CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE

OPERATION

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Development of the Common Standard Curricula on International Transport and Logistics Basic Training for
ASEAN Member States under Sustainable Human Resource Development in Logistics Services

IMPORTANT NOTICE
This Training Material is belonging to ASEAN Copyright
Under Development of the Common Standard Curricula on
International Transport and Logistics Basic Training Program
For ASEAN Member States

*Trainers who intend to use this material shall request ASEAN

Secretariat to grant the right of usage directly or through Mr. Somsak
Wisetruangrot –AFFA Logistics Institute
somsakwise@outlook.com
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

MODULE CONTENT

• Role of IS/IT and its impact to warehouse operation

• Types of technology applicable to warehouse operation

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

MANAGEMENT INFORMATION SYSTEM (MIS)

• MIS is the use of information technology, people, and business processes to

record, store and process data to produce information that decision makers can
use to make day to day decisions.

• MIS provides managements with information and support for effective decision
making.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

5 MAJOR COMPONENTS OF MIS

These components must work together to achieve business objectives

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

COMPONENTS OF MIS

People: Users who use the information system

Data: The data of day-to-day transaction that the information system records

Business Processes: Procedures put in place on how to record, store and analyze data and
guide users how to work efficiently.

Hardware: These include servers, workstations, computers, networking devices, etc.

Software: These are programs used to handle the data including system software and
applications software.
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION
Customer Service Officer
Product DB System
ROLE OF MIS Product
SAP/OMS Product
DB
Product Mgt Data
Desc Classification Data
Part #
Quantity
Compliance System
ASN Compliance Exp validation result
System
Ship PO
Owing to the importance of IS New PO Confirm
ASN
PO change
and IT, an inter-organizational PO cancel Goods Factory
New SO Receipt International
information system within the SO change (GR)
Boundary
SO cancel
warehouse chain is needed. ASN
Pick List
Warehouse/WMS
(DO)
Receive/Pick/
Customer
Pack/Ship
EDI/XML
Fax/Phone

Info flow
Good Issue (GI)
Material flow

Information and Physical Flow in Warehouse Chain

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

ROLE OF MIS (CON’D)

• To provide information ready to company decision makers

• To collect data

• To promote collaboration in the workplace

• To run possible scenarios in different business environments.

• To provide accurate projections of the company’s standing in the short and long
term.

• To track the implementation of particular decisions in a company.

• To improve company’s reporting. 7

 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

ADVATAGES OF MIS

• All stakeholders in the company have access to one single database that
holds all the data that will be needed in day to day operations.

• Employees and other stakeholders in the organization will be able to spend

more time doing productive tasks.

• MIS creates the power of data processing tools that help significantly
improve the quality of decisions made in the company.

• Reduced amount of paperwork.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

ADVATAGES OF MIS (CON’D)

• MIS ensures that employees have easier and closer interaction with
information about the progress of any process within the organization
through the use of mobile devices such as tablet computers and
smartphones.

• Reports make it easy for companies to easily identify their strengths and
weaknesses in carrying out various tasks.

• Most MISs provide a channel for customers to collect and store vital data and
feedback from customers.

• MIS helps eliminate redundant roles. 9

 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

IMPACT OF E-COMMERCE

Impact of e-commerce on Warehouse 10

 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION
IMPACT OF E-COMMERCE (CON’D)
• Companies have a global presence and customer has global choices.
• Companies can improve competitiveness and quality of.
• Companies can monitor customers’ preferences electronically.
• Companies can analyze the interest in various products.
• Companies can collect detailed information about clients’ choices.
• The roles of the intermediary and traditional retailer or service provider are
reduced.
• Reductions in transaction costs.
• E-commerce allows the creation of virtual.
• Small companies which lack significant resources can invest in infrastructure
and marketing. 11
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

INFORMATION FLOW - INBOUND

PHYSICAL FLOW

DATA INPUT TALLY UNLOADING LABEL PUT-AWAY

PRINTING

INFORMATION FLOW

Automatic Put-
Input Receipt Count Sheet Label Printing Confirmed
away List
goods receipt 12
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

INFORMATION FLOW - OUTBOUND

PHYSICAL FLOW

OUTBOUND ASSIGN PICKING INSPECTION LOADING

ORDER STOCK

INFORMATION FLOW

Outbound orders Allocation Picking list Outbound receipt Confirmed

goods receipt 13
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BARCODE
• A bar code is a series of parallel black and white bars,
both of varying widths, whose sequence represents
letters or numbers.
• This sequence is a code that scanners can translate
into important information.

