Driving Logistics Excellence using

Warehouse Automation and Oracle

WMS

WMS Implementation at MTN SA’s Midrand

Distribution Center
Jody Ayres
President
Ayres Systems Inc
 MTN Group Profile
• The MTN Group is a multinational telecommunication
group providing network access and business solutions.
• MTN Group’s GSM network is one of the largest in the
world.
– As of 1 November 2007; MTN recorded more than 54 million
subscribers across its 21 countries.
– It has approximately 4000 sites.
– Covers 19,200 km of road, 900,000 km2 of land, and provide
mobile access to 94.5% of South Africa’s population
• MTN South Africa (MTN SA) is the second largest
cellular network operator in South Africa.
– Launched in 1994; MTN SA has over to 14 million subscribers as
of 1 September, 2007.
– MTN SA has 36% market share within a population of 46 Million
 MTN Group Geographies
• South and East Africa
– MTN South Africa, MTN Swaziland, MTN Zambia, MTN
Uganda, MTN Rwanda and Mascom Botswana.
• West and Central Africa
– MTN Nigeria, MTN Cameroon, MTN Congo-Brazzaville, MTN
Côte d’Ivoire, MTN Benin, MTN Ghana, MTN Guinea Bissau,
MTN Guinea and MTN Liberia.
• Middle East and North Africa
– MTN Irancell and MTN Afghanistan, MTN Cyprus, MTN
Sudan, MTN Syria, MTN Yemen and Mednet.
 MTN Group Growth Strategy
• Pursuit of new geographies.
– Routinely evaluating new license bids and acquisition
opportunities in emerging markets.
• Making small/uneconomic licenses attractive:
– MTN Group has adopted a regional approach aimed
at consolidation and creating economies of scale.
• Focus on R&D and innovation to create new
services.
• Leveraging common infrastructure to exploit new
services.
 MTN SA Growth Strategy
• MTN SA has registered double digit growth in the past 3
years and has similar forecasts for the next 3 years.
• Chose to automate their main Distribution Center in
Midrand SA to cater to the massive transaction volumes
expected.
• Existing customer with Oracle applications and
technology experience.
• Chose to integrate the existing Oracle E-Business Suite
for managing their warehousing needs with Oracle
WMS/WCS.
• Chose to achieve Logistics Excellence in their
Distribution Center using Warehouse Automation and
Oracle WMS.
 MTN SA Integration Objectives
• Provide maximum facility throughput of sales
order processing.
• Provide maximum accuracy of sales orders.
• Provide reliable 24/7 operational capability.
• Reduce shipping costs through accurate carton
utilization and packing processing.
• Reduce the dependency on large staffing
requirements to operate the facility.
• Maximize the real-time operational benefits of an
integrated ERP and automated system.
 MTN SA Integration Team
• MTN SA chose to use the Oracle Warehouse Control
System (WCS) to integrate and control the Siemens
automation system directly from the Oracle WMS.
• MTN SA provided technical and functional staffing to
implement Oracle WMS.
• Siemens/Dematic provided and installed the material
handling equipment and floor level automation control
system.
• AyresSI and Albus Tech provided the seamless
integration solution between the Oracle WMS/WCS, the
Siemens Automation system and RTT the 3rd Party
Logistics provider.
 MTN SA Architecture
Separate Functions
ORACLE E-Business Suite To
Leverage Investment

ORACLE WMS

ORACLE Real-Time
WCS Integration
Automation
CarBri
Systems
 How To Integrate for
Excellence
• Align the Integration Objectives with the
Technology Available
– Keep it Simple
• Divide the Integration Responsibility
– Define the Roles and Specifications at All touch
points
• Coordinate the Architectural Approach
– Use What is Available Today
• Take Advantage of Existing Products and
Standard Options
• Innovate Solutions When Necessary
 Oracle WMS Integration
• Part of the E-Business Suite
– Common Data
– Seamless Integrated with other Application Product
• Integrated Business Flows Drive Action for
Automation
– UI for Device Definition and Event Mapping
• Open API for Device Integration
– Autonomous or Legacy Systems
– Custom Device Integration
• Warehouse Control System (WCS)
– Integrated with Business Flows
– Configuration driven
– Queue Management of Actions and Messages
• Transport Bridge for Device Communications
– TCP/IP for Socket Communications
 Oracle WCS Integration
• Seamless operation within WMS
– Role assignment for access and navigation
– Integrated Business Events
• Control Board View and Management
– Graphic Display of Message Status
– Drill-Down capability
– Query function for investigation and analysis
• Configuration Settings
– Device Specific
– Business Event Specific
– Global
• Flexible construction of bi-directional message formats
 Oracle WCS Features
• Role Level Access
– Supervisor level for Management
– User level for viewing of operations
• Asynchronous Listener Process
– Graphic Display of Message Status
– Drill-Down capability
– Query function for analysis
• Configuration Settings
– Device Specific
– Business Event Specific
– Global
• Flexible construction of bi-
directional message formats
 Oracle WCS Management
• Configuration
– Activate Settings
– Copy, Edit and Export
– Real-Time Parameter Control
– Flexible construction of bi-
directional message formats
• Monitor Queue Activity by
Device or Business Event
– Query Function
– Drill Down
– Directive Status and Detail
Oracle WCS Integration

