dwms implementation case study 3pl

Oracle R12 dWMS

Implementation

Success Story for Implementing

Oracle R12 Distributed WMS

Dale Welsh, Ron Wind

August, 2010

MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners. © 2010 Motorola, Inc. All rights reserved.

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Introduction

Evaluation

Process to define and deliver dWMS

Implementation

Infrastructure Implementation

Implementation Road Map

Benefits of dWMS

Questions

Agenda


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Motorola Solutions is a global communications

leader providing next-generation mobile

communication solutions. A few products in our

portfolio include, two-way radios, mobile computers,

secure public safety systems, barcode scanning

and wireless network infrastructure to enterprises

and governments.

Motorola has a global footprint with manufacturing

and fulfillment facilities in the United States, Mexico,

Brazil, Central Europe, Malaysia, and Israel. As we

are trying to rebuild our supply chain systems

footprint and because our operations footprint is

global, it makes the concept of a distributed WMS

all the more relevant.

Introduction

• In 2009 Motorola decided to cease the outsourcing of the Schaumburg warehousing

operations and return it back to in house. Since 2005 the warehousing operations

that support the Schaumburg, IL manufacturing site had been outsourced to a 3PL.

With the decision to no longer outsource warehousing operations, the need for a

WMS system became evident.

Outsourced operations to Third Party Logistics provider

• Performed Receiving, Putaway, Replenishment, Picking and Cycle

Counting in proprietary warehouse management system.

• Integrated with Motorola 11.5.8 ERP

Decision to in source operations based in internal cost savings

• Focus on top tier WMS solution versus custom one off

• Fit within the long term strategic design and architecture

Project Background


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Upgrade Oracle 11.5.8 ERP to 11.5.10

• Use WMS module in the 11.5.10 EBS

• Other regions had already upgraded to 11.5.10

• 11.5.8 had many extensions and enhancements to consider in regression testing

• Concern upgrade would take longer than original project timeline

Configure WMS module in the 11.5.8 instance

• Several point releases old

• Significant patching required and impact to other schemas

• Reduced functionality as compared to R12.1.2

Implement 3rd party WMS package

• Step away in long term strategic direction

• Software and licensing costs

• Increase support costs

Evaluation


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Implement Oracle R12.1.2 Distributed Warehouse Management System (dWMS)

After evaluating all four options the decision to implement dWMS was best based on the following key points:

• Host ERP will still be on 11.5.8

• dWMS fits into long term strategy

• Ability to leveraged existing internal and external

• resources familiar with Oracle WMS

• Licensing costs covered with existing 11.5.10 WMS implementation in EMEA

• Decoupled from ERP, no dependency on 11.5.8 patching and maintenance

• Quick to deploy with full WMS functionality

Weighing all the aforementioned key points, the selection of Oracle dWMSwas the right choice for Motorola.

Evaluation


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Leverage EMEA Oracle WMS Implementation

Although EMEA WMS was considerably different the team analyzed what could

be leveraged from EMEA in terms of design, setup and configuration, and

conversion code reuse.

• Fully defined customer requirements

• Conducted several structured workshops

• Very experienced in warehousing operations

• Bring in lessons learned from EMEA

Process to Define and Delivery R12 dWMS


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Stay Standard Oracle

• Standard Oracle met requirements

• Understand new features in R12.1.2

• ODI provides advantages with pre-built maps

• Understand how dWMS is different than WMS

using Oracle standard interfaces

• dWMS white papers from Oracle were valuable aids



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Conversion

The section will list the conversion data that was required from 11i and from the former 3PL

legacy WMS.

• Open PO’s in 11i

• All Suppliers in 11i

• All Items in 11i (excluding phantoms, options, option class)

• Item Categories 11i

• Item costs (for cycle count ABC only, no Financial) in11i

• Warehouse Locators

• Locator max capacity from 3PL

• Min/Max values from 3PL for home slot items

• On hand values from 3PL

• Sub inventory creation



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Interfaces

This section will list the interfaces that were created between 11i and the dWMS system.

Informatica Power Center was the approved ETL tool and therefore new maps where required

for this project.

• PO new, change, includes an inspection DFF flag (11i to R12)

• PO Receipts (R12 to 11i)

• Item New, Change (11i to R12)

• Subinventory Transfers

• WIP picks in 11i (11i to R12)

• Ship Confirm (R12 to 11i)

• Return to Stock (R12 to 11i)

• New Suppliers (11i to R12)



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Aggressive Schedule, but Skilled Resources

• Oracle Data Integrator (ODI) evaluation

• Recommend approach by Oracle, with provided “Maps” for integration

• No in house expertise

• Resistance

• Informatica Power Center selected

• Existing Integration Challenges

• Previous Integration between 3PL WMS and Oracle 11i

• Custom application acting as part ETL-forced to retain

• Retain file format

• Used open interfaces with staging table approach

• Five month implementation

• Tight schedule- condensed system integration testing and UAT

• Skilled resources leveraged

• Functionality that met all business requirements

Implementation


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Once deployed operations quickly began to realize the systems capabilities and

rapidly began to ramp to normal operating transactional volumes.

The following graph illustrates the ramp up for sales order picks. Within 3 full days of

application use, operations were just slightly below the target MFG picking goal.

Deployment Ramp


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The next graph illustrates how operations were to ramp to the target pick volumes in

just 7 days from actually go live. Ramping to this volume with the previous 3PL and

WMS system took over a month to accomplish.

