Warehouse Management
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Table of Contents
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Warehouse Management
TECSYS Warehouse
Solutions Overview
Advanced Warehouse
Key Advantages
Challenges
Management Software
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Business Intelligence
TECSYS SMART
Expert Connections
Your Supply Chain Matters
About TECSYS
Management Functions
Š 2011 TECSYS Inc. All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners. page 2
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Warehouse Management Challenges
TECSYS Warehouse Management Software (WMS)
Your Warehouse, Your Most Valuable Distribution Asset
Turning your biggest asset into your most powerful competitive weapon
Today’s warehouse operations are vital to deliver on the promises made to customers and achieve a high-level of customer satisfaction. Through the effective use of best practice processes and technology, today’s world-class warehouse operations are able to eliminate inefficiencies, improve order accuracy and inventory management, reduce operational costs and achieve a high-level of customer service. You may be dealing with the same challenges logistics management face every day, such as:
For over 15 years, TECSYS has been providing best practice warehouse management solutions to highvolume distribution customers across the globe. The Company’s WMS product has been recognized by a leading industry analysts firm as one of the top WMS and visionary products on the market. With its strong WMS product capabilities, domain expertise and market share in healthcare, the analysts firm has also recognized TECSYS as the dominant vendor in the Hospital Supply Network (IDN) market in one of its recent reports.
1. Increasing demands: constant changes in market conditions, increasing pressure by customers, radical demands. 2. Need to do a lot more with less: demand is high, inventory fluctuation, budget cuts, less staff. 3. Respond as an agile and flexible distribution organization: need to be able to respond quickly and effectively to customer demands as well as constant changes in market conditions. 4. Move orders in and out of your warehouse with the highest efficiency and productivity: respond every day quickly and efficiently to demands made by customers at the lowest possible operating cost. 5. Move away from unproductive technology and cumbersome processes: shed paper-based methodology, old and/ or inefficient processes and technology to facilitate best practice methodology and reach the highest KPI’s for your distribution centers.
“We looked at the top three enterprise suppliers and could not find a good enough WMS. The TECSYS system is a proven product for healthcare. It is a very good fit for our needs and works hand in-hand with our materials management and clinical systems. It is easy-to-use and it is helping us maximize the efficiency and cost savings in delivering quality service for patient care.” Mike Switzer Vice President of Supply Chain North Mississippi Health Services
Bottom line, you need to:
efficiency Substantially reduce operational costs Improve to the highest level service to your customers Significantly improve warehouse
With your warehouse representing your most valuable asset─financially and customer service-wise─it is undoubtedly one of the highest priorities in your supply chain to address with an objective to win in this highly competitive distribution world.
“Without TECSYS’ WMS, we would have not been able to handle the load. We would have had to add people. The idea is, with TECSYS’ WMS we do more with less. At one point we had 47 people, today we are handling the load with 28, even after increasing the number of products in our inventory by almost 20%.” Rick Hoose General Parts Manager Cleveland Brothers
This strong position, backed by the deep expertise of TECSYS’ consultants and R&D staff, is the foundation of the Company’s solutions delivered to some of the world’s most renowned organizations such as Adidas, Canon, Cardinal Health, DB Schenker, Intermountain Healthcare, E1 Entertainment, McKesson, Milton CAT, Mitsubishi, Pool Corp and telent Limited, among many others who have turned their most valuable distribution asset─their warehouse─into their most powerful competitive weapon. TECSYS’ WMS major capabilities include: ▪▪ Advanced WMS functions for receiving, putaway, inventory moves, picking, packing, replenishment, shipping, loading and cycle counting. ▪▪ System-directed RF task management and task interleaving. ▪▪ Multiple pick methods including wave, zone, batch, cluster and user-defined.
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▪▪ Volumetrics and automatic shipping carton selection. ▪▪ Embedded advanced Transportation Management functionality including parcel carrier / LTL / FT management, rate shopping and freight auditing. ▪▪ Dock and cross-dock management. ▪▪ Value-added services enabling trading partner compliance on special production, kitting operations and custom labeling. ▪▪ Advanced inventory tracking: serial number, lot control and expiration date. ▪▪ Extended functionality for expanded supply chain execution: multi-warehouse, multi-regions, multilanguage, multi-currency capabilities. ▪▪ Business intelligence including labor productivity, item velocity reporting and more. ▪▪ Seamless integration to several complementary applications and host systems.
