Warehouse Information

Communications Technology
Introduction
• Information and Communication Technology (ICT) tools commonly used to effectively manage warehouse
operations and the entire supply chain system include Warehouse Management System (WMS),
Electronic Data Interchange System (EDI), Barcode and Barcode Scanner, Radio-frequency Identification
(RFID), and others Awuah-Gyawu et al. (2015).

• The Emergence of ICT

• The need for increased productivity and efficiency led to the advent of computerized solutions in the
1970s
• The 1980s saw the introduction of the Supply Chain Management (SCM) industry, with WMS as a crucial
component.
• Technologies, a pioneer in the supply chain industry, began offering WMS solutions in 1986
Introduction
Technologies in
Warehouse
Order Fulfillment Optimization Technology
• Pick-to-Light Systems - These systems use specific
light displays to direct warehouse operators to product
locations. They make it easier for operators to know
which products to pick and how many.
• Benefits of Pick-to-Light Systems:
• Increased picking productivity
• Better accountability
• Real-time product or order sorting
• Fewer errors
Technologies in
Warehouse
Order Fulfillment Optimization Technology
• Put-to-Light Systems - This technology helps direct
operators on how and where to allocate products in a
warehouse for orders.
• Benefits of Put-to-Light Systems:
• High-speed order sorting capability
• Lower cost operation
• Ideal for smaller but consistent daily orders
• Requires less floor space
 Technologies in
Warehouse
Warehouse Robotics
Technology

• One of the most sought-after

technologies for warehouse
management.

• With increasing order volumes,

numerous products to navigate,
highly personalized order
packing, and faster shipping
requirements, robotics solutions
will help effectively respond to
volume growth and perform more
tasks with less labor and at a
lower cost.
Technologies in
Warehouse
Warehouse Robotics Technology

• Benefits of Warehouse Robotics:

• Reduced operational and labor costs

• Improved productivity

• Higher-order accuracy

• Faster cycle times

• Reduced safety incidents

How Does Warehouse Management Affect Supply Chain
Management?
• Warehouse management is the central link in supply
chain management. It’s the all-
important bridge between producing a product and
delivering it to customers. Warehouse management
helps
organize products to make sure that they’re shipped
to the right customer at the right time. This is the most
important effect on the supply chain.

• A WMS comprehensively consolidates all of our critical

warehouse data into one easily accessible platform, to
give select members of our supply chain a full view of our
workings, lightning-fast reporting, real-time statistics, and
accurate planning capabilities.
 Technologies in
Warehouse
Warehouse Management System
• Benefits of WMS:
• Real-time access to quality data giving we
increased visibility throughout our supply chain
• Accurate demand forecasting
• Reduced labour costs due to efficient labour
allocation
• Improved inventory accuracy
• Improved pick accuracy
• Decreased time between picks
• Improved warehouse flexibility and
responsiveness
• Improved warehouse safety and security
• Improved supplier relationships
• Improved customer service levels
• The ability to implement an ongoing optimisation
strategy
The Evolution of WMS
The First Computer-based WMS

• The first computer-based WMS was created by Logisticon, a pioneer in the logistics space.

• In 1967, IBM made the first computerized information future warehouse management system, used by
aerospace companies and NASA.

The Rise of Automated Storage and Retrieval Systems

• The 1970s saw the rise of computers and with them came automated warehouse storage and retrieval systems.

• One of the main advantages was the tall vertical storage aisles that enabled faster access to inventory and
maximized storage space.
Features
What makes WMS is
Special
What makes WMS is Special
COMMON CAPABILITIES OF A WMS
Receiving Inventory

• The objective is to record the receipt of goods accurately.

• The operator records the receipt of goods, customer return authorization, or a kitting or production work order in the simplest form
of receiving

• Advanced capabilities include receiving against a packing list or advanced ship notice and receiving by container.

Locating Inventory (Referred to as Putaway)

• Process of moving received inventory from the dock, kitting, or production department to a storage bin

• User Directed Putaway (simplest form of putaway): where the operator determines where to place inventory and uses a
portable terminal to record movement

• System Directed Putaway (an advanced form of putaway): WMS determines the bin in which the inventory is to be stored
and directs an operator to place inventory in an assigned bin.
COMMON CAPABILITIES OF A WMS
Inventory allocation

• Process of determining the bin from which inventory is to be picked to satisfy a demand

• The operator performs inventory allocation by choosing a bin from which to pick inventory from a list of available
bins shown on a pick list

• WMS performs inventory allocation when an order is released for picking

Picking inventory to satisfy sales, transfer, kitting, or production/rework orders

• Basically, the operator uses a printed pick list and records the results on the portable terminal.

• There are quite a variety of picking methods including pick by order, wave picking, pick and pass, and batch
picking .
COMMON CAPABILITIES OF A WMS
Replenishment

• Process of refilling forward pick bins (sometimes called dedicated or primary bins) for an item from reserve
inventory.

Shipping confirmation

• This function is often left in the enterprise software at the most basic level

Can be performed within the WMS or performed by special shipping software that operates along with the WMS or a
combination of both.
ADVANTAGES OF WMS
A WMS helps improve customer service and resource utilization by eliminating errors. The result of
eliminating errors can be measured by:

• Inventory accuracy – greater than 99% at the item and bin level.