Post Deployment Ramp

Daily WMS Activity

GMT Day

0500

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/Rc

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Pick/drop MFG

Warehouse/Rcpt

Total Sch

MFG Goal


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Deployment Ramp

This last graph illustrates how operations ramped with Oracle WMS compared to a previous

experience with a custom WMS application utilizing an outsourced 3PL

Daily WMS Activity

vs 3PL Logistic ramp

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3PL Ramp

Operation's comments:- 3PL startup was difficult, nearly zero week 1.

- R12 dWMS in the first week = 3PL first month.

- 3PL used a lot of OT to keep up (historically)

Operations doesnt use much OT even now.

f


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The Schaumburg, IL warehouse - 24 x 5 operation

Need solution that would be scalable, provide high availability, and fit within the

Motorola architecture framework

Selected low cost Sun solution using Oracle Enterprise Linux on x86-64 servers

First implementation for Motorola in using a smaller, yet robust Linux solution.

Infrastructure Design and Implementation

• Linux x86-64 OS platform.

• Sun Green Server X4170.

• 2 x 2 architecture design.

• Load balancing for application and using hardware load balancer

and database server using Oracle RAC.

• Oracle 11g RAC with 11g Grid (ASM and Oracle Clusterware)

• Warm standby DR site with Oracle data guard and Rsync for DB and

file replication respectively.

• SAN Raid 5 for business data, and internal disks for OS binary

and temp files.

The advantage of this architecture solution is providing for high availability (no

single point of failure), both application and database layers are load balanced

to fully utilize the hardware and incremental capacity can be added with no

downtime.


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Infrastructure Design and Implementation


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Prior to the dWMS Implementation there was only one region leveraging the

capabilities of Oracle WMS.

Motorola’s Alsdorf, Germany facility running Oracle 11.5.10 with integrated Oracle WMS.

Other regions using 3PL WMS solutions, home grown, or 3rd party solutions

Prior implementation of Oracle WMS in EMEA provided the Motorola IT staff the necessary

experience to implement R12 Oracle dWMS under an aggressive time line.

The implementation of the R12 dWMS in Schaumburg, IL has provided Motorola

the first successful install of a distributed Oracle Warehouse Management System,

as well as provided the initial footprint of an implementation road map to get all

other regions on R12 dWMS.

Implementation Road Map


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Tel Aviv,

Isreal

Schaumburg, ILBerlin, Germany

Alsdorf, Germany

Penang, Malaysia

McAllen, TX

11.5.8 ERP

11.5.10 ERP/wWMS

11.5.10 ERP

11.5.10 ERPSAP

EBS and WMS Architecture Prior to dWMS Implementation


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Tel Aviv,

Isreal


Alsdorf, Germany

Penang, Malaysia

McAllen, TX

11.5.8 ERP

11.5.10 ERP/wWMS

11.5.10 ERP

11.5.10 ERPSAP

EBS and WMS Architecture Post dWMS Implementation

R12

dWMS


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EBS and WMS Architecture- Future End State

Tel Aviv,

Isreal


Alsdorf, Germany

Penang, Malaysia

McAllen, TX

Consolidated

R12 ERPR12 dWMS

R12 dWMS

R12 dWMS

R12

dWMS

R12 dWMS

Integration

Layer


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Benefits of dWMS-IT View

Decoupled form ERP, which allows for periodic maintenance on the

host, while the dWMS is fully operational

Regional installation approach with the application, database, and

MWA server residing in close proximity to the warehouse/factory

reduced the concern of data latency

Patching or future upgrades to the software require localized dWMS

regression testing only

Low Cost, quick deployment, maintain Oracle footprint

The rollout of dWMS to other regional sites provides greater flexibility

in deployment options as there are no dependencies on the host R12

system. This flexibility will provide Motorola a faster return on

investment and greater internal customer satisfaction and allow

replicated deliveries in other manufacturing and warehouse centers.

Summary


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Benefits of dWMS- “Comments from Operations”

Transfer of material from location to location is significantly faster. By

not having pick levels (Previous 3PL had material stored as Pallet,

Carton, Case and unit). They had to change the pick level of the

material if moving from pallet to unit. They could only move 1 level at

a time.

Transaction efficiency -Receiving is done with a hand held. Previous

3PL received all via desktop computer

Shipping is simpler as only 1 screen and transaction required. Use of

Quick Ship by delivery id simplified ship confirm process

Picking cycle time has increased by 20%. The picking process in

dWMS is faster and has reduced the need for personnel overtime.

Summary


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Lessons Learned

dWMS has unique data interface needs from the Host ERP. Separate

that Dependency from WMS functions and activities. .

dWMS has a great benefit in decoupling patch set and other functionality

from OM ERP’s.

Purchasing (PO) status should be managed (open/closed/reopen)

Consider using 3rd party packages, such as Optio or Loftware for

document bar codes, page breaks, sorts, and text location/format.

Wireless Mobile application performance focus is key to user success.

Schedule a re-boot of WMA daily to clear any active user tasks.

WMS is easily extendible and will require understanding of Oracle data

objects.

dWMS activity monitoring via MTL table referenced flags.

Oracle failover and DR architecture deployed for dWMS is rather new to

Motorola. To reduce complexity deployed same architecture as

production

A strong post go-live team is essential for the subtle issues encountered.

The DBA will be very active for the first 3 months monitoring table usage

and system capacity as it will all be new.


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Questions ?


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dwms implementation case study 3pl

Documents

motorola solutions

wms system

operations footprint

outsourced operations

us patent trademark

service names

respective owners

source operations