TECSYS’ WMS is an industrial-strength, robust and feature-rich solution that includes all the capabilities typically found in other leading best-of-breed WMS applications, its key advantages are: Visual Logistics, Real Scalability, Accessibility from anywhere at any time and Extended Supply Chain Execution Capabilities beyond the warehouse.
TECSYS WMS Overview
Operational Planning, Performance Management, Inbound
Receiving
Quality Control
Putaway
Replenishment
Traceability, Reporting, Business Intelligence Picking
Packing/Shipping/Labeling
Outbound
Transportation
Delivery Management
Advantages & Benefits Reduced Order Turnaround Time
Flawless High-Volume Order Fulfillment
Reduced Labor and Steps for Picking/Shipping
Real-time Control of Complex DCs
Accurate and Timely Receipts
▪▪ Cut normal orders from 2-3 days to “in by 4:00, out same day”. ▪▪ Shorten rush orders from hours to minutes. ▪▪ Reduce cycle time for large orders using coordinated team picking.
▪▪ Process from one to thousands of line items per order at the same time. ▪▪ Mix “each”, “inner”, “case”, and “pallet” quantities on the same order. ▪▪ Process 100,000+ lines per week. ▪▪ Process 10,000+ orders per week. ▪▪ Ship using multiple carriers - with parcel, LTL, full truck, and private fleet. ▪▪ Handle Big Box, Mom & Pop, and DC transfers.
▪▪ Automatically determine final container before picking. ▪▪ Pick multiple orders simultaneously into final shipping cartons. ▪▪ Eliminate packing/checking steps and their inherent bottlenecks. ▪▪ Eliminate manual sorting/resorting of paper pick lists. ▪▪ Increase speed and accuracy through visual RF instructions.
▪▪ Control 100,000+ SKUs, plus non-stocks and special orders. ▪▪ Support wide product variances: weights, cubes, dimensions. ▪▪ Simultaneously process multiple units of measure using graphical images: “each”, “pack”, “case”, “pallet”. ▪▪ Satisfy critical tracing/compliance requirements: FDA, lot/expiration, serial, recall, etc.
▪▪ Process many parcel/LTL deliveries/import containers. ▪▪ Handle a wide variety of receipts: 10 to 500 lines, “eaches” to “pallets”. ▪▪ Reduce availability for sale/picking from days to minutes. ▪▪ Simultaneously receive multiple small POs without presorting.
Global Internal and External Visibility ▪▪ Experience cross-application information accessibility and sharing versus data integration. ▪▪ Enhance operations through the use of graphics/electronic documents. ▪▪ Collaborate with suppliers/ customers via self-service Web access.
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Scale with Business Growth ▪▪ Easily scale from two users to 200+ users, from 10,000 sq.ft. to 1,000,000 sq.ft., from 100 to 100,000+ SKUs. ▪▪ Benefit from easy-to-learn solutions for your warehouse and office staff. ▪▪ Partner with highly experienced distribution experts who will guide you today and tomorrow. page 7
TECSYS Inc.
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TECSYS WMS Advanced Warehouse Management Functions
Multiple Pick Methods Create your own ‘best practice’ to optimize operations. Use the technology that fits – paper picklists, label-directed, RF or voice. Select your own preferred picking flavors – order, wave, zone, cluster, batch or your own personal user-defined method.
Volumetrics and Containerization Maximize storage space utilization and eliminate repacking operations through advanced volumetrics and pre-determination of the right size and quantity of shipping containers.
Slotting
Labor Management
Kitting / Postponement
QC / Inspection
Reduce travel and cycle times with directed
Improve operator performance through creation
Satisfy changing customer demands with
Comply with internal, customer and regulatory
slotting. Determine optimum product placement
of labor standards, pro-active management of
kit-to-stock, kit-to-order or other complex
requirements through automatic quarantine and
and direct inventory movements based on pick
staff assignments based on real-time workloads,
postponement strategies leveraging highly visual
inspections. Visually direct inspection processes
frequencies, volumes, facility layout and other
and analyze actual versus standard results to
instructions to ensure quality and accuracy.
with high-quality graphics, text and instructional
product characteristics.
target areas for improvement.
videos.