ORACLE
WCS
 MTN SA “Goods to Man”
• Change order picking from “Man to Goods” operations
• “Goods to Man” operations encourages automation
solution excellence
– Conveyor for item transport
– High Speed Sorter for item routing
– Put to Light for packing accuracy
– ASRS Carousel/Lift for inventory Security and Storage
Optimization
– Check Weight Scale for shipping accuracy
– Automated Carton Erectors for package creation
– Automated Carton Labeling, Taping, and Sealing
• Reduces Labor Requirement
 MTN SA Automation

Replenish
Pick Release
Rejection Conveyer

Pick subinventory
[120 locators] Packing stations / chutes
[134 locators]
Carousel
Picking Conveyers Manual

High value Invoice 2

S Sorter device S W S
Picking Conveyers Takeaway Conveyer Finishing Conveyer
Invoice 1

Weighing
Picking Conveyers Station
Takeaway Conveyer
C C C Packing stations / chutes
Carton Erectors

Staging Lanes
[6 locators]
MTN SA Automation
MTN SA Automation
 MTN SA Integration
• Zone based Sales Order Picking to Routing Conveyor
• Automated Carton Erectors for packing
• High Speed Sorter Routing (10,000 items/hour)
• Pack-To-Light Carton Packing
• Packed Carton Routing
• On-Demand Replenishment (Bulk to/from Carousels)
• Carousel ASRS Operation
• Carton Check Weight Scale Validation
• Shipping Label Printing per carton
• Manifest and Invoice Printing per delivery
• Screen-less Pick Drop and Ship Confirm
• TCP/IP Socket Message Communion
• Web Service for 3rd Party Logistics integration
 MTN SA Routing Conveyor
• Zone based Sales Order Picking to
Routing Conveyor from Three Levels
– Multiple Pickers per Zone
– Serial and Non-Serial Items
• WCS for Pick Load Event
– Determines the LPN to pack
– Sends Carton Erector Box size and LPN
– Allocates Chute for both Carton and Item
Routing
 MTN SA Carton Erectors
• Automated Carton Erectors for packing
– Buffers Cartons
– Prints Routing Labels
• WCS Sends Routing and LPN
• Concurrent Routing to Chutes
 MTN SA Chute Sorter
• High Speed Sorter Routing (10,000 items/hour)
– 130 Chutes for routing
– Upper level Chutes for Item accumulation
– Lower level for Carton routing
• Pack-To-Light Carton Packing at each chute
– On Complete; Items packed and forwarded
• WCS Chute Control
– Routing Complete light
– Timeout status light
– Operator interacts with light
 MTN SA On-Demand
OM Releases Sales Order
WMS Rules Builds Pallets Next Move Order

Concurrent Program Creates Queue

Of Replenishment and Evaluates Capacity Replenishment
Of Pick Face to Define Wave Drop

Move Order for Replenishment of Aging

Move Order for Replenishment

 MTN SA Carousel
• Secure High Value Item Storage
• On-Demand Replenishment (Bulk to/from
Carousels)
• WCS Controls Carousel ASRS Operation
– Retrieve Commands and Display Description
– Pick Load
– Subinventory Transfer
– Putaway Drop
 MTN SA Check Weight
• Carton Check Weight Scale Validation
• WCS Evaluates Weight Tolerance
– Tolerance settings are dynamic by content
– Determines Processing
– Determines Routing
– Screen-less Pick Drop and Ship Confirm
– Determines Printing Instructions
• Accurate to +/- 5gm
 MTN SA Printing
• Real-Time direct WCS Integration to WMS
and the Printer Station
• WCS Builds Shipping Label Printing per
carton and sends to Printer
• WCS Builds Manifest and Invoice Printing
documents and sends to Printer
– Consolidates multiple order printing
– Sends to automated package wrapping
 MTN SA Real-Time
• WCS Integration Functions Expanded
– No Custom Tables
– Configuration and Parameter Driven
– PL/SQL Packages
– Minimum WMS Customization
– Simple Performance Based Architecture
• WCS Builds Communication Messages
– Average processing at High Speed Sorter 100 ms
– Event driven from WMS
– Event driven from Automation
• WCS Performance Scales
– Worker Processes For Invoice processing
– Multiple Devices Controlled Concurrently
 MTN SA Summary
• WMS/WCS seamlessly Integrated with
multiple automation components
• Increased Facility Throughput
• Reduced Staffing Requirements
• Start of more Innovative Integration with
the E-Business Suite Applications
• Start of Logistical Excellence across other
Warehouse and Distribution Centers