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Warehouse ManagementImproves utilization of your warehouse personnel andequipment

Movex Supply Chain Execution

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Movex Warehouse Activity ControlImproves utilization of your warehouse personnel and equipment

Movex Warehouse Activity Control (WAC) addresses all activities required inside ware-houses and distribution centers. It offers best-of-breed functionality that speeds up theflow of goods, from goods receipt to shipping. Cost efficiency and customer service isthereby improved.

New technology and tighter supply chain collaboration have reduced uncertainty inboth demand and supply. The result in most industries is shorter lead times andimproved stock turnover rates. Consequently, we can see increasing pressure on per-formance in all warehouse operations. Efficient tools for planning and execution havetherefore become a matter of necessity.

Movex Warehouse Activity Control provides the tools you need to run your warehouseoperations with greater success. Tools such as the task manager ensure the most effi-cient utilization of warehouse personnel and equipment. Fully configurable work flowsgive greater accuracy and precision in all vital processes. In goods receipt and put away,operations such as container management, sampling tests, intelligent location selectionand cross-dock routings can be set up individually for any product and supply channel.

Powerful utilities support storage area classification, which is fundamental for all activityrouting such as location replenishment and returns handling. Advanced wave dispatchfacilities handle the entire outbound flow, from picking and packing to docking. MovexWAC also integrates with bar code equipment and other data collection devices. Byusing consolidated wave line reporting facilities, it provides the ultimate support forradio frequency truck terminals.

Movex Warehouse Activity Control brings increased speed and quality to your supplychain, and the result is reduced cost and improved delivery precision and credibility.

What Is Movex Warehouse Activity Control?Demand uncertainty is decreasing dramatically as supply chain collaboration evolves.This is primarily due to the availability of considerable information on buying behaviorand market trends. Combined with significantly improved supplier reliability, the reduc-tion in demand uncertainty also increases the potential for major improvements in stockturnover and lead time reduction. Consequently, planning and execution of all ware-house operations has to be continuously improved.As warehouse transactions increasein speed and number, sufficient tools to handle these operations have become impor-tant prerequisites to success.

Movex Warehouse Activity Control (WAC) addresses all activities required inside yourwarehouses and distribution centers, and provides best-of-breed functionality thatspeeds up the flow of goods from receipt to shipping. Movex WAC thus contributes toimproved cost efficiency and customer service.

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Features

Overall inventory structure

Company

Facility

Division DivisionDivision

Facility Facility Facility

Whse Whse Whse Whse

Stock Zone

Location

Stock Zone

Location

Stock Zone

Location

Stock Zone

Location

When running large warehouses with diversified operations and complex zoning,demands for sophisticated area classification capabilities are always high. Movex WACsupports multilevel inventory structures including stock zones, location types and con-tainers. These features are important conditions for all warehouse operations, such asquality inspection, cross-docking and picking area replenishment. Horizontal classificationcapabilities, such as the location type that may control valid combinations of productsand placing, are also available.

FacilityThe highest level in the inventory structure is the facility, which is defined as the facto-ry, sales office or similar location.The item/facility combination specifies controlling infor-mation for accounting, pricing, costing and manufacturing purposes. Since it is a planninglevel, the item/facility combination may carry consolidated on-hand balances for under-lying warehouses.

WarehouseThe warehouse is mainly used for keeping inventory. Besides geographical information,Movex Warehouse Master carries information such as:

• Time fences for goods allocation

• Cross-docking rules and time fences

• Options for interface to other warehouse management systems (WMS)

• Store information for warehouses with points of sale.

Stock zonesThe stock zone level is intended for division and classification of your inside warehousestock areas.The settings for each stock zone are used for controlling the various ware-

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house operations, such as finding locations for put-away and for picking optimization andmanagement.

Some examples include:

• Volume and weight balances to avoid overstocking of racks and shelves at put-away

• Rack coordinate-based information for weight check controlled put-away locationassignment

• Fill rate balance to support put-away location assignment

• Sorting criteria for picking within the locations belonging to the zone

• Printer assignment

• Default picking team.

