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TRANSCRIPT
© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
Welcome to Session 317
Sponsored by: Presented by:
Eric Lamphier
Senior Director – Product Management
A Smoother Road for Your Supply Chain:
How to Better Integrate Warehouse &
Transportation Management
Agenda
• Typical Challenges
• Starting Point(s)
• Other Considerations
• Recommendations
• Benefits
• Wrap-Up and Q&A
Session 317
A Smoother Road
for Your Supply
Chain: How to
Better Integrate
Warehouse &
Transportation
Management
Sponsored by:
Manhattan
Associates
SMOOTH
The traditional challenge with
WMS & TMS integration… “Siloed” Departments, Processes, Systems
WMS TMS
The traditional challenge with
WMS & TMS integration… Integration via the ERP is NOT the answer
WMS TMS
ERP
Sometimes “optimized” is not “optimized”
For example, the optimal TMS plan may not work well for the WMS
WMS TMS
Shipments
Potential Issues:
Not Enough Labor
Poor Inventory Flow
Processing & Automation Constraints
Unbalanced Multi-Channel Order Fulfillment
Sometimes “optimized” is not “optimized”
Conversely, the optimal WMS plan may not work well for the TMS
WMS TMS
Potential Issues:
Insufficient Lead Times
Unbalanced Order Destinations
Mismatched Product Classes
Less Than Optimal Weigh & Volume
Orders
Integration, Not Magic!
Magic Pixie Dust
Starting Point(s) • What are the strategic objectives?
– Where are the improvement opportunities?
• Inventory
• Transportation
• Labor
• Customer Service / SLAs
– Where are the constraints?
• Inventory from suppliers and/or Value Added Services
• Distribution Center storage and/or Automation
• Personnel and/or Enabling Equipment
• Carriers and/or Carrier Pick-Ups
• Number of Deliveries to Stores/Customers per Week
Starting Point(s) • What is the workflow that will support the strategy?
– Which system will take the first step?
• WMS or TMS?
– Which system will be the ultimate system of record?
• WMS, TMS, ERP, or other?
Starting Point(s)
• Let’s talk the same language!
– Or arrange for translation (via an EAI tool)
– Frequency & Protocol
– Exceptions & Updates
– How are things defined?
• i.e. Orders, Shipments, Carriers, etc
Other Considerations
• Exception Handling
– What are the relevant exceptions for your operation?
– Are all exceptions treated equally?
– What can be automated versus manual review and resolution?
• Order Filtering
– Are some orders best processed without WMS/TMS integration?
• Overlapping Functionality / Sub-Modules
– Yard Management
– Appointment Scheduling
– Dock Management
– Parcel Rating & Execution
Other Considerations
• Synchronization / Context
– How are the modules synchronized when it comes to critical data?
• Concurrency
– Is there a way to prevent one module from significant activities
and updates while the other module is optimizing and updating the
orders and shipments?
• Process Lead Times
– Do assumptions and SOPs need to change when WMS/TMS
integration is implemented?
• i.e. to allow for TMS Carrier & Equipment selection, Shipment and
Lane Building, Tendering, etc
• i.e. to allow for WMS Value Added Services, Adequate Labor
Resources, and/or Inventory Availability
Recommendations
• Clearly define:
– Strategic Objectives
– Aligned Integration Workflow
– Detailed Business Requirements
– Technical Requirements
– Likely Constraints & Exceptions
– Project and Post Implementation Success Criteria
– Test Plans
Recommendations
• Identify :
– Business and IT Leads for WMS & TMS areas
– Solution Architects
• Business Workflows
• IT Deployment – hardware & software
– Partners
• Solution(s) Vendor
• Third Party Integration Experts
– Communication standards
• Protocols, frequency, triggers, monitoring, & recovery
• The role of an EAI tool, when required
– Including module-to-module and ERP integration
Recommendations
• Test:
– All Workflows
– Exceptions
– Data synchronization
– Concurrency
– Acceptance & Volume Testing
– Electronic Carrier Communications
– ERP Integration
Recommendations
• Training:
– Operations and IT Support Resources
• Implement:
– Mock Go Live
– Conversion & Contingency Plans
– Diagnostics & Logging
– Success Criteria
– Ownership & Reasonable Rollout Plan
Recommendations
• Strongly consider proven solution providers
that offer both WMS & TMS products
• A better approach to WMS/TMS Integration:
– Common Database & Business Objects
• No “translation” of messages
• Single point of integration to/from external systems
• Real-time integration, data synchronization, and
concurrency handling
– Common User Interface & Single Sign-On
– Shared Components
• Instead of redundant components
– Pre-built Integration & Expertise
– Pre-built Workflows & Exception Handling
WMS TMS
WMS/TMS Integration: Benefits
• Increase Speed & Inventory Turns – Integrate, Automate, & Reduce Manual Intervention
– Integrate Processes Across YMS, WMS, & TMS
• Improve Customer Service – Deliver the Right Orders on Target (time, price, packaging)
• Reduce Transportation Spend – Select the Best Mode, Carrier & Carrier Service
– Build Better Shipments
– Execute Immediately & Accurately
• Enhance Visibility – Across Silos / Departments
WMS/TMS Integration: Wrap-Up
• “Infrequent” integration messages are likely to
produce suboptimal results
– Real-time, contextual communication is better
• Exceptions will happen – plan for them
• Do not underestimate the complexity
• The integration can provide measurable benefits
to multiple supply chain departments
– Distribution, Transportation, Vendor Collaboration,
Merchandising, Retail, etc
© 2012 Material Handling Industry®. Copyright claimed as to audiovisual works of seminar
sessions and sound recordings of seminar sessions. All rights reserved.
For More Information:
Speaker: Eric Lamphier
Company: Manhattan Associates
www.manh.com
Visit MODEX 2012 Booth 709