Warehouse Management

We are excited to share with you that Oracle announced the general availability of E-Business Suite Release 12.1 at OAUG Collaborate conference in Orlando.

This latest release of the Oracle E-Business Suite provides product enhancements across human resources, supply chain management, procurement, projects, master data management, customer relationship management and financials.

With the Oracle E-Business Suite Release 12.1, organizations can achieve rapid value today, as well as standardize and simplify their infrastructure and business processes for long-term results.

The Oracle E-Business Suite Release 12.1 also features industry specific features and solutions that help drive greater value across the enterprise. Industries with significant new functionality advancements include Wholesale Distribution, Public Sector, High Technology, Engineering & Construction, Life Sciences, Retail, Professional Services, Communications, Consumer Goods and Utilities.

This release is important for WMS as there are many powerful features available in this release. The main features for WMS are:

a. Forward Pick Area Replenishment: This includes demand driven "Pull" and "Push" replenishment to a pick area from reserve or bulk area.
b. High Volume Case Picking: Ability to generate case labels and perform picking and labeling of multiple cases using a single task. Cases can be picked and loaded to conveyor (Pick To Belt) or picked on to a pallet (Pick to Pallet).
c. Flexible Cartonization: Enables "Pick and pass" and "Zone Picking" directly into shipping cartons.
d. Cluster pick using labels: Enables cluster pick or batch pick of multiple orders directly into pre-labeled shipping cartons.
e. Load Sequencing and Dock door appointment synchronization: Leverage transportation planning and carrier appointment in Oracle Transportation Management (OTM) to plan execution in WMS. Ensure that material is staged to the right dock door at the right time.

There are many more features in this release. A complete list of features in this release is available in the R12.1 Release Content Document.

We will be doing a series of blog posts for each of these features in the next few weeks. Stay tuned!

Many of you are already familiar with the concept of cartonization, but for completeness we will review the basic concepts before diving into the new features.

So, what is cartonization?

Simply put, it is a process by which WMS suggests a container with a LPN for picking one or more items. If the container is a shipping container, warehouse operators can combine the “picking” and “packing” steps into one. Done this way, cartonization in effect removes the need for a packing station, and speeds up the overall outbound process. It works by allowing the operator to pick up the proper shipping container prior to picking (size calculated based on picks) and assign a shipping label to the container. The operator then scans the LPN on shipping label and proceeds to pick directly into the shipping container. Once complete, the carton can be directly dropped in the staging lane for shipping. It is a useful feature commonly used by R12 WMS customers today.

And what is new?

What sets 12.1 flexible cartonization apart from its predecessor is its flexibility and customizability. One of the features is the ability to specify Cartonization Rules using rules Workbench:

Rules Workbench(1) is a familiar tool for many to manage all rules related to Pick, Put Away, Cost Group, and Crossdock. Cartonization is now added to the Rules Workbench as a central location to manage all the cartonization related setup.

Using this workbench, warehouses can easily commission (2), prioritize(3), and schedule(6) any cartonization requirements. Cartonization setup allows for customized strategies(4), and as an added feature it can be assigned down to a particular subinventory(5).

Cartonization can be done using one of the following algorithms:

1. Single Item Cartonization: This uses the container load relationship to cartonize. This is ideal when standard quantities of a single item are packed into a container.
2. Mixed Item Cartonization: This algorithm uses contained item and container item categories to pack one or more items into a container. Weight, volume and dimensions are considered to suggest container.
3. Pick Slip Grouping: This is a new cartonization algorithm in R12.1 that creates a carton for the entire pick slip grouping e.g. if pick slip grouping is defined for zone pick, it creates a cartonized container for all picks coming from a zone. By configuring pick slip grouping, warehouses can effectively use pick and pass, zone picking and cluster picking with cartonization.
4. Customer Specific Algorithm: This can be used to define any site specific algorithm using a PL/SQL stub API.

As shown in the screenshot above, cartonization is only enabled under the EACH subinventory using the “Pick Slip Grouping Rule”, while rests of the subinventories are unaffected. This ability provides great flexibility to the warehouse with special outbound needs.

Another added improvement allows the use of cartonization in parallel with cluster pick by label. It is now possible to “Pick and Pass” or “Zone Pick” directly into shipping containers. We will talk in details about this feature in a later post.

Last but not least, cartonization can also generate GS1-128(UCC-128) compatible shipping labels. This is a common usage scenario in a number of warehouses.

Questions? Comments? We would love to hear from you, please drop us a line.

Continuing with our previous discussion on “Flexible Cartonization”, let’s talk about a new feature in release 12.1 called “Cluster Pick by Label”. Cluster pick by label is a feature that allows large warehouses to combine multiple orders and intelligently distribute it among multiple operators.

Let’s take the following scenario for example.

Three picks are ordered in a large warehouse shown in the figure above. The three picks are randomly scattered around the warehouse as denoted by colored dots. If an operator is commissioned for each pick order, in total these three picks would require three full trips around the warehouse. A better picking strategy is to divide the warehouse into three smaller pick zones as shown below, and allow the operators to pick the three orders simultaneously.

Here’s how Cluster Pick by Label is currently implemented in 12.1. Using the flexible cartonization feature, WMS can suggest a pick container as well as generate the shipping label for it. The operator first scans all three shipping labels and proceeds to pick up the proper shipping containers as suggested by the system. WMS intelligently combines the three orders and orders picks for items nearest to the operator. The operator proceeds to pick and confirm items as suggested. At any time, the operator can stop the picking process and pass on the pick slips to the next operator. Each operator repeats the same process of scan, pick, and pass to other operators until the shipping containers reach the end of the line in staging or all pick orders are finished. The last operator is responsible to pack and deliver the container to staging area to complete the process.

There are many benefits to using Cluster Pick by Label, namely
- Eliminate wasted travel time
- Shorten total travel distance from three full rounds into one
- Alleviate machine handling equipments(MHE) and other traffic congestion
- Allow operators to specialize in a particular zone

Cluster Pick by Label feature is a classic example of sum of the efforts being greater than its individual parts.

For the advanced user of Cluster Pick by Label, it is now possible to commission bucket brigade to create a self-labor-balancing warehouse. Please follow the link to read the great article from John Bartholdi of Georgia Tech on this topic.

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.

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!

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)

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)

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.

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