LocationsA location is a specific definition of a position, shelf number or other storage area with-in a stock zone.The Location Master carries information such as:

• Location type, such as pick, storage, bulk, buffer, pallet

• Stock zone

• Weight and volume capacity for control and utilization overview

• Maximum allowed fill rate for control and utilization overview

• Special equipment requirements for put-away and issues

• Allocation availability status

• Single item and single lot restrictions

• ABC classification for issue frequency.

The way the locations are set up have impact on all warehouse activities, such as put-away, allocation, picking, cross-docking and location replenishment.To avoid shelf over-stocking for example, the location can have a maximum weight, volume or utilizationrate specified. During put-away, these values will be checked against the current trans-action to avoid potential overload. Periodical location statistics based on the number ofstock receipts and issue transactions are updated continuously.

Item managementMovex WAC item management is divided into three logical levels following the inven-tory structure.

Item masterThe item number is the unique identification of each stockkeeping unit (SKU).The ItemMaster contains the basic and warehouse-independent classifications and characteristicsfor all items, stocked as well as non stocked. Items can be grouped and classified in manyways, such as by:

• Item type

• Item group

• Item class

• Item category

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• Product group

• Hierarchy level (five available)

• Search group.

In addition to materials and regular consumption items, the Item Master contains allother item categories, such as tools and reparable or reusable components. Each itemis status controlled, as well as revision controlled when needed, during its lifecycle.

The hierarchy levels and search groups are examples of classifications intended for itemsearch and statistics.These levels can also be used to group items in a logical way thatreflects a company's business, such as commercial agreement assignment and marketdifferentiated assortments/trade embargoes.

Alternate unit of measureAn item's quantity and price information may be interpreted and expressed in anyappropriate unit of measure (U/M).A balance accounting unit, also called the basic U/M,is mandatory. In addition, you can have your items managed in alternate U/Ms for otherpurposes such as purchasing, manufacturing, sales and pricing.The conversion from andto the basic U/M is controlled by multiplication or division factors.

Number of decimalsThe number of decimal places sufficient for balance expression will vary for many rea-sons, such as a product's specific weight, unit price or common packaging.Two exam-ples are gold and cigarettes, which have quite different requirements for measuring andpackaging. In Movex WAC, item and unit of measure individually control the decimalrepresentation.

Names and descriptionsYou can name and describe your items in any number of languages to facilitate com-munication between yourself and your customers, vendors and other business col-leagues.

Item/warehouse levelItems carry specific settings and balance information for each warehouse to which theyare assigned. Hence, each item can be handled and replenished differently within eachwarehouse.

SettingsExamples of settings are:

• Acquisition mode (manufacture, purchase or get from other warehouse)

• Planning method (manual, via Material Requirements Planning (MRP), via reorderpoint, or order initiated)

• Lead times

• Time fences for planning, safety stock and demand

• Forecast logic and methods

• Safety stock, reorder points, order quantities, and methods for auto calculation ofthose values

• ABC classifications based on frequency, contribution margin and volume value

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• Methods for storage, container management and allocation

• Normal put away locations

• VAT rules.

Balance informationAny affected balance information is updated in real time when performing stock trans-actions and reservations. Examples are:

• On-hand approved

• On-hand not approved

• On-hand rejected

• On order

• Reserved: totally and on backorder

• Available to promise for new orders

• Gross available for allocation

• Allocated

• Net available for allocation.

Item/facility levelThe facility level in Movex WAC is considered as the consolidating level for one or morewarehouses belonging to the same planning level, business unit, area or country.Accordingly, item-related data for accounting, pricing, costing and manufacturing pur-poses are stored and differentiated by facility.The on-hand balance for underlying ware-houses can also be consolidated on this level.

Examples are:

• Customs statistical number

• Ordering cost

• Required sales contribution margin ratio

• Inventory accounting method (standard cost, average cost, actual cost per lot number)

• Costing models for dynamic cost calculation (manufacturing, purchase and sales).