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TECSYS WMS Advanced Warehouse Management Functions
Packing / Labeling / Shipping
Distributed Order Management
Deliver customer-specific labeling and packaging automatically as part of
Streamline the customer service experience – enter a single
normal packing and labeling steps. Eliminate the packing station completely
customer order and automatically distribute order lines to the
by moving the customer-specific and/or carrier-compliant labeling process in
shipping source. A single customer order may include shipments
Expiry Date, Lot Tracking, Serial Number Tracking
line with order picking operations. Remove multiple parcel carrier workstations
from one or more internal DC’s, 3PL’s, drop shipments from
Satisfy track-and-trace requirements of Lot ID’s and serial
with automated carrier selection based on rates, service levels and customer
suppliers, special orders and even varying delivery dates and
numbers. Control stock rotation with sophisticated algorithms
routing guides without the need for manual intervention and multiple carrier
methods.
that balance labor efficiency and storage space utilization with
workstations.
date rotation requirements.
Advanced Inventory Tracking & Visibility Provide real-time information to anyone in the supply chain – anywhere, any time on any device. Automatically control information access based on ‘need to know’ to ensure confidential information remains confidential across the supply chain. Allow collaboration and self-service across the supply chain for status, tracking and tracing needs.
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Voice
TECSYS WMS – Key Advantages
At TECSYS, we recognize that optimizing processes in the supply chain has many new variables. Better and faster processes are now combined with different sizes and shapes of inventory items, requiring the flexibility of total hands-free for certain distribution operations, as well a workforce for whom English may not be the primary spoken language. With TECSYS’ WMS, distribution operations have the voice choice to circumvent these challenges, and with the use of standard mobile devices from different manufacturers with special speech recognition software, it makes voice and traditional RF operations interchangeable on the same device.
Visual Logistics™ Patent-Pending Breakthrough Technology for Optimum Warehouse Management TECSYS’ Visual Logistics represents a paradigm shift in warehouse management, delivering visual cues and images to workers directly on their RF unit or handheld computers; instantly communicating the exact activities they can perform in the optimum time, eliminating the wasteful and time-consuming process of reading textual information, searching for product or pick slot. Visual Logistics enables customers to achieve significant increases in operational efficiency, unequivocal accuracy in order processing and quality validation, and as a result be able to remove thousands of dollars in cost from their supply chain operations. Visual Logistics is not just a new order picking technology; rather it is a solution that provides substantial benefits across all day-to-day warehouse operations from receiving through to shipping.
Visual Voice By combining Visual Logistics™ with voice technology, operators become even more efficient than with just voice alone. This is an industry first technological breakthrough that will revolutionize voice in the same way Visual Logistics is revolutionizing traditional RF operations in warehouses across the globe. Graphical content provides operator aides for quick reference only or true multi-modal processes. The combination helps to eliminate common voice-only challenges in situations such as confusing units of measure descriptors or cluster picking into a multi-tote cart.
A reduction of a few seconds per work transaction can translate into hundreds of thousands of dollars of labor efficiency savings for many distribution operations. Scale at the Speed of Business
Elapsed time (seconds) to pick 1 order line
Traditional Text-Based RF
Visual Warehouse (5 Seconds/Line Savings)
Visual Warehouse (30 Seconds/Line Savings)
72
67
42
Split Case Pick Rate in shelving/flow rack zones in order lines/hour
50
54
86
Daily man-hours required to select 20,000 order lines
400
370
233
Annual labor cost for order picking if operators are paid $13.00/hour fully loaded
$1,352,000
$1,250,600
$787,500
Annual labor savings from Visual Logistics
-
$101,400
$564,500
Real Scalability
Tier 1 WMS
TECSYS’ WMS is flexible, adaptable and highly scalable to the size, need and complexity of business. It allows distribution organizations to deploy the system across a variety of operations─from paper-based to the most sophisticated automated distribution operations with material handling equipment─while meeting organization’s growing needs. Both large and small sites can be economically implemented with the same application without a need to implement multiple solutions. This results in a single standardized solution across the organization while allowing individual sites to fine-tune their own processes based on facility and business conditions.