• Bar codes are used for:

- Evidence tracking
- Product shelf life & date code tracking
- Product serial number
- Warehouse locations
- Others 14
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BENEFITS OF USING BARCODE

• Improve operational efficiency
• Save time
• Reduce human errors
• Save cost
• Reliable data
• Allows faster access to information on items.
• Provides improved customer service.
• Reduction in obsolescence and deterioration of stocks
• Versatile
• Improves inventory control (inventory tracking)
• Inexpensive to design and print.
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

QR CODE

• QR Code (Quick Response) is a 2D barcode which is readable by

scanners or smart phone.

• QR code may be used to display text to the user, to open an

URL, save a contact to address book or to compose a text
message.

• The QR code contains data in the entire ‘picture’. This means

that more data can be stored in a QR code as opposed to a bar
code.
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

PROS AND CONS OF QR CODE

Advantages: Disadvantages:

• Ease of use • Users need to download a QR

• Difference ranges of use
• Trackable
• Easy way to send mobile users
to online content
• Cost-effective
code reader
• Scanning can be a long process
• Lack of awareness

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION
BAR CODE V.S QR CODE
Comparison between Barcode & QRcode
Description Barcode QRcode

Sample

Code type 1D 2D
Information density Low High
Information capacity Small Big
Omni-direction & orientation reading No Yes

Numbers, English, Chinese, pictures,

Information type Numbers, English
voice & other binary information

Error detection & correction function No Yes

Yes, must depend on database or No, depend on database or

Dependence on database
communication network communication network
Nature Object label & index Description on objects 18
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

RFID

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

RFID (CON’D)
• RFID stands for Radio Frequency Identification

• RFID is the use of radio waves to read and capture information stored
on a tag attached to an object.

• A RFID system consists of 2 parts:

- A tag (or label) embedded with a transmitter and a receiver
- A reader which emits a signal (radio frequency wave) to the tag using an
antenna

• The reader transmits the reading results to an RFID computer program.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

RFID ADVANTAGES

• Higher productivity
• Improved the quality and transparency of data across the supply chain
• Shorter process
• Lower cost (by better control of stock/assets)
• Improved efficiency and cut down on rework
• Better security
• Accurate and relevant management information
• Reliable track and trace in challenging physical environments (high humidity,
drastic temperature swings, exposure to chemicals, rough handling, etc)
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

PICK TO LIGHT
• In high-density order picking warehouse where there are multiple
picking locations that require pickers to be fast and accurate, a
“pick to light” or light-directed system can be implemented to
enhance the productivity of the warehouse.
• There are lights above the racks or bins where the employee will
be picking from. An operator will scan a barcode that is on a tote or
picking container which represents the customer order. Based on
the order, the system will require an operator to pick an item from
a certain bin.
• Two buttons for quantity correction enable the picker to increase
or reduce the displayed quantities during picking according to the
indications contained in the order. 22
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

PICK TO LIGHT (CON’D)

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PICK BY VOICE
Pick by Voice, a further development of radio frequency picking,
offers a completely voice-based interaction between picker and
system; thus the picker’s eyes and hands are free for picking.

• Online operation in direct interaction with the warehouse

management system.

• Easy customization and operation.

• Completely voice-controlled guidance.

• Individual number of pickers.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION
ROBOTICS
1. Automatically follow
picker
2. Automatically return to
staging area after picking
3. Automatically run to
picker
4. Scanner equipped in
card picking
5. Able to communicate
with multi pickers WATCH CLIP:
https://www.tompkinsinc.com/Services/Tompkins-
Robotics/robots-in-the-warehouse-a-supply-chain-game-changer 25
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BLOCK CHAIN

• A block chain is an append-only

transaction ledger. The ledger can be
written onto with new information, but
the previous information, stored in
blocks, cannot be edited, adjusted or
changed.

• The block chain is “decentralized,”

meaning it is not controlled by one
central authority.
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BLOCK CHAIN IN INVENTORY MANAGEMENT

Block chain offer following features in inventory management:

• High data security:

Data entry in the inventory management records carried out on Block chain are
encrypted, thus making it impossible to change or delete data.

• Anti-opaqueness:
All parties involved have access to a data file that is completely immutable.

• Data accuracy:
Data consistency is a thing of the past as it is spread across a public ledger the data
concurrency issues
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

EDI – ELECTRONIC DATA INTERCHANGE

integrate Solution Multi

• EDI is the computer-to-computer(system- message

protocol
Function
to-system) exchange of data in a standard
electronic format between business Format
XML FTP XML EDI Partner

partners. Conversion
Function CSV EDI Partner
CSV
VAN

• EDI is the most popular communication FLAT FLAT EDI Partner

Main
technology to improve the quality and Main
Syste
syste
m
3PL
Format Web
m
reliability of data. I/F XML FLAT servic
e
Tool FLAT EDI Partner

Software is
offered to the
Not change by
shipper who does
EDI
not have the EDI
solution.
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BENEFITS OF EDI
• Reduce cost (paper, printing, postage)

• Increase processing speed

• Transfer huge quantity of documents

• Reduce errors, improve accuracy

• Improve relationship with business partner

• Secure transaction
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

API – APPLICATION PROGRAMMING INTERFACE

• API serves as an interface between

software programs and helps them
interact effectively

• API allows software systems to

communicate with each other without
any intervention from users.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BENEFITS OF API

• Provide real-time connection (data transfer in less than a second)

• High responsiveness to issues

• Powerful features for synchronizing web applications

• Automation: workload handled by machines with fewer steps and greater

productivity.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

COMPARISON OF EDI & API

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

COMPARISON OF EDI & API

(CON’D)

Trend of migrating interface

method from EDI to API due
to advanced features

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

CLOUD COMPUTING

Cloud computing, often referred to as simply “the cloud,” is the delivery of on-demand
computing resources — everything from applications to data centers — over the internet
on a pay-for-use basis.

Features of cloud computing:

• Elastic resources — Scale up or down quickly and easily to meet demand

• Metered service so you only pay for what you use

• Self service — All the IT resources you need with self-service access
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COMPARISON OF ON-PREMISE & CLOUD

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

COMPARISON OF ON-PREMISE & CLOUD (CON’D)

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COMPARISON OF ON-PREMISE & CLOUD (CON’D)

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

WAREHOUSE MANAGEMENT SYSTEM (WMS)

• WMS is an IS/IT solution (including software and processes) that allows organizations to
control and administer the day-to-day warehouse operations.

• WMS provides visibility into a business’ entire inventory at any time and location.

• WMS manages supply chain fulfillment operations from the manufacturer or

wholesaler to the warehouse / distribution center, then to a retailer.

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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

TYPES OF WMS
WMS

STANDALONE APPS SUPPLY CHAIN SUITES ERP SUITES

• Specialized products WMS serves as one part of • WMS serves as one

without any supply supply chain system part of ERP (covering
chain functions (including warehouse SCM, HR, CRM,
management, Finance)
• Only has warehouse transportation
management features management & demand
planning) 39
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

BENEFITS OF WMS
• Reduce operating expense • Efficient labour management

• Continuous improvement • Enhanced transparency

• Enhanced security • Improved order and report accuracy

• Improved customer service • Improved responsiveness to

fluctuating demand
• Less paperwork (through EDI & API)
• Improved inventory turns
• Process and space optimization
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 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

WMS FUNCITONALITIES EXTENDED WMS CAPABILITIES - Modules

• Inventory Control WMS

• Storage Location Management Slotting Receiving Order Picking Transportation
• Quality Control
QA/Inspection
Order
Management
• Order Selection Consolidation
Supplier Physical Visibility/
• Automatic Inventory Management Put away Inventory/
Collaboration
Cycle Counting
Replenishment Inventory
• Receiving Yard Management
Cross Docking
Analytics
• Shipping Management Wave
Management
Value-Added
Services
• Operator Productivity Replenishment Loading
• Report Generation Event
RFID DC/Warehouse
Table 11-3: Record of RF/Mobile
Delivery
Management
Transfers
Time 41
 CHAPTER 5: MIS & TECHNOLOGY IN WAREHOUSE OPERATION

SAAS – WMS

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