Item creationTo facilitate a simple and efficient way of creating and maintaining items and relatedcomponents, Movex WAC utilizes an item type level to control each item's lifecyclefrom creation to deletion. Significant business logic is controlled by item type, such as:

• Retrieval of item number automatically from predefined numbering rules

• Invalid characters list in item numbering

• Filter-controlled item information views

• Template-based retrieval of default values during item creation

• Automated alias number generation, such as EAN and UPC, during item creation

• Automated generation of warehouse and facility assignments when creating newitems

• Automated generation of SKUs based on a style

• Filing and deletion.

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Related itemsA common requirement in product data management is the handling of item replace-ments and interchangeable products. Movex WAC supports:

• Replacement through a general item number change

• Entire replacement (the replaced item is inactivated)

• Replacement when current on-hand balance is consumed

• One-way interchangeable items

• Completely interchangeable items.

Alias numbersThere are situations where identities other than item numbers are used to identify anitem. For this purpose, different alias numbers can be set for the same item number andused for inquires or for entering order lines.The various alias numbers are grouped byalias category, such as:

• Popular numbers used for free groupings of items: nicknames, predefined orderforms and so on

• Assortment identity

• EAN or UPC numbers

• Manufacturer's item number

• Customer's item number.

Movex WAC enables rule-based automatic and efficient alias creation.

Item inquiries

Movex WAC offers efficient tools for searching and displaying item information. Datafrom all item levels can be consolidated and displayed in one function.Among the tools'features you will find user-defined panel layouts and database views to optimize eachitem inquiry. Filter functions are available in real time to limit the number of items dis-played.

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Enabling technology integration

Item data

Expected receipts

Picking lists M

O

V

E

XReceipt & picking list report transactions

WAREHOUSE

SYSTEM

Inventory transactions

In complex and intensive warehouse environments, bar coding and the use of portabledevices, such as radio frequency terminals and handheld equipment, are prerequisitesfor the fast and safe execution of stock activities. Errors are detected on location andcan be corrected immediately. A non paper-based workflow ensures ever currentinformation, giving increased flexibility and quality as a result. Other technology thatbrings speed and reliability to warehouse operations includes automated equipmentsuch as robots and paternoster storage systems. Each warehouse definition controlshow Movex WAC integrates with various warehouse environments.

Goods receptionInbound goods come in many different forms.You could be receiving anything from ashipping container to a box of pencils. Different industries and companies ship with dif-ferent labeling and documentation. Consequently, Movex WAC enables you to receivegoods using a wide range of identifiers.These include receipt by:

• Item code

• Delivery number

• Shipment number

• Schedule number

• SSCC Id, Serial Shipment Container Code. European Article Numbering (EAN)128 (SSCCID/EAN128) license plate number

• Internal package number

• Order and line number.

Information is captured and/or calculated at the time of receipt according to therequirements for the item including:

• Batch/lot number

• Catch weight

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• Potency

• Expiration, last sales and reinspection dates

• Country of origin

• Item attributes, such as product grade and dye lot.

Quality inspection is integrated with the receiving process and includes functionality forquality plans. Put-away labels are produced when required.

Cross-dockingCross-docking is a central function of supply chain execution, particularly in fast movingconsumer goods, make-to-order and buy-to-order environments. Goods are often pro-cured and labeled especially for a specific customer.These receipts may be planned forput-away in cross-dock location areas where they can be shipped out as soon as pos-sible. Movex WAC can also look for ad hoc cross-docking opportunities within a spec-ified time fence. For a specific item, there may be several different demands waiting tobe completed.When the stock being received into the warehouse is required within ashort amount of time, instead of putting that stock into the normal location, MovexWAC automatically suggests diverting it to one or several cross-dock locations.

Defining how the cross-dock location is selected can be as sophisticated or as simple asyour business requires. Locations are selected from any of four levels:

• One common cross-dock location

• Specific location for item/warehouse, such as items requiring special handling orstorage

• Location according to the loading platform for the shipment

• User-defined selection rules using demand order, transport planning, consignee anditem related data.

