Warehouse Management

This post is late in coming. But better late than never. Like previous years, Oracle Open World turned out to be a whirlwind of endless presentations, demos and meetings. After its over you can look back and say "whew...did it really get over?". Here is a brief recap of the event:

1. The attendance was marginally down as compared to 2008. Something that can be explained by the state of the economy
2. WMS sessions were very well attended. There was a lot of interest in MSCA sessions especially the mobility session by Jennifer Sherman and Carrie Lukatch
3. The questions during my presentation at the SIG and WMS Roadmap presentation were very interesting and indicated customer interest in new generation of features in R12.1 and R12 especially Advanced Wave Planning capabilities and forward pick replenishment.
4. WMS SIG events will be rescheduled on a weekday from next Oracle Open World. This is a really good move by OAUG
5. Increasing interest in WMS and OTM. This was also evident from the interest in the joint OTM+WMS sessions by Derek Gittoes and Jen Sherman.

Oracle Open World is just around the corner. If you have made plans to attend, please make sure to come visit us at our booth.

Members of both development and strategy team will be present at OpenWorld, so you can come with questions, leave with answers.

You can find us at:

Warehouse Management Systems Demo Grounds

Date & Time: Mon 10/12 - Wed 10/14 (all day)
Location: Exibition Hall, Moscone South S-023

Additionally, here are a few sessions that you might also want to check out:

Transportation & Warehousing: Oracle's Integrated Logistics Strategy

Host: Derek Gittoes, Jennifer Sherman
Date & Time: Mon Oct 12, 11:30 a.m. - 12:30 p.m.
Location: Moscone West Oracle Room 2014

Supply Chain SuperSession (Dual Session)

Host: Rick Jewell, Jon Chorley, Maha Muzumdar & Executive Customer Panelist
Date & Time: Mon Oct 12, 1:00-3:30 p.m.
Location: Moscone West Oracle Room 2014

Going Mobile in the Supply Chain: Which Solution is Right for You?

Host: Jennifer Sherman
Date & Time: Wed Oct 14, 10:15-11:15 a.m.
Location: Moscone West Oracle Room 2005

What is new in Release 12.1?

Host: Aditya Agarkar, Aby Joy (Igloo)
Date & Time: Thu Oct 15, 12:00-1:00 p.m.
Location: Moscone West Oracle Room 2015

Recalls happen on a daily basis in almost every industry. A quick glance at FDA's announcements we find the following major recalls in the past week:

BABYRIDE ( 09C003000 ) (Mon, 28 Sep 2009 06:00:00 EST)
PIRELLI ( 09T012000 ) (Mon, 28 Sep 2009 06:00:00 EST)
DUCATI ( 09V365000 ) (Mon, 28 Sep 2009 06:00:00 EST)
IMI Cornelius Recalls Juice Dispensers Due to Fire Hazard (Thu, 24 Sep 2009 12:00:00 GMT)
Price Rite 25 Ct Beef Bouillon is Being Voluntarily Recalled Due to Allergy Alert(Thu, 24 Sep 2009 18:11:00 EST)

A poorly handled recall can be extremely damaging to a company. If not enough products are recalled, there is a chance that potentially risky item can still put customers at risk. If too many products are called, it can incur significant added cost to the company. Furthermore, a slow response to crisis would be damaging to company brand and could even result in lawsuits. This is where genealogy comes in handy.

Genealogy is often one of the less mentioned topics of logistics planning, but nonetheless it is an important one for the reasons given above. In short, genealogy is a tool that captures and maintains product composition history. In this post, we'll discuss the two general forms of genealogy in the Warehouse Management System (WMS) and put it in context of how genealogy can be useful.

Lot Genealogy

The most commonly genealogy in warehouse operations is in the form of "Lot Genealogy". Lot genealogy tracks the composition and where used history of a lot through split, merge and move. WMS automatically logs these transactions performed on any given lot and displays them in a tree-like structure. Lot genealogy is particularly useful in product recall situations. As an example, lot genealogy can be used when a company issues a recall for all finished goods containing a tainted lot of supplier raw material.

