of TMS• Carrier Selection

• Carrier Scheduling

• Dispatching

• Document preparation/ Freight payment

• Performance Measurement

• Shipment consolidation and routing shipment rating

• Shipment scheduling

• Shipment tracing and expediting vehicle loading

Advanced TMS Applications

• Advanced TMS applications incorporate increased planning and performance measurement capability.

Key Elements of TMS

• Equipment scheduling

• Yard management

• Routing and advanced shipment notification

• Carrier Administration

Equipment and Yard Management

• Scheduling is a key component

• Yard management requires careful load planning, equipment utilization, and driver scheduling

• Arrangement of delivery and pickup

• Pre schedule dock positions or slots

Load Planning

• Determine capacity of load

• What is the size of individual shipments?

• Delivery sequences

• Almost all large companies use TMS software to help in load planning

Routing and Advanced Shipment Notification

• Routing software

• ASN provided to customers

• Delivery specifications for customers

Carrier Administration

• Administer the performance of for-hire and private transportation

• Implement core carrier strategy

• Determine to use integrated service providers (ISPs)

• Identify most economical mode

Calculating the best route

Functions of WMS• Assign and track storage locations

• Inventory cycle counting

• Labor scheduling

• Equipment scheduling

• Lot control

• Order selection, location, and replenishment

• Receiving

• Put away

• Storage

• Performance measurement

WMS and order selection

• One of the main uses of WMS is order selection.

Types of selection:

Discrete selection

Wave selection (batch)

Wave Selection

• Can be designed in a number of ways

• Assigned responsibility for a specific portion of the warehouse

• Fewer selection errors

Core functions of WMS

• Receiving • Put-away• Cycle-count• Pick• Task Management• Quality Analysis • Replenishment

• Pack • Opportunistic cross

dock• Inventory Control• Work order

management • Ship

WMS work procedures

• Set procedures for workers when receiving and shipping

• Accuracy when case counting

• Enhance space utilization

• Replenishment of inventory

• Improved communication

Successful WMS plans

• Offer broader range of services

• Fast inventory turnover

• Workers must be cross functional

• Minimize time and movement

• Value added services

• Cycle counting

• Optimize design of warehouse

WMS tools

• Auto ID data capture• Barcode scanners• Mobile computers• Wireless lans• RFID

Implementing TMS & WMS

• Its important that your company implements the functions that will be important to the firm

• Hiring consultants

• Implementing 3pl and other logistical services

• Hiring expert in the field to implement a plan

Example of Terry’s Tire Town

Before implementation of WMS

• 188,000 sq fit distribution center

• Tires were put away by brand with no location tracking system

• Employees pulled orders by memory

• Productivity was bad

After implementation

Used RT locator warehouse management systems

• Barcode scanning and pallet racking systems. Helped save money

• Reduced the need of building bigger facility

• Stored more tires in less space

Exercise

• Have focus groups or round table discussions to see if your firm should implement WMS and TMS.

• If there is a need- determine where and how your firm can implement these planning systems to be the most effective.

Summary

• WMS helps inventory accuracy, visibility stock availability, and manage quality control functions

• TMS helps optimize load planning and shipping routes, and carry out vendor and carrier compliance

Bibliography • Tire Distributor Slashes Putaway Time with WMS.Full

Text AvailableBy: Albright, Brian. Frontline Solutions, Jul/Aug2005, Vol. 6 Issue 6, p38-40, 3p; (AN 17907517)

• Bowersox, Closs, Cooper.”Supply chain logistics management.” 2nd edition

 

• A WMS-TMS solution bridges information gap.

Frontline Solutions, Nov2001, Vol. 2 Issue 12, p26-29, 4p; (AN 5514843)