System directed put-awayTo increase the efficiency inside the warehouse, Movex WAC automatically suggestswhich locations to use for cross-dock or put-away whenever goods receipts are to bereported. Besides stock zone, location type, crane or corridor, Movex WAC offers manydifferent variables to control suggested locations, such as:

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• Matching of item frequency ABC classification with location ABC classification

• Fixed, preferred reserve and dynamic locations

• Quantity controlled location type selection, such as pallet-to-pallet locations andsplits to pick-face

• Zone, aisle and level balancing; that is, distribution of location usage acrosszone/aisle/level.

Movex WAC offers printouts of put-away labels.

Recyclable packaging managementIncreasing global concern for the environment, together with the endless pursuit of costsavings throughout the supply chain, is driving the need for management of recyclablepackaging in many businesses.Whether you need to track your company's use of recy-clable packaging, or you need to track who is holding your recyclable containers, MovexWAC can help.

The handling of recyclable packaging is tightly integrated into the dispatch and receivingflows of Movex WAC.This makes it easy to avoid unexpected invoices from the equip-ment pool owner. It also gives you the opportunity to make your customers account-able for their usage of your recyclable packaging.

Location replenishmentHaving the right stock in the right place at the right time is important not only betweenwarehouses, but also within individual warehouses. For distribution companies, the mostcommon requirement for internal warehouse movements is support for bulk and pick-face functionality. Manufacturing companies require kanban support as well as simpletwo-bin solutions for high volume/low value components. Movex WAC supports:

• Manual, automatic and kanban replenishment systems

• Integration with acquisition support systems

• Replenishment from bulk

• Replenishment upon goods receipt, according to rule-based decision processes

• Replenishment of pick-face based on the requirements from a planned pickingwave.

Location movementsLocation movements inside a warehouse can have several causes, such as reconstruc-tion or preventive maintenance of racks or other equipment. Movex provides rules tomanage these movements, including moving:

• A single item from a specified location to a new location

• All items at the same location to one new location

• A container including one or several items

• A balance identity (item/location/lot).

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Dispatch handling

Large volumes and a great number of picking lists to be executed characterize distri-bution-intensive environments. Lack of planning capabilities can cause lost picking listsand stacks of unsorted picking lists, with time-consuming manual sorting and selectionas a result. Many companies consider replenishment of picking sites almost impossible.

Movex WAC dispatch handling can be configured to the requirements of your compa-ny, thus enabling you to achieve a smooth and efficient flow of goods out of the ware-house.You can choose which parts of the flow require manual intervention and underwhat circumstances.You can view and manage the data in a way that suites your com-pany or even your warehouse.

Delivery ordersPartial deliveries, backorders and order supplements are always menaces to dispatchefficiency. Full audit on planned deliveries is a prerequisite to optimum material planningand delivery precision.

Movex WAC keeps track of all planned deliveries automatically and performs consecu-tive reassembly and rescheduling whenever maintaining an order line. Each planneddelivery, which in Movex WAC is referred to as a delivery order, may contain severalorders as long as they are to be delivered to a common consignee on the same occa-sion. One of the advantages of Movex WAC is that all activities in the dispatch flow arecontrolled on this level.

Different criteria control the level of consolidation, such as:

• Consignee

• Address

• Requested departure date and time

• Delivery method

• Delivery terms.

Shipment ManagementTransportation planning

Delivery documents

Picking Resource PlanningPlanning of picking resources

Picking List ManagementPrint

Report picking & packing Corrections

Delivery ToolboxAllocation release Picking release

Shipment assembly Delivery documents

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Dispatch policyBeing configurable, the Movex WAC dispatch tools are designed to meet the require-ments of most industries. Each business case, down to the various transaction typeswithin a warehouse, can be described in detail by different sets of rules (so-called dis-patch policies).

