w&h systems omni channel modex presentation

8/9/2019 W&H Systems Omni Channel MODEX Presentation

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2014 MHICopyright claimed as to audiovisual works of seminar sessions and

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Sponsored by:

Omni-ChannelFu l f i llment in a

Changing

Retai l WorldPresented by:

Dave Lodwig

System Manager


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In omni-channel fulfillment, all the resources of the supply chain are

focused on transparently serving a single shopper who has placed a

single order. Traditional warehouses are not designed to handle the

omni-channel consumers orders. To meet the challenges of omni-

channel fulfillment, retailers must redesign their distribution processes

and add automation equipment to their DCs.

Key Takeaways

* How to meet the challenges of omni-channel fulfillment

* Automation needed to meet omni-channel fulfillment requirements

What You Will Learn


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Agenda

What is Omni Channel distribution and how

is it different from traditional retail

distribution? Order types and shipping channels

What do you need to do Omni Channel

efficiently?


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Omni Channel Retailing

Omni-Channel Retailing is the evolution of multi-channel

retailing, but is concentrated more on a seamless approach

to the consumer experience through all available shopping

channels, i.e. mobile internet devices, computers, bricks-

and-mortar, television, radio, direct mail, catalog and so on.


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Retail Supply Chain Evolution

Retail Orders

1970s-1990sSingleMulti

Cross

Omni

Seamless?


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1990s - 2010Single

MultiCross

Omni

Seamless?



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2010 - 2012Single

Multi

CrossOmni

Seamless?


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2010 - 2012Single

Multi

Cross

OmniSeamless?



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Complexity

20151995 2000 2005 2010

11

31

51

6978

Internetusers

per100


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Omni Channel Impacts on

Retail Distribution

Pick any type of order from one inventory and ship

it through any channel

Order Types

Retail Consumer

Wholesale

Shipping Channels Retail (TL, LTL, and Parcel)

Consumer (Parcel)

Wholesale (TL, LTL, or customers carrier)


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Order TypesRetail

LowMedium no. of orders

MediumHigh no. of lines/order

LowMedium no. of units/line

Consumer MediumHigh no. of orders

Low no. of lines/order

Low no. of units/line

Wholesale

LowMedium no. of orders High no. of lines/order

High no. of units/line

Omni Channel Impacts on Retail

Distribution

Shipping ChannelsRetail

Parcel

LTL

Truck load

Consumer Parcel

Wholesale

LTL

Truck load

Pick up


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The Co$t Of TheComplexity

Omni-channel distributioncreates Omni-Processes

Complexity creates more

challenges


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Key Performance Issues

Service levels and on-time shipment Orders received by 12 PM or later shipped same day

Inventory accuracy and order fill rate

98+% accuracy Fill rates need to be as high as inventory

Order accuracy 99+% every time


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Operational Changes

Inventory/Customer

visibility

Real time inventory: Do

you have it in stock?

Location of inventory:

Where do you have it? When can the customer

get the product?

Service levels

Reduced time to ship

orders

Easy returns

Order Picking & Packing

Less time to complete

orders

100% accuracy every time

Forces smaller batches

More Value Added Services

Shipping

Provide more real time info

Carrier management


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Visibility

Information systems are omni-channel:

Inventory Distribution center inventory

Retail store inventory (need to react to eCommerce orders real time)

Order completion time When will the order be completed (sometimes time is dictated by consumer)

Order completion time

Delivery Pick up time and date

Carrier tracking information

Whenever Wherever Whatever

I want i t and I want i t now !

Where is my stuf f?


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Inventory

Your inventory in all channels must be merged into one Distribution center and retail inventories are not mutually exclusive anymore

Is it available on-line?

What retail stores have the product closest to the consumer

Retailers can leverage their retail store presence and inventory You have to be 100% accurate or consumer will be lost

If you manage the inventory right and communicate with the consumer you may be able to hold less

inventory


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Service Levels

Todays consumers want product from any one of yourchannels as fast as possible

The amount of time that you have to pick, pack, and ship an order

will only become less over time Today you only have approximately 4 hours to pick, pack, and ship an order

Same day delivery will shorten the window more

You have more channels to send it through Consumer orders can be sent to your or other retail locations

Today they can be sent via parcel carriers, but cost will eventually force these

orders to be merged with retail store shipments

Returns

Need to be dealt with quickly and efficiently Consumer wants credit and or new merchandise right away

Resellable product should be returned to stock ASAP


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Order Picking

Less time to complete orders Can force smaller batches/waves

Makes batching more difficult and time consuming

(relatively)


Errors are inevitable, so you need to account for and manage

them efficiently


Waveless or dynamic wave transition

Could a manual operation be efficient enough?

Packing

Personalization and gift wrap

Brand specific boxes and collateral


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Shipping

Order Picking & Packing

Less time to complete orders



More Value Added Services

Shipping

Provide more real time info Shipment time stamp

Specific carrier and tracking info

Multiple accounts (drop shipping with a another companys carrier account)

More carriers UPS, FedEx+, USPS, USPS servicers,

Regional carriers and couriers

Cost reduction Pressure to reduce costs due to free shipping

Same day shipping


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Automation Efficiencies

Inventory

Warehouse Control System provides real time up dates Heartbeat of the automated systems: Manages all the data downloaded

from Host/WMS

Runs all the people and automation to fulfill orders

It can provide more granular detail during the fulfillment process

The information needs to be given to the Host/WMS for determining consumerinformation

Automated storage and retrieval allows faster access to inventory Shorten time to inventory

Service Levels

Shorter order cycle times can help shorten response times

Benefits smaller batch environments Easier to prioritize orders and send the most important to the front of

the line No physical management required


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Automation Efficiencies

Order Picking

Shortens order cycle times

More accurate

Frees up labor for manual tasks

Easier to manage

Can be integrated with packing automation to create large labor savings

Shipping

More flexible and productive

Handles the complexities of 3rdparty billing easily


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Increase the speed of discrete order picking

RF, Voice, Pick-To-Light,

Batch picking

Pick the units for many orders at one time Requires a second step to sort them out into discrete orders (consolidation)

The secondary sort can done manually

(assisted with automation) or with a unit sorter

Put System Used when many orders contain the same SKU(s)

Feed the system with full cases or