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03-23-05
WMS. How to choose the best for your warehouse 30 Sept 2005 page 2 EDS Internal
IT Technology in the Logistic environment
STANDS FOR
WMS Warehouse Management System
SCM Supply Chain management
ERP Enterprise Resource Planning
EDI Electronic Data Interchange
B2B Business to Business
COTS Commercial Off the Shelf
ASP Application Service Provider
BoB Best of Breed
RFID Radiofrequency Identification
LGV Laser Guided Vehicle
WMS. How to choose the best for your warehouse 30 Sept 2005 page 3 EDS Internal
WMS definition
WMS. How to choose the best for your warehouse 30 Sept 2005 page 4 EDS Internal
WMS processes coverage
WMS. How to choose the best for your warehouse 30 Sept 2005 page 5 EDS Internal
Logistic Value Chain and WMS
Deconso-
Consolidation Consolidation
lidation/Ware
Empty
Marketing/ Pre- /Warehousing Trans- Main Trans- On- -
/Warehousing Distributi
Booking Equipment
Sales carriage Value-added shipment Carriage shipment Carriage housing/
Value-added on
Delivery
Services value-added
Services
Services
WMS WMS
WMS. How to choose the best for your warehouse 30 Sept 2005 page 6 EDS Internal
A warehouse is not a so complex installation.
Complex
warehouse
layouts
Process Integration
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WMS Logistic Areas under control
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AS/RS : Automatic Storage/Retrieval System
Characteristics
Increase storage capacity with 9 to 15 height racks
Quicker access to locations (improve warehouse performance)
Process Automatization
99,99 % Accuracy
WMS. How to choose the best for your warehouse 30 Sept 2005 page 9 EDS Internal
WMS. How to choose the best for your warehouse 30 Sept 2005 page 10 EDS Internal
Miniload
Characteristics
Increase storage capacity with 20 to 30 height racks
Increase the number of references to be storaged.
Accuracy and improvement on manual picking operations
Continue Inventory control
Commonly used for low movers
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 12 EDS Internal
Robotic Picking
Characteristics
Improve performance on order preparation
Optimize transport utilization
Safer Preparation
Savings on preparation processes
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 14 EDS Internal
Aerial Rail
Characteristics
Aerial movement of pallets without disturbing operations
Move product from different logistic aereas
Quicker and safer than manual movement..
Layout modifications are usually expensive
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 16 EDS Internal
RF Materials Movement
Characteristics
On-line order preparation management
Accuracy on preparation
Improve Resources optimization in the warehouse
Management of discrepancies on line.
Traceability across the operations.
Replenishment management on-line
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 19 EDS Internal
Recogida por Radiofrecuencia
Caractersticas
Facilita proceso de preparacin del pedido
Gestiona incidencias on-line
Facilita la identificacin de paquetes para envio a Cliente Final
Aumenta la Fiabilidad del envo
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Caractersticas
10.7 Lectura de Etiquetas de Forma Automtica
Fiabilidad del Proceso
Aprovechamiento y mantenimiento de la Informacin a travs de la cadena de Suministro.
Automatizacin de Operaciones repetitivas
Rapidez y eficiencia en la utilizacin de elementos mecnicos
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 22 EDS Internal
Caractersticas:
10.8 Picking a persona
Aumenta la productividad del proceso.
Mayor fiabilidad de las operaciones.
Disminuye los tiempos muertos por desplazamiento de las personas.
Mejora la ergonoma del Puesto de trabajo.
Realiza inventarios permanentes.
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WMS. How to choose the best for your warehouse 30 Sept 2005 page 24 EDS Internal
10.9 Picking Convencional
Caractersticas:
Mtodo alternativo a la RF, en el caso de problemticas en las que el Picking sin Papel no se rentabiliza.
Utilizado para servir pedidos con cantidades unitarias.
Control de la Lista de Contenido.
Generacin de Etiqueta identificativa.
Clculo volumetrico de las cajas.
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WMS Characteristics
Sales Accountability
Global Stock Control Production Plan
Level 1 ERP or SCM applications Material Purchase orders Administration
Providers orders control EDI
Customer orders control Human resources
Item Master Data
Conveyors
- Boxes Flow Control
Control and Monitoring - Monitorizatin
Level 3 - System Control
System Cranes
LGV
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WMS Architecture Diagram
ERP
ERP
WMS
Automatic
Warehouses
PLC
WMS
Control and
Monitoring
System
WMS. How to choose the best for your warehouse 30 Sept 2005 page 29 EDS Internal
Agenda
WMS. How to choose the best for your warehouse 30 Sept 2005 page 30 EDS Internal
WMS Landscape
The market of WMS applications is highly fragmented with a lot of regional
solutions implemented locally and not supported outside the region.
ERP/WM module are basic and technology integration inside these modules
requires a high degree of expertise in the ERP module, in the technology
connectivity and in the business itself. People with high expertise level are difficult
to find .This modules are not allowed to manage complex warehouses and usually
requires expensive add-ons.