Cost / Implementation Complexity
Assumption
Tier 2 WMS
500k+ ft2 75k+ ft2
Tier 3 WMS
5k+ ft2
25k+ ft2 abi Scal WMS ’ S Y S C TE
li t y
Operational Complexity
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TECSYS WMS – Key Advantages
End-To-End Solutions
Accessible anytime anywhere TECSYS WMS can be accessed from any browser-based device, from anywhere at any time. The system is intelligent, extensible and as easy to use as a browser. It is adaptable to users’ environment, and is sensitive to each individual’s personal needs. As workers use the system more and more, its intelligent technology quickly
Management
tailors itself to each individual preferences and way of working, and presents that information exactly how they like to see it.
Sales
TECSYS WMS Technology
Suppliers
Internet-based with SOA architecture, TECSYS’ open system software applications can be deployed on premise, be hosted applications or be deployed as a SaaS (Software-as-a-Service) model. TECSYS’ software can easily and securely be interfaced to other complementary software applications as well as materials handling equipment.
Partners
With TECSYS:
Distribution Center
▪▪ Executives are able to determine where the risks are and where the opportunities lie.
Demand Planning
▪▪ Customers may be able to access views to track their own orders, as well as check on inventory levels and history. ▪▪ Vendors are able to see how their inventory is moving within the warehouse. ▪▪ Sales representatives are equipped with real-time information and always able to answer questions on product, stock and backorders. ▪▪ Customer service reps are able to deal with critical shipments, from tracking to status of orders.
Customers
Customer Service Warehouse Operations
Office
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TECSYS WMS – Business Intelligence
Intelligent Visibility of Your Supply Chain Fundamental to managing your distribution operation is the ability to have clear visibility across your supply chain and to have access to actionable information in order to stay ahead of the competition.
TECSYS Supply Chain Modeling And Reference Tools – SMART ™
Leveraging Expert Know-How for Best-in-Class Supply Chain Performance TECSYS has built its business through a single-minded focus on
On any given day, you are faced with tactical decisions, such as dealing with the level of certain
These blue prints are a set of Supply Chain Modeling And
warehousing and distribution operations and by developing robust
product inventory, ensuring that a major order is out of the door or handling certain inefficiencies in
Reference Tools built over more than two decades of designing
products and leading expertise over more than two decades. The
the warehouse. On the other hand, you may be faced with strategic decisions such as dropping an
and deploying solutions for world-class organization’s supply
Company employs a seasoned team of experts who have extensive
underperforming product line and/or refocusing capital resources into other areas of your business
chains we call SMART™.
experience in supply chain management and in deploying TECSYS’
where they can be more productive. These types of decisions require timely, accessible, and trustworthy
technology in high-volume distribution environments, enabling
information to not only manage your business, but to drive your business forward.
customers to significantly streamline logistics operations, reduce
TECSYS’ Business Intelligence (BI) solutions enable you to gain clear and immediate insight into your
cost and improve customer satisfaction.
organizational data assets in order to make informed decisions. Through TECSYS’ pre-packaged BI solutions
TECSYS’ professionals have been designing and deploying supply
and services, you have the necessary tools and knowledge to manage your organizational performance.
retail distributors, general high-volume distributors and third-party
chain execution solutions for more than twenty-five years in the
logistics providers. TECSYS SMART enables decision makers to reap
TECSYS’ BI offers a suite of intuitive tools that are easy to implement, use and manage, as well as pre-built
healthcare, high-volume distribution and third-party logistics
the benefits brought about by TECSYS’ experienced professionals
models and content such as reports, analyses, dashboards, multi-dimensional data-marts and metadata
industries. As a result of our deep experience and best practice
by applying the blue prints of expert know-how in their particular
models to allow your end users to immediately realize your objectives.
know-how in the vertical markets we serve, we have packaged
industry.
Managing information, making it accessible, and empowering your user community with easy-to-use tools is essential to unlocking the value of your data assets and, in turn, improving your workforce’s productivity and efficiency through better and faster decisions.
a comprehensive set of pre-engineered business processes and supply chain management tools to enable your business to follow proven blue prints to achieve best-in-class supply chain performance.