• Zero returns due to warehouse errors

• Checking operations are eliminated

• Improved order shipment completion

• Shortened order lead time and improved on-time delivery performance

IS WMS REALLY NEEDED?
Is the benefit great enough to justify the initial and ongoing costs associated with WMS: big,
complex, data intensive, and applications?

The Claims:

• WMS will reduce inventory!

• WMS will reduce labor costs!

• WMS will increase storage capacity!

• WMS will increase customer service!

• WMS will increase inventory accuracy!

IS WMS REALLY NEEDED: REALITY
• Expectations of inventory reduction and increased storage capacity are less likely: increased accuracy and
efficiencies in receiving process may reduce level of safety stock required, impact of this reduction will be
negligible in comparison to overall inventory levels.

• Lot sizing, lead times, and demand variability control inventory levels: WMS not likely to have a
significant impact on any of these factors.

• WMS certainly provides tools for more organized storage resulting in increased storage capacity, it shall be
relative to just how sloppy pre -WMS processes were.

• Determining factors to implement a WMS is associated with the need to do something to service your customers
that your current system does not support (or does not support well) such as FIFO, cross-docking, automated
pick replenishment, wave picking, lot tracking, yard management, automated data collection, MHE etc
Existing WMS Customers
WMS Case Study on Warehouse for
Electronic Data Interchange
• Electronic data interchange, or EDI, is all about the exchange/sharing of documents in a standard format between systems. EDI
enables companies to exchange information electronically with trading partners, such as suppliers and customers.

• Electronic Data Interchange (EDI) is a fundamental method for document exchange in the warehousing and third-party logistics
(3PL) industry, allowing you to track the real-time movement of goods across the supply chain.

• Benefits:
 EDI in IKEA
Store and warehouse has own systems.
IRE: IKEA Retail Equipment.
• Swedish furniture retailer Ikea has signed a
multimillion-dollar software contract with
VerticalNet as part of its plan to set up a portal for
negotiating and communicating with suppliers
online.
• Ikea plans to use the portal to negotiate contracts
with manufacturers that supply the company with
home furnishings it sells in 170 stores around the
world.
• Ikea expects the portal to facilitate
communication-related to store sales and
manufacturing plans with hundreds of
manufacturers and suppliers
Barcode vs RFID
• Many warehouse managers are turning to automation technologies to
improve operational efficiency, reduce costs, and remain competitive. Of
these technologies, barcode scanning has remained one of the most popular.

• While barcode scanners require a line of sight to scan each code individually,
RFID scanners can read multiple codes at once, which can help streamline
operations.

• RFID systems are much more efficient for scanning a large number of items
but can be more expensive and require more setup than barcodes.

• On the other hand, barcode systems can sometimes be more accurate but are
less durable and secure than RFID.
Example RFID

• RFID technology can help automate some of the tasks that occur during the
receiving and shipping processes, in turn increasing efficiency and reducing
human error.

• A shipment arrives at the warehouse receiving dock and is unloaded from the
truck.

• An RFID tag is attached to the items (or entire pallet) in that shipment.
• Each tag has internal memory on which an item’s information is stored and
modified as it moves through different processes in the warehouse.

• The RFID tag transmits the shipment or item’s information to a central database
via an electromagnetic signal.

• The warehouse management system analyzes and updates the data as the item
progresses through the warehouse system.
Application IOT

• Real-time Tracking and Enhanced Visibility

• Improved Inventory Management

• Reduces Risk And Cost

• Improves the accuracy and scalability of

projections

• Employee Productivity
IOT Example

• IoT is changing the

picture of warehouse
management at a fast
pace.
• Using IoT devices like
RFID tags and sensors
enables warehouse
managers to keep track
of the exact location and
progress of the product.
 IOT: wearable technology

• Wearable technology is an electronic

device worn by a person that receives
and transmits data to and from another
device.

• In warehouses, the most common

wearable technologies are smart glasses,
activity trackers, and many others.

• These devices allow everyone to perform

their jobs and communicate with their
managers without having to hold or let go
of the phone or tablet.
IOT: Sensor
HOW YOU FEEL ABOUT AUTOMATION?
If you a worker:
• How do automation technologies
help you do your current jobs?
• How do you feel about working side
by side with a robot? What do you
like and dislike about it?
• What safety challenges are you
facing in warehouse?
If you are a supervisor:
• How has automation impacted
operations and your role in the
warehouse?
• What are some of the challenges
that have emerged?
Concern:
• Fear of job loss
• Inadequate training using new
technology
• Unreliable technology
Optimism:
• Improve safety
• Increased speed and efficiency
• Higher quality work
Decide If It’s Time to Automate Your Warehouse
Answer these questions before committing to warehouse automation projects:
1. Are your customer orders delayed due to a limited workforce?
2. Are your existing warehouse processes and procedures labor-intensive?
3. Is your order fulfillment capacity declining?
4. Are your inventory counts inaccurate?
5. Are you still using legacy warehouse management software or manual inventory management tools
like spreadsheets?
6. Is customer satisfaction data indicating problems in the supply chain?
7. Do you have to increase/decrease your workforce to meet fluctuating demand?
8. Do you have buy-in from key stakeholders?
When the right technology is set up properly, the impact is substantial