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Copyright 2008 SCDigest and

The Supply Chain Television Channel

Voice-Based Distribution and Warehouse Management

Supply Chain VideoCast™

Copyright 2008 SCDigest and

The Supply Chain Television Channel

Broadcast Made Possible by:

Voxware Confidential. © 2008 Voxware, Inc. All rights reserved worldwide.

Voice Solutions that Adapt to Your World

Why Voice?

Rich Hayden

Director, Business Development

Voxware, Inc.

Voxware Confidential. © 2008 Voxware, Inc. All rights reserved worldwide. 44

Warehouse Distribution Problems

� Low productivity levels?

� Poor fulfillment accuracy rate?

� Cost of a mis-shipment?

� High employee turnover?

� Increased inventory adjustments?

� High injury or accident rate in the warehouse?

� Is it costing you too much to train new and temporary help?

� Do you struggle training a multi-lingual workforce?

� Are you pigeonholed into locked down warehouse functionality?

� Are you paying for costly customizations of the company’s legacy or dated WMS Solution?

� Do you pay extra for dedicated hardware for dedicated applications?

What Keeps Distribution Managers Up At Night?


Warehouse Distribution Processes

Picking

ReplenishmentLoading

Sortation

Receiving

Putaway

Cycle Counting

Shorts Processing

Mgt Tools

Put-to-Store

Execution Techniques

• Paper• RF Scanning• Voice

• Pick-to-Light• Carousels & AS/RS• RFID


Execution Techniques Comparison

Paper RF Scanning Pick-to-Light Voice

Speed��

Accuracy ��

Flexibility & Exceptions ��

Real-Time Data

��

Hands & Eyes Free

��

Source: 2005 KOM Voice Study


Voice In Action – PFG Video


Voice in the Warehouse

• Rugged, Wearable Computer

• Two-Way Communication with OrderManagement System

� No need to look at paper pick lists

� No need to hold a scanner

� Hands-free – Heads-up work style

� Real-time system communications

Voice Components

Headset / Microphone for two-way communication

Wearable Wireless Rugged Computer

System Prompt

Pick Three

Worker Response

Pick Three Confirm

Worker Response

Check

Zero, Zero, One

System Prompt

Aisle Delta Two Six,

Slot Alpha Zero One

Hanging Aisle Location IDs with “Check Digits”

Aisle and Slot Location ID

Check Digits

8



Voice Goes Beyond Simple Data Capture

� Hands Free / Heads Up

� Provides Fluid Work Flow

� Multi-Lingual

� Multi-Modal

� Multi-Use

� Quickly and Easily Learned

� Enhances and Extends Existing WMS Application Without Modifications

� Adaptable and Configurable

� Used in Picking, Replenishment, Shipping , Inventory Control and other Warehouse Functional Tasks

� Light Weight and Attached to the Worker



� Increased Accuracy – to 99.9%

� Improved Worker Productivity – 8 to 25%

� Reduces Training Time

� Reduced Employee Turnover

� Improved Workplace Safety

� Elimination of Audit Functions (Order Checking)

� Elimination of labels, Paper lists

� And… Manager-on-the-shoulderContinuously provides direction, correction, verification, prompting to deliver these benefits!

Return-on-Investment (ROI)

Spoken instructions“head-up”-

Voice response

“hands-free”


Voice-Based Warehouse Distribution

Jeff Williamson

Senior VP, Operations

Performance Food Group


Customer Profile

Performance Food Group (PFG)

• One of the nation's leading foodservice distributors, based in Richmond, VA

• Delivers food and food-related products to more than 41,000 restaurants and institutional customers across the United States.

• PFG distributes a broad array of national and proprietary brand food and related products, including baked goods, seafood, choice cutUSDA meats, condiments and cleaning supplies.


PFG Critical Business Drivers

Improve Customer Service Levels

• Reducing Mispicks and Not-On-Trucks while not having a Negative Impact on Productivity

Manage Quality Control Costs

• Decrease Extra Costs Due to Case Retrieval, Credit Issues, Express Shipping, etc. Due to Errors in Selection


PFG Distribution Network

PFG Broadline Division

18 Distribution Centers

• 100,000 sq ft to 400,000 sq ft

• 10 to 65 order selectors per site


PFG Voice Deployment – Profile

WMS Multiple WMS Systems; Legacy & Tier 1

Client Units LXE – HX1 Units

Voice Solution Voxware 3

Voice Application Voice Picking – Order Selection

Voice Deployment Frozen, Cooler, Dry & PIR

IT Deployment Centralized – Servers located in Richmond VA



PFG Voice Deployment – Rollout

Sept 2007Richmond VA3 Month Pilot


Voice Deployed at 11 Sites

2008 2009 2010

• PFG Voice Project

� PFG Implements the Voice Sites Without Voxware’s Assistance

� PFG IT Supports Deployment via the Centralized Server Approach

� New Site Every Month till Completed

� Additional Site will be Deployed before the End-Of-Year

• Project will be completed in the 1st half of 2009 – Total of 18 sites

June


PFG Voice Project Results – Training


� New Hires Reach Acceptable Productivity Goals Faster with Voice

Voice Selection Training Curve

40

45

50

55

60

65

70

75

80

85

90

95

100

1 2 3 4 5 6 7 8 9

% P

erf

orm

an

ce

Pre VoiceExpectation

Voice


PFG Voice Project Results


� Improved Service Levels

� Implemented a “Best Practice” for the Selectors Process

� Reduced Training Time


PFG Voice Project Results - Mispicks

Service Level - Mispicks

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

0.90

1.00

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

Mispicks 2008

2007 Average


� Mispicks have been Reduced by 38% - from .9 to .56 per 1,000


PFG Voice Project Results – Truck Shorts


� Truck Shorts have been Reduced by 25% - from 1.29 to .97 per 1,000

Service Level - Truck Shorts

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec

Truck Shorts 2008

2007 Average


PFG Voice Project Results – Combined


� Service Levels have Improved by 31% - from 2.29 to 1.53 per 1,000

Service Level Combined

0.00

0.50

1.00

1.50

2.00

2.50

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Combined 2008

2007 Average


PFG Voice Project Results – Productivity

Productivity Gains

� Catch Weights are Captured Via Voice – Not Manually

� Selector “Communicates” Missing Product to Forklift Driver


Thank You

Jeff Williamson

Senior VP, Operations

Performance Food Group


Voice Solutions that Adapt to Your World

Why Voxware?

