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Warehouse Management Systems,And the Small to Midsize Company
A CEI Logistics Presentation
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Joe W. Jackson
CEI Logistics Senior Consultant
16 Years Experience in DC Systems Integration
Multiple Small to Medium Company WMS Implementations
INTRODUCTION
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Inventory Control
Cycle Time Reduction
Order Accuracy
Labor Productivity
Real-Time Information About DC Performance
…SOUND FAMILIAR?
REASONS FORTUNE 500 COMPANIES IMPLEMENT WMS…
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CONTROL
REGARDLESS OF YOUR COMPANY SIZE WHAT YOU REALLY WANT IS:
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Locator System
Transaction Processor
Inventory Control System
Warehouse Management System
ERP System
CONTROL OPTIONS…
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Operational Assessment/Business Case
– R.O.I.
– Competitive Advantage
– Long Term Profitability
–
Industry Pressure
– Customer Compliance
HOW DO YOU DETERMINE IF A WMS IS RIGHT FOR YOUR OPERATION…
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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?
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Implementation Partner
– Time Dedicated Resource
– Experienced In WMS Implementation
– Supplements The Company’s Project Team
–Project Focused
– Impartial Perspective Of All Project Phases
IMPLEMENTATION PARTNER…A PROVEN CONCEPT
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FOUR PHASE APPROACH TO SUCCESS
Phase One - Operations Assessment
Phase Two - Vendor Selection
Phase Three - Development/Configuration
Phase Four - Implementation
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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?
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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)
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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
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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 it’s usefulness
through several years of business cycles
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REMEMBER…
Do Not Automate “Bad” Processes
Focus On The Project , Not The Product
With A WMS, Weigh Conformance Against Customization
It’s the complexity, not the size of the operation that matters
WMS Can Be Deployed In Almost Any Firm, Regardless Of Size
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FOUR PHASE ROAD MAP…
IT Gap Analysis
Vendor
Pre - Qualification
Systems Requirement
Document
Activity
Profiling Process Maps
Master
Schedule
Site Coordination, Installation And
Project Management System
Acceptance Testing
Site
Preparedness Audit
Application Training
Functional
Specification Document
On - Going
System Evaluation
Phase 1 - LIS Assessment
Phase 3 - Software Development
Phase 4 - Implementation Services
Phase 2 - Vendor Selection
CEI Logistics’ Client Advocacy
New System Justification
Bid Process Management Contract
Awarded Evaluation
Matrix
Software Development
Support
Future Business Requirement IT Gap
Analysis
Vendor
Pre - Qualification
Systems Requirement
Document
Activity
Profiling Process Maps
Master
Schedule
Site Coordination, Installation And
Project Management System
Acceptance Testing
Site
Preparedness Audit
Application Training
Functional
Specification Document
On - Going
System Evaluation
Phase 1 - LIS Assessment
Phase 3 - Software Development
Phase 4 - Implementation Services
Phase 2 - Vendor Selection
Implementation Partner Client Advocacy
New System Justification
Bid Process Management Contract
Awarded Evaluation
Matrix
Software Development
Support
Future Business Requirement
Implementation Partner & User Vendor
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Questions ?