TECSYS SMART is a suite of best practice supply chain “roadmaps” encompassing all the processes that are used in each market we serve: healthcare, high-volume distribution for automotive spare parts, heavy equipment dealers, industrial distributors, import-to-
With TECSYS SMART you are confident of the best-practice roadmaps that enable you to reach best-in-class performance and out-execute your competition.
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Expert Connections
With TECSYS, Your Supply Chain Matters!
TECSYS - Providing Customers with Advantages that Matter
Why Customers Choose TECSYS: TECSYS’ support professionals are the front line of TECSYS’ expertise to support you in meeting your operational needs.
TECSYS’ wide range of support services include:
Professional Experts, People-Oriented
Our team is well-versed in the details of TECSYS’ solution, ready to assist you with any questions and, when needed, to troubleshoot any issues that may arise. This team of full-time technical and application specialists is expert in TECSYS’ software, well educated in your specific industry and combines that knowledge with the specifics intricacies of your application.
▪▪ Telephone & email support ▪▪ Web: knowledge-base, support status
▪▪ More than 75% of TECSYS’ staff has 10–25 years experience in supply chain management; warehouse, distribution & transportation management, best-in-class business processes and technology.
TECSYS offers a wide range of support programs and delivers industryleading support, technical expertise, and innovative self-service tools, 24 hours a day, seven days a week. Whether you are going live on an application, upgrading your TECSYS software, or experiencing a technical issue, our application specialists are on call to ensure that we provide you with that unrivaled support to meet your specific support needs.
▪▪ Remote diagnostics and remedies ▪▪ Onsite support when needed
▪▪ Deep and unique expertise in each vertical market; healthcare, high-volume distribution and thirdparty logistics.
▪▪ Maintenance releases
Robust & Flexible - Applications & Technology
▪▪ System administration training
▪▪ TECSYS’ technology is robust, powered by state-of-the-art Java® technology and TECSYS’ proprietary iTopia® framework.
▪▪ DBA services We provide you with the knowledge and assistance you need, at all times, to make sure your TECSYS solutions deliver on its exceptional promise to enable best-in-class performance of your supply chain.
▪▪ Flexible, integrated and intuitive technology, easier to use and deploy – provides strong competitive advantage and high ROI to customers. ▪▪ TECSYS supply chain applications respond effectively to customers’ business needs – moving goods efficiently, reducing logistics costs, improving fill rate, tracking products and orders, and providing unprecedented visibility into customers’ supply chains.
TECSYS’ technology is an enabling platform for solving its customers’ warehousing and distribution challenges. Its rich expertise and distribution management capabilities for vertical markets provide key advantages to its customers such as: ▪▪ Improved fill rate up to 99.98% ▪▪ Reduced operational costs ▪▪ Increased order accuracy to over 99% ▪▪ Improved labor productivity; handle more with less ▪▪ Improved responsiveness to customers ▪▪ Increased customer satisfaction
Focus on Supply Chain Execution ▪▪ TECSYS is focused on supply chain execution with its people, solutions and technology – specific solutions to specific clients’ needs in each vertical segment we serve.
Agility & Responsiveness to Customers TECSYS’ infrastructure is nimble and flexible, enabling the Company to: ▪▪ Move quickly and efficiently. ▪▪ Respond quickly to its customers’ needs.
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About TECSYS TECSYS is a market-leading provider of warehouse management, transportation management and distribution management software and industry-expert services to mid-size and Fortune 1000 corporations in healthcare, third-party logistics and general high-volume distribution industries. The Company employs a seasoned team of experts who have extensive experience in supply chain management and in deploying TECSYS’ technology in high-volume distribution environments, enabling customers to significantly streamline logistics operations, reduce cost and improve customer satisfaction.
TECSYS improves customers’ supply chains with unparalleled industry solutions based on its advanced, proven technologies and feature-rich suites of enterprise supply chain 1 Place Alexis Nihon Suite 800 Montreal, Quebec Canada H3Z 3B8 Toll free: (800) 922-8649 Tel.: (514) 866-0001 Fax: (514) 866-1805
management applications. By leveraging the full power of its solutions to improve the efficiency and profitability of their businesses, TECSYS’ clients continue to soar as leaders in their respective fields.