Rich Hayden

Director, Business Development

Voxware, Inc.


Voxware’s Open Standard Approach

Voice Solution Components

Creates the Necessary Voice Prompts & Grammar to Support Your Operational Process Flow

Tasks are converted into Voice Prompt/Response Format

• Task - Order 9, Line 1, SKU ABC, Qty 9, Zone D, Loc A101, CD 11…

• Vox 3 - “Go to Location A101” “Check 11” – “Pick 9” “Grab 9”

Data Integration Voice Application Voice Recognizer Hardware

Orders

Tasks

Waves

Prompt/ResponseVoice Solution

25

WMS/ Legacy


Open Standard Approach – Voxware 3

Configurable - No Programming

�Rapid Delivery of Robust, Sophisticated Voice Applications

�Easily Change / Extend / Further

Customize Applications

�Hassle-Free Integration with ERP /

WMS Systems

Extensible Platform for Future

�Develop New Components, New Grammars, New Solutions

�Complete Maintainability & Support of a Single Core Code Base

Leverage Mainstream IT Standards

�Platform Independence, and thus

Portability

�Flexibility for the Future

26


VoxBrowser

Open Standard Approach - Components

Unit

Voxware 3

Voice Enabled RF Data Collection Terminals

Voxware Integrated Speech Engine

Text-to-Speech (TTS) Engine

Voxware 3

�Design

� Integrate

�Manage

Creating a Best-in-Class Voice Practice

VoxStudio VoxConsoleVoxConnect

27


Open Standard Approach – VoxStudio

�Process Improvements are Welcome!

�Easy to implement your

ideas

�Gap Filler for WMS/Legacy Systems

Have It Your Way!


Open Standard Approach – VoxConnect

�Easy to Create & Update Messages

�Define

�Map

�Transport

�Pre-defined WMS Adaptors

�Integration not Programming

�The “Data” Drives the Process

29

You Are in Control!


Open Standard Approach – VoxBrowser

Voxware Integrated Speech Engine

� Any Unit, Any User, Any Time

� 26+ years of speech recognition technology experience

� 8 speech recognition patents

� Continuous speech recognition

� Speaker-trained/speaker-dependent

technology

� Most accurate recognition accuracy

available today

� Noise adaptive; out-of-vocabulary rejection

� Training, normal and expert modes

� Multiple, concurrent language support

� Full text-to-speech capability

The Basics

� Personalized Voice Sign-On

� Natural Voice Recorded Prompts

� Multiple Speeds

� TTS for descriptive data prompting

� Customer Specific Dialog Prompts

�Your nomenclature

�Your sites

�Your Languages

30


Open Standard Approach – SOA

� Voice Deployment - Your Choice of …

� Unit – Voice Only, Multi-Modal, Multi, Use…

� Application – Picking, Put-to-Store, Putaway, Replenishment, Loading, Audit Check, Cycle Count…

� Voice Dialog – Prompt & Responses

� Server Deployment – Centralize or Decentralize

� Operating System – Windows, Unix, Linux…

� Database – MySql, MS SQL, Oracle…

� Wireless Network – 802.11x

� Voice Deployment – Leveraging Internet Standards…

� Voice XML

� HTTP

� Java

� Web Server

“True” Service Oriented Architecture = Choices


Voxware’s Open Standard Approach - Payoff

Express Startup

� System implementation is completed in weeks instead of months

� Expensive development projects are avoided

Onsite Adaptability

� You can rapidly respond to changes in your warehouse without directly involving your voice vendor

Open Flexibility

� 100% standards-based service oriented architecture (SOA)

� Leverage existing IT investments

� Hardware, Database and Platform Agnostic


Voxware’s Open Standard Approach - Payoff

� Save time and $ on implementation

� Eliminate $ spent on customization as you

fine tune the system

� Avoid costly customization as your processes

change over time

� Leverage current hardware, operating

systems and software infrastructure

� Future proof IT investment by using latest standards-based SOA technology

Lowest Total Cost of Ownership

HIDDEN

COSTS�


Voxware Company Highlights

� Global solutions company�US Headquarters – Princeton, NJ�US Operations Center – Boston, MA

�EMEA Operations Center – Theale UK

� Best-of-class technology software solutions with greatest depth

� Patented voice recognition engine & VoiceXML browser-based client software

� Only voice vendor with a software architecture to support a true platform independent strategy

� Experts in voice technology and logistics

� Broad spectrum of industries served, including:�Food service, grocery and cold storage

�Specialty retail (including apparel) and general merchandising

�Restaurant chains and convenience stores�Auto parts

�Healthcare and pharmaceutical

34

Speaker Contact Info• Rich Hayden, Voxware

– [email protected]

• Jeff Williamson, PFG– Contact Rich Hayden)

• Dan Gilmore – Supply Chain [email protected]

Resources

www.voxware.com

www.pfgc.com

www.scdigest.com

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