WMS solutions , usually not include any option to manage automatic zones, so
very often is required to buy specific solutions for this kind of areas.
WMS. How to choose the best for your warehouse 30 Sept 2005
SCM /WMS Landscape
WMS. How to choose the best for your warehouse 30 Sept 2005
SCM Landscape
WMS. How to choose the best for your warehouse 30 Sept 2005
3PLs Main Challenges (example 1)
3PLs have increased dramatically the number of different solutions and providers of WMS solutions
based on the number of business they have reached. They are looking for a more standard IT platform to
make savings, be able to offer new services and leverage facilities and users.
Standard
Standard
30
27
25
Generic Public Warehouse is defined as a multi-client warehouse
20
that is not included in the following categories: 21
- factory warehouse 15
13
- automotive factory warehouse 12
10 12 12 12
- fully mechanized warehouse 6
- fashion specific 5 5
4
3
2 2 2 2 2 1 1 1 1
1 1 1 1
0
WMS. How to choose the best for your warehouse 30 Sept 2005 page 34 EDS Internal
Manufacturer Warehouse Organization (Example 2)
Manufacturers,between others, have increased their facilities introducing new installations. After several years they have a warehouse composed of different
WMS solutions with different providers and out of date equipment, there is an option to migrate to a new platform able to manage all the different installations
from only one solution
ERP ERP
Shuttle 1 GTKL
HRL
Specific WMS (kardex)
SystemShuttle 4 VAX-4200
KTKL MTKL SUN SF6800
(kardex) HP-9000 HP-9000 CCS
PC PII
TCP/IP
Linux
Profibus FMS
Profibus FMS
Profibus FMS
Serial 20mA
Profibus DP
SINEC/H1
SINEC/H1
DK
Middleware SC Unix
Profibus FMS
Display
PC MASTER
PLC MASTER
PLC Conveyor
PLC Conveyor
PLC Network
PLC 1
SINEC L1
(Conveyor)
PLC
PLC 2
PLC FA
(Conveyor)
PLC FA
PLC 4
PLC 0
C1
PLC 11
PLC 2
PLC 0
PLC 9
C2
C3
WMS. How to choose the best for your warehouse 30 Sept 2005 page 35 EDS Internal
Manufacturing Integrated solution (example 2)
(WMS )
GTKL
MTKL
KTKL
Specific WMS HRL
System CCS
TCP/IP
Visualisation/Scada
Network switch System
Network switch (WinCC)
Middleware/
Network switch
TCVP/IP
Scada
TCVP/IP
TCP/IP TCVP/IP
Display
PC MASTER
PLC Conveyor
PLC Conveyor
PLC MASTER
PLC 1
SINEC L1
PLC Network
PLC CCS
(Conveyor)
PLC 2
PLC FA
(Conveyor)
PLC FA
C1
PLC 11
PLC 2
PLC 0
PLC 9
C2
C3
WMS. How to choose the best for your warehouse 30 Sept 2005 page 36 EDS Internal
Agenda
WMS. How to choose the best for your warehouse 30 Sept 2005 page 37 EDS Internal
ERP versus Best of Breed (BoB)
Two different ways to cover Warehouse requirement.
ERP : Enterprise application able to cover most of the requirements of
a company . Analyze the requirement and adapt the requirement
to the ERP functionality.
BoB: look for best solutions in the market to cover an specific
requirement
Compromise solution : Use ERP for the core requirements and BoB for
the specific requirements .
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Wider market adoption commoditizes these standard solutions and
their competitive advantage diminishes over time
Time
Business users are demanding new sources of competitive advantage
through Information Technology
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Enterprise 2
(eg: Supplier, Customer)
Implications
Improved decision support through personalised, targeted From micromanagement
information the Right 6! to management by exception
Deliver: To elicit: From transactions.to eventsto
Right information Right decision indicators (that forewarn about
future events)
Right format Right action(s)
Right person From hindsightto insight
to foresight
Right time
Organisation productivity monitoring
Continuous change & improvement
WMS. How to choose the best for your warehouse 30 Sept 2005 page 40 EDS Internal
Source: EDS client and market analysis; ECR; GMA; IGD; Forrester
Functional Solution on a Specific Purpose Warehouse
Level 1ERP/WM
Level 2 WMS
Level 3 SCAT
Level 3 SCAT
Level 3 SCAT Level 3 SCAT
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Advantages for Case 3
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Case 4 - Mixed Solutions (ERP/WM Middleware)
ERP Server
Storage
Replenishment
Transport Orders Movement WMS Server
Preparatin
Picking
Storage confirmation
Replenishment confirmation Transport orders
Movement order Confirmation confirmation
Picking confirmation
Scanners Printers
RF Terminal Other
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Agenda
WMS. How to choose the best for your warehouse 30 Sept 2005 page 44 EDS Internal
SILO History
1990. WMS experience started in Spain as a leveraged application based on GME WMS experience.
First customers were Danone, Boehringer M. and Delphi
1994. EDS develops and implements an established WMS solution in Iberia, focused on complex
installation. Main customers are: Opel, Henkel, Novartis.
