Warehouse Management Systems, And the Small to Midsize Company

A CEI Logistics Presentation

INTRODUCTION

Joe W. Jackson CEI Logistics Senior Consultant 16 Years Experience in DC Systems Integration Multiple Small to Medium Company WMS Implementations

REASONS FORTUNE 500 COMPANIES IMPLEMENT WMS

Inventory Control Cycle Time Reduction Order Accuracy Labor Productivity Real-Time Information About DC Performance
SOUND FAMILIAR?

REGARDLESS OF YOUR COMPANY SIZE WHAT YOU REALLY WANT IS:

CONTROL

CONTROL OPTIONS

Locator System Transaction Processor Inventory Control System

Warehouse Management System

ERP System

HOW DO YOU DETERMINE IF A WMS IS RIGHT FOR YOUR OPERATION

Operational Assessment/Business Case

R.O.I. Competitive Advantage Long Term Profitability Industry Pressure Customer Compliance

RESOURCES REQUIRED TO IMPLEMENT A WMS

Project Team
Executive Operations Warehouse Corporate IS Inventory Control Customer Service Vendor Application Team Corporate Product Owner Time Committed Project Manager

Systems Requirement Document (SRD)

HOW DO YOU MANAGE ALL THESE RESOURCES?

IMPLEMENTATION PARTNERA PROVEN CONCEPT

Implementation Partner
Time Dedicated Resource Experienced In WMS Implementation Supplements The Companys Project Team Project Focused Impartial Perspective Of All Project Phases

FOUR PHASE APPROACH TO SUCCESS

Phase One - Operations Assessment Phase Two - Vendor Selection Phase Three - Development/Configuration Phase Four - Implementation

PHASE 0NE OPERATIONS ASSESSMENT

Process Maps
- Document current processes - Identify opportunities for improvement

Activity Profiling
- Capture peak transaction volumes by functional area

- Interview key stake holders to develop vision of future requirements - Project activity over planning horizon to create design database

Future Business Requirement

- Develop to-be process maps to define future operations - Identify IT functionality required to support future processes

IT Gap Analysis

- Compare desired to be functionality to existing system functionality - Document gaps in current system

New System Justification

- Define recommended solution based on gaps identified

- Develop business case for new system / system enhancements as appropriate

MOVE TO PHASE TWO?

PHASE TWO VENDOR SELECTION

Develop Functional Specification

- The information gathered in the Assessment Phase is developed into an application specification

Vendor Pre-Qualification
- Vendors are pre-qualified based on their experience, capabilities, and project capacity

Bid Process
- The formal Functional Specification is extended to the qualified vendor list for costing

Evaluation Matrix
- All vendor offerings are evaluated on the established criteria, and a recommended supplier selected

Vendor Selected
- A contract is offered to the prevailing supplier. This is the beginning of the Phase - 3 activity (Software Development)

PHASE THREE DEVELOPMENT / CONFIGURATION

Systems Requirement Document

- The Systems Requirement Document (SRD) defines the complete software solution deliverable including client and supplier obligations The Functional Specification is the reference document for this activity

Master Schedule
- The final element of the SRD is the project Master Schedule. This includes all mission critical milestones, and dates for required deliverables

Application Configuration / Development

- The advocate manages software vendor with regard to final functionality and required modifications

Site Preparedness Audit

- Formal activity to insure both vendor and client are prepared for installation and testing

PHASE FOUR IMPLEMENTATION

Site Coordination
- Actual on-site installation and testing of solution

Installation
Project Management Application Training
- On-Site training of the user group

System Acceptance Testing

- Solution is tested thoroughly for both functionality and reliability, based on an established test plan

On - Going System Evaluation

- Through annual check-ups and discovered opportunities for improvement, the assures a solution that maintains its usefulness through several years of business cycles

REMEMBER

Do Not Automate Bad Processes Focus On The Project, Not The Product With A WMS, Weigh Conformance Against Customization Its the complexity, not the size of the operation that matters WMS Can Be Deployed In Almost Any Firm, Regardless Of Size

FOUR PHASE ROAD MAP

Phase 1 - LIS Assessment Process Maps Activity Profiling Future Business Requirement IT Gap Analysis New System Justification

Phase 2 - Vendor Selection Functional Specification Document Vendor Pre -Qualification Bid Process Management Evaluation Matrix Contract Awarded

Phase 3 - Software Development Systems Requirement Document Master Schedule Software Development Support Site Preparedness Audit

Implementation Partner Client Advocacy CEI Logistics Client Advocacy

Phase 4 - Implementation Services Site Coordination, Installation And Project Management

Application Training

System Acceptance Testing

On -Going System Evaluation

Implementation Partner & User

Vendor

Questions ?