Driving Operational Efficiencies and Increasing ... Kaw… · Management delivery sales Portal...
Transcript of Driving Operational Efficiencies and Increasing ... Kaw… · Management delivery sales Portal...
Inforum 2017 Template
Driving Operational Efficiencies and
Increasing Profitability of your Supply Chain
Ashish Kawale, Principal Business Consultant
Infor – India, ME and Africa
Inforum 2017 Template
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
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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
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Supply Chain Design: Product Flow Design
Customer Suppliers
Regional
DC
Local
DC
Bulk
DC
Customer
Customer
Customer
Fresh/ Frozen
Foods General
Merchandise Furniture
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Top Pressures and Challenges faced by Best-in-Class Companies
Source – Aberdeen Report on Warehouse Productivity Benchmark
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Top Pressures and Challenges faced by Best-in-Class Companies
Source – Aberdeen Report on Warehouse Productivity Benchmark
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Actions planned to improve warehouse operations
Source – Aberdeen Report on Warehouse Productivity Benchmark
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Best-in-class companies out-perform Average and Laggards
Source: Aberdeen
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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.
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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
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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
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Time
• SKU
• Quantity
• Lot
• Lot Attributes
• Serial number
• Status / Hold codes
Bin level visibility across multiple facilities:
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Time
• Slotting based upon inventory movement, product groups and UOM
• Reduces extraction time
Slotting:
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Time
• Frequency
• Scheduling
• Product Classification
• Trigger cycle counting based on exceptions
Timely Cycle Counting:
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Time
• RF Picking strategies based upon zone
• UOM based Allocation and Picking strategies
SKU specific picking rules
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Time
• Alerts on exceptions
• Warn users of missing deadlines
• Escalations upon non-attendance of tasks
Automated Exception Alerts
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Time: Visual Warehouse Viewer
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Time: Dashboards and KPI Charts
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Time: Exception based alerts
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Time
• Improved inventory availability
• Reduced inventory levels
• Increased inventory turns
• Reduced pilferage, loss, damage
• Reduced cycle time due to automated feedback
Results:
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Touch
• RF directed put-away
• RF directed picking
• Voice directed picking
• Dynamic Task Management
• Task interleaving
System Directed:
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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:
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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:
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Reduced errors: < 0.1%
Hands/eyes free: 25% productivity
Reduced training time / multiple dialects
Touch: VOICE
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Customer Proof Point –
Future Supply Chains
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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
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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
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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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