Examples of some typical rules include:

• Enable single or multiple orders per delivery order

• Delivery orders released for allocation and/or picking

• Kind of allocation check before picking, such as all allocated or joint delivery checkon order lines

• Automatic credit check of customer orders before release for picking

• Picking resource planning used or not

• Time fence for automatic picking list creation

• Print picking lists automatically when released for picking or manually initiated

• How the lines on a picking list should be sorted

• When shipment assembly should be initiated

• Picking reporting restrictions, such as the possibility to manually over ship, undership and mark a picking list as finished

• Automatic picking reporting when picking lists are created with or without check-ing predefined order completion limits per consignee and item

• Packing reporting options and automation level

• Logging level for internal movements between pick, pack, and dock locations

• Type of automatic shipment connection at order entry for online transportationcapacity check

• Point for automatic connection of delivery documents.

Delivery toolboxThe Movex WAC delivery toolbox is the fully configurable cockpit for all dispatch plan-ning and execution. Offering both shortcuts and sequenced links to all dispatch relatedfunctions, it helps you streamline your entire dispatch workflow.

Among the actions you can take are:

• Multipurpose operations

• Release for order picking

• Release for wave picking

• Access packing

• Document creation

• Document release

• Shipment assembly and reassembly

• Delivery monitoring.

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Among the configuration features are:

• User-defined database views that make data selection both fast and flexible

• Panel versions that sort and present selected data in any order and layout

• Inquiry types that combine the database views and panel versions into work flows.

Whenever required and regardless of inquiry type, it is always possible to override thedata selection criteria and panel versions provided by the setup.

Picking listsThe delivery toolbox monitors all deliveries that meet the allocation criteria and releasetime fence.The toolbox allows you to release all or specific deliveries for picking, withor without automatic picking list printing.You can even customize the information dis-played to meet your special needs.

Several picking lists per deliveryOne single delivery may require several picking lists to be generated.This depends onrules controlled by stock zones and/or required equipment to perform the pick oper-ations.

Picking list sorting sequenceThe positions on the picking lists can be sorted in several ways, as controlled by the dis-patch policy, including:

• Fragility, transportation flow and location

• Transportation flow and location

• Item number and location

• Order, order line and location.

Delivery statusMovex WAC contains an option to show delivery status for both delivered and backo-rdered positions on the picking list, making it a combined picking list and delivery noteif necessary.

Picking resource management

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Movex WAC provides a tool for picking resource planning that is particularly useful inenvironments with high transaction volumes and no automated picking equipment. Bycombining default picking team/stock zone assignments and picking time estimates perproduct and location type, approximate picking time for each picking list is calculated.Pickers, picking sequence and printers may all be manually changed and thereby reas-signed to different resources.

Each picking list also carries statistical information, such as:

• Estimated picking time

• Estimated picking start date and time

• Actual print date and time

• Actual picking start date and time

• Closing date and time

• Original number of picking lines

• Number of picked lines

• Number of reported lines.

Picking reportingPicking reporting is a prerequisite for updating stock balance and accountings, forachieving correct information for customer invoicing, and for printing delivery docu-ments. Many companies, and transaction-intensive environments in particular, benefitfrom automating this step, thus avoiding errors and slowdowns.

Movex picking reporting supports different levels of automation including:

• Auto issue reporting of picking list when created, no manual operation required

• Report issues for complete picking list

• Single line deviation reporting followed by complete reporting of all other lines

• Report line by line

• Deviation reporting on line level and hold for update.

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Movements to pack and dock locations

Warehouse

Pick Area

Pack Area

Dock Area

Movements of goods between pick, pack and dock locations can be reflected in thestock transaction history file where these steps are explicitly reported. A pick line canbe split into several pack locations, and several pick lines can be consolidated into onepack or dock location.The default pack and dock locations can be individually assignedon the SKU level.

Packing reportingPacking reporting is a basis for creating packages with the proper information printedon delivery documents, and for being able to track packages after they have left thewarehouse.All packages created in Movex WAC will automatically be assigned a uniqueSSCC (Serial Shipment Container Code) EAN number.

Movex WAC supports both manual and automated packing reporting. Automatedreporting is based on a set of packing rules that indicate which package type to use andhow many items can be packed in the package.The rules can vary by combining itemclassifications with consignees and quantities to be packed.

Automated packing may be triggered by progress in the dispatch flow, as when report-ing movements from pick to pack locations. You can even manually issue automatedpacking whenever required.