1996. This solution includes RF technology as part of the WMS options. Projects on South-America
and Europe start in collaboration with other EDS groups (Molinos (Arg), Atlas (Bel)).
1999. SILO wins new customers for small and large installations (Telefnica, CEAC,SSM) and is
implemented to control providers malls for SILS sequencing and cross-docking areas in the
automotive environment.
2000. First steps are taken, to package and market SILO as an industry solution to increase EDS
industry recognition in logistic arena. SILO is consolidated as a product for warehouse management
system in EDS. New projects are signed in EMEA to implement this solution.
2001. Warehouse experiences are extended to new market alternatives: Global Customers with
different WMS requirements (3PL), Manufacturing companies with important logistic issues and so
on.
2003 - 2005. New projects are signed with Opel Germany and Vauxhall to include SILO as the
standard solution within GME to manage automatic warehouses.
2003 SILO is promoted as an EDS solution within the EDS Portfolio.
2005. SAAB proposal to upgrade to GME standard SILO solution for automatic warehouses. SILO
sold to Coca-Cola distributors and first steps to be implemented in the States within the BPO
business for Consumer Direct.
2005. SILO is included as a manufacturing solution within the AIU Manufacturing unit
WMS. How to choose the best for your warehouse 30 Sept 2005 page 45 EDS Internal
SILO - The EDS WMS Solution
WMS. How to choose the best for your warehouse 30 Sept 2005 page 46 EDS Internal
SILO-Auto Mechanical Elements Integration
Servidor Silo
Red de PLCs
The Module allows the possibility to parameterize each installation and define different criteria in
the order selection either to prioritizing Movements Optimization or material FIFO.
It internally manages the logical path definition, so that in case of an event, failure or maintenance in
a mechanical element, it's able to use alternative routes to complete the Movement .
Generates statistics about failures in the mechanical elements or the number of movements
of these elements. This allows for the study of the efficiency of these elements.
WMS. How to choose the best for your warehouse 30 Sept 2005 page 47 EDS Internal
SILO-Auto Visualization
SILO-Auto visualization is a set of tools oriented to facilitate the control and
management of full automated installation.
Adapted to each layout, gives a complete view of all the parameters and status required to
control and manage the performance on automatic installations :
Windows based, updated on user preferred time cycle
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SILO-RF Picking Strategies
Layout Parameterization:
Picking zones Layouts
Technology to be used in each zone( RF, Paper, Pick to Light, Voice
Recognition)
Locations classifications and order. Management of picking routes.
Automatic replenishment between zones
Resources Parameterization
Human and Technical resources definition ( Pickers, RF terminalsl,
Resources assignation to different zones including capacity.
Definition of tasks in each zone .
Assignation of resources to zones and tasks.
Picking preparation Parameterization
Preparation orders parameterization
Identification of special criterias for preparation
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SILO Open Platform
Ad-hoc Package
development
Component
Component Architecture
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Agenda
WMS. How to choose the best for your warehouse 30 Sept 2005 page 51 EDS Internal
Telefnica de Espaa
Spain:
WMS. How to choose the best for your warehouse 30 Sept 2005 page 52 EDS Internal
Telefnica de Espaa
Logistics. Services
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New Logistic Centre
Location
La Corua Bilbao
60
0
400 km
km Zaragoza
m
350 k Barcelona
m
Madrid 600 k
350
km
km
Valencia
0
50
WMS. How to choose the best for your warehouse 30 Sept 2005 page 54 EDS Internal
New Logistics Centre
Technical Design
Tray automatic
warehouse Order preparation area
5.600 locations 15.000 Lines / day
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Warehouse layout
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Telefonica Logistic Centre
General concept of organisation
PROVIDERS
Reception Reception
Warehouse
Order External For Full boxes
Area Special Built boxes picking
Picking
Prepar. Items
Dispatch Shipping
CUSTOMERS
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Telefonica Logistic Centre
General concept of organisation (II)
Receiving area
Full boxes
Built boxes Automatic classification by
Picking
Picking
distribution routes.
Classification
Shipping
depending on articles.
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Telefonica Logistics Centre
Management System Structure
Communication on-
line
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Agenda
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Summary
WMS are solutions oriented to manage every resource in the warehouse. From work
force to mechanical elements, in order to ensure the quality of the work done as well as
to reach the maximum warehouse performance
There are different approaches to the WMS solutions . The appropriate solution
depends on the warehouse layout and flow of materials and the company orientation
towards ERP or BoB solutions
There are many opportunities for improvement in the companies related to the WMS
issues . Standardization and upgrading of current technology can reduce on going costs
and prepare the company for the new technology coming.
3 PLs are pushing new requirements for the IT solutions due to the orientation of its
services dedicated to provide service to more than one customer and the necessity to
create warehouses networks in the supply chain.
WMS. How to choose the best for your warehouse 30 Sept 2005
Questions and Comments 17 Nov 2005
03-23-05
EDS
Avd Gomez Laguna 25
Zaragoza
+34 976767000
silo.ind@eds.com