Serial Genealogy

Serial genealogy is the complimentary version of lot genealogy commonly used for discrete manufacturing. Serial genealogy is recorded upon job assemblies when the operator enters the generated serial numbers for each assembly. Serial genealogy works seamlessly with lot genealogy in the case of lot -> serial transactions. The ability to track individual item is useful in the case of asset maintenance and returns. As an example, it is possible to look up a returned faulty return product's serial number to compile a list of components and assemblies.

Genealogy in E-Business Suite tracks in more ways than serial and lot genealogy, and can be applicable in more scenarios than return or recall. This post merely touches two out of the many ways it can potentially benefit your organization. As traceability and accountability becomes more important in industries like consumer goods and pharmaceutical, genealogy is likely to become a focus of the next generation logistics processes.

It has been 2 months since WMS R12.1 has been launched. In the last one month since the release, I did 2 Adviser webcasts on Oracle WMS with one of the sessions specifically on Wave Planning and Distributed WMS deployment. The idea behind these live webcast was to discuss how you can benefit from R12.1, the distributed deployment of Oracle Warhouse Management System and advanced Wave Planning features.

The recorded sessions for these webcasts are now available:

Post Presentation Recordings can be found using Metalink Note 740297.1

Here is a new short video of Mobile Speech Client developed by Voice Insight in use along with Oracle WMS. In the past I have blogged about the benefits of speech client and especially how it can helps you deploy voice technology using your existing hardware and minimal capex. It also scales very well i.e. start voice picking for high volume pick area or certain selected items and roll out to other areas as you realize the benefits.

http://www.voice-insight.com/Videos/MSC_Video.html

It's 4 minutes long and demonstrates the benefits of voice and mobility in a nutshell:

1) works "out of the box" for Oracle mobile applications (e.g. WMS)
2) improve productivity with hands free operations (reduce data entry)
3) requires no middleware or modification of the host system
(location alias / check digits available for any version)
4) runs completely on the mobile device (from Motorola, LXE, etc.)

Check it out. Fascinating stuff!

Replenishment is an important driver in boosting fulfillment efficiency especially in those warehouses that fulfill a large number of orders with relatively small order quantities. In this type of scenario Warehouses can be divided into zones based on material characteristics and inventory sorting e.g. a warehouse can have a bulk area that is optimized for high density storage and a forward pick area optimized for high volume picking. The forward pick area can improve order fulfillment and enhance picking productivity by minimizing travel and material handling. It is used commonly by warehouses that process large number of smaller orders and hence process units picks or each picks.

The material in the forward pick area is replenished from the reserve or bulk area which stores pallets, cases or eaches as shown in Figure 1. It typically stocks material based on the demand and helps enhance material flow in a high volume unit/each pick environment. The quantity to be replenished depends on the requirements for the item in a wave as well as the available capacity of the locators. The locators can be fixed or dynamic. For a fixed item locator replenishment always occurs to the same locator where as for a dynamic locator replenishment occurs to a dynamically identified locator.

The forward pick area replenishment feature released in R12.1 supports two different types of replenishment that can be used in the warehouse:

- Pull Replenishment
- Push Replenishment

Pull replenishment can be considered for items with uniform demand. It is called “pull” as it is initiated based on the demand, the concept is that the warehouse pulls replenishments into forward pick area based on sales order demand. It is activated during sales order release as seen in Figure 2. If the forward pick area does not have enough stock a replenishment request is automatically created, and the order lines waits for the replenishment to be completed before a task can be assigned to an operator (as shown in Figure 3). A pick task is automatically created when replenishment task is completed.

Push replenishment is suitable for items with non-uniform demand. It is called “push” replenishment as it is initiated prior to release the pick waves and the replenishments are pushed to the forward pick area before the orders are picked. The forward pick area is stocked up with the future demand based on orders coming into the warehouse in a given time period. Push replenishment can be conditional based on certain parameters. With insufficient quantity in the forward pick to fulfill the orders before they are released for picking, replenishment is requested.

Some of benefits of using replenishment:

1. Eliminate Fragmentation – Replenishment allows warehouses to setup rules to pick full cases or pallets without breaking them to eaches hence maintaining the packing integrity. The loose units in the bulk area often render the pallet unusable for movement as an entity also leading to inefficient resource allocation. However, the cases or pallets once brought to the forward pick area can be broken to loose units thus also improving labor productivity.

2. Prevent Backordering – Warehouses that have inventory will not backorder material simply because it is not in the forward pick area or in a particular subinventory. Instead replenishment is automatically requested, and a replenishment task is created to move the material from the reserve area. Following completion of this replenishment task, a pick task is automatically created thus preventing backorders.

3. Replenish Flexible Quantity – Replenishment occurs based on a fixed multiple and a min-max quantity. Warehouses can change either or both parameters to adjust to the optimal quantity for replenishment. During peak season the forward pick area can be expanded and quantity to be replenishment changed for different items. Maximum quantity to be replenished should be careful chosen. Too low of a maximum quantity will create very frequent replenishment requests. Conversely, with too high of a maximum quantity, the forward pick area leads to non-optimal storage.

4. Minimize Travel Time – Warehouse operator’s travel time is minimized by reducing the number of trips to the source inventory. Instead of fulfilling every order from the source subinventory, a replenishment request accumulates the total quantity for a line item in a pick wave. This request replenishes the forward pick area, and the operator can then fulfill the orders from this location.

Want to learn more about the new 12.1 Oracle E-Business Suite? Come join us for our special webcast next Wednesday.

Details

*Date:* June 17, 2009
*Time:* 2:00 pm MDT
*Conference ID:* 145574018
*Conference Title:* What's New in Oracle E-Business Suite Warehouse

Registration link(requires MetaLink login)

Yesterday I blogged about the Oracle announcement for distributed WMS and advanced wave planning. This story received wide coverage in the press.

Nicholas Kolakowski’s piece appeared on eWeek yesterday morning:

Oracle announced the release of a new version of Oracle Warehouse Management June 1. The scalable application allows users to manage complex warehouse operations, including multiple supply chain processes and materials management functionality. A version of the application had previously only been available to customers using the Oracle E-Business Suite. In its new and more modular iteration, the Warehouse Management application can be run outside of the E-Business Suite, allowing businesses to utilize a logistics and transportation solution without necessarily needing to upgrade other parts of their operations’ IT.

However, the new version does support earlier versions of the Oracle E-Business Suite. It also features support for multiple order capture systems under one independent fulfillment engine, multiple inventory solutions, and a variety of warehouse execution systems operating against a single global ERP system.

Jeff Moad from Managing Automation also covered this story yesterday.

Oracle Corp. today rolled out a new, stand-alone version of its Oracle Warehouse Management application, decoupling the tool from the E-Business Suite (EBS) ERP platform. Oracle Warehouse Management, previously available only as a module within EBS, can now be deployed independently, with links to Oracle and non-Oracle ERP systems. The move is part of an ongoing strategy to offer best-of-breed applications to customers outside Oracle’s customer base. The company has taken similar steps with its transportation and demand planning applications.

The announcement also signals a plan to more closely bundle Oracle Warehouse Management with the company’s transportation management application, offering them together as a best-of-breed logistics management suite. Recently, with its introduction of EBS 12.1, Oracle announced new integration points between Oracle Warehouse Management and Oracle Transportation Management, including the ability of the warehouse management system to collaborate with Oracle Transportation Management on load sequencing and cross docking.

Shayana Garlick from TechTarget covered it on their blog:

A new version of Oracle Warehouse Management, released June 1, allows users to deploy the warehouse management application as a distributed product. Users no longer have to be an E-Business Suite customer to use the application, as was required in earlier versions.

Meanwhile the documentation is available on Metalink (Note: 821294.1)

Distributed Warehouse Management System (Architecture and Solution)
The Oracle Distributed Warehouse Management System paper (April, 2009, 1.1 Mb)

The Oracle Distributed Warehouse Management System (Setup Document) paper (May, 2009, 1.9 Mb)

The Oracle Distributed Warehouse Management System (Technical Implementation) paper (May, 2009, .5 Mb)

The Oracle Distributed Warehouse Management System (Integration) paper (April, 2009, 1.0 Mb)

Another day and another new development on the Oracle WMS front. Oracle just announced the general availability of two advanced features in Oracle WMS:

This release provides customers the flexibility to deploy Oracle Warehouse Management as a distributed solution. Now, customers can take advantage of the latest industry-leading warehouse management capabilities from Oracle without upgrading to the latest version of the Oracle E-Business Suite.

"Oracle has always been committed to delivering best-in-class warehouse management capabilities through Oracle Warehouse Management," said Jon Chorley, Oracle Vice President, Supply Chain Product Strategy. "This expanded functionality combined with more integrated logistics capabilities and a new distributed deployment option is further proof of this commitment."

"Ensuring that today's complex and increasingly global supply chains run efficiently and smoothly demands effective warehouse management," said Dwight Klappich, Gartner Research Vice President. "The high velocity demands of today's supply chain require solutions that are always-on and always connected, regardless of network model, ERP or application infrastructure."

The additional features will be delivered as a patch on R12.1:

1. Distributed WMS Deployment
2. Advanced Wave Planning

WMS Deployment Flexibility

Until now Oracle E-Business Suite (EBS) Warehouse Management System (WMS) required the transaction source systems like Purchasing and Order Management and execution systems like WMS reside and operate within the same instance. With the release of Distributed WMS feature, Oracle WMS can be deployed on a separate physical instance that is distinct from E-Business Suite (EBS) instance. This feature gives powerful choices to customers to deploy WMS either as an "integrated" as a module within EBS or as a "distributed" and independent solution installed on a separate instance. More specifically:

1. Customers who want the latest WMS features in R12.1 can have WMS deployed on a separate instance without upgrade of the entire application suite.

2. Oracle WMS can be deployed along with a EBS or non-EBS host system

3. Warehouse with network connectivity issues can have their independent WMS instance for an "always on" WMS solution

The feature also ships with an integration framework based on Oracle Data Integration (ODI) tool. More information on this release and useful whitepapers can be found using the following Metalink Note:

Distributed Warehouse Management System (Note: 821294.1)

One thing to be noted, is that Distributed WMS is not a separate product and all features developed in WMS (now or in future) will be available irrespective of the choice of deployment.

Optimize Warehouse Execution using Advanced Wave Planning

Another equally important milestone for us is the release of advanced wave planning. Until now the pick waves generated from pick release functionality lacked the planning aspects of fulfillment i.e. preview of lines and tasks, expected completion, fill rate and labor needs. Advanced wave planning gives planning capabilities and much more. Also included is a single Wave Dashboard that allows a warehouse manager to view wave status and drill down to detailed line or task status. The exception engine can be configured for specific business case to proactively look for exceptions such that corrective action can be taken. For example, a severe exception can be triggered if 80% of the lines in a wave are not loaded to the trailer 30 minutes prior to dock appointment end time.

We will follow-up with more detailed postings on these and other 12.1 features. As always stay tuned. These are exciting times to be in WMS world!

Case picking at high volume can be a big challenge for many warehouse managers. First, shipping label must be affixed to each case due to compliance needs. Second, each shipping label must match the record on ASN. Last but not least, operator needs to pick, label, and confirm one case at a time, which is a cumbersome process.

Let’s say your warehouse operator needs to pick 100 cases of the same item. Under the current setup, one must affix label on a case, enter pick information, scan label and then confirm. The process is efficient for a single item/case pick, but it is a time-consuming process to repeat 100 times.

Here’s a better solution:

High Volume Case Picking feature in 12.1 allows the operator to affix all of the labels at once onto the 100 cases. Since the source and destination are the same for all 100 cases, the operator enters the information only once. In a single task window, an operator is asked to scan all 100 cases, one after another. Once complete, the operator confirms once for all 100 case picks and drops the picked items to a pallet or conveyor. In essence, 12.1 High Volume Case Picking feature speeds up the outbound processing by eliminating the need to enter any duplicate information. This feature is a small improvement over the current implementation, but can potentially be a huge impact for customers with high volume picking need.

It is also worthwhile to point out that High Volume Case Picking feature is EAN-128(UCC-128) label compatible.