Manual packing can be performed in three different ways:

• By packaging; that is, picking positions are specified per package

• By picking position; that is, packaging assignments are specified per picking position

• Packaging only; that is, no picking position assignment specification.

Manual packing can be performed either as a separate operation from picking or as asimultaneous pick and pack.

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Wave pickingDeliveries can be grouped together to optimize picking. Movex WAC supports wavepicking consolidation based on dynamic and user-defined selection criteria.Typical crite-ria might be route related, picking site related or even date and time related.Wave pick-ing lists may be printed as a complement to the picking lists, or as replacements. Eachline on a wave picking list represents one requested pick operation. As an option, eachline may be followed by a specification of how to distribute the line to several ordersinvolved in the wave.

Waves ready for picking can be administered and released in the Movex pickingresource planning routine. Resources such as picking teams, pickers and output devicescan all be reassigned at any time.

Wave line reportingMovex WAC also provides the ability to report performed picks on an aggregated level;that is, picking reporting by wave line. Shortages can be reported on the wave line leveland automatically distributed to all included order lines.The different rules for deviationreporting leading to under shipment are:

Fair share The deviation ratio will be the same for all included order lines

FIFO Complete deliveries prioritized by ascending entry date

LIFO Complete deliveries prioritized by descending entry date.

If over shipments are permitted, the surplus quantity will be distributed among theincluded order lines according to ordered quantity.

Stock transaction historyAll transactions that by any means affect the stock balance or inventory value are loggedin the stock transaction history file with all necessary details. Movex WAC providespowerful and configurable tools for real-time inquiries and tracing analyses.

Examples of information carried by each record in the stock transaction history file are:

• Precise time stamp

• User that initiated the transaction

• Transaction type, such as customer order issue, purchase order goods receipt, lotreclassification, location movement and so on

• Order number and line

• Order type

• Location of the issue or receipt

• Container

• Lot number or serial number

• Lot references, such as production batch or charge number

• Transaction quantity

• On-hand balance after transaction

• Inventory accounting price

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• Acquisition cost

• Reason code

• Project number

• Catch weight

• Attribute identity.

Physical inventoryRoutines for taking physical inventory are among the mandatory features in every ware-house system. Movex WAC provides routines for both planned counting and ad hocadjustments of the actual on-hand balance.

The main methods are:

Cyclic counting Assortments controlled by time period between counting specified per item and warehouse

Periodic counting Assortments manually specified, such as by stock zones,item groups and so on

Zero point counting SKUs with on-hand balance equal to zero or close to reorder point.

Counting deviations are calculated by comparing reported balance with recorded bal-ance on the date and time the counting was physically performed.This enables feedbackof the counted result at any later time without locking assortments for transactions dur-ing physical inventory.

The content of this document may be amended without priornotice and does not form any binding undertaking.The documentmay contain technical inaccuracies or printer's errors. It is alsopossible that the material contains information on products whichare not available in all countries. Some of the functionalitydescribed in this Fact Sheet may not be available in the currentgenerally available version of Movex, but is planned to be includedin a version under development. Information on functionalityincluded in a specific version of Movex is specified in the relevantApplication Summary.The copying of this document in any formor any way, electronically or mechanically, including photocopying,for any purpose is prohibited by law except where expressly per-mitted by Intentia International AB. Movex® is a registered trade-mark or a trademark for which registration has been appliedbelonging to Intentia International AB. All other product names aretrademarks of their respective owners.

© Copyright Intentia International AB 2001.

Intentia is one of the world's leading suppliers of e-collaborationapplications. Our business concept is to develop and make busi-ness processes more effective by combining software and know-how. Our e-collaboration application Movex, is one of the mostadvanced on the market and is available in a number of industryapplications to meet the unique requirements of different industrysectors. Movex is also one of the cornerstones of the IntentiaSolution: A unique set of tools, methods and functionality for con-figuring and implementing e-collaboration applications. Intentia hasmore than 3,000 employees in 40 countries around the world.

For further information, visit our Web site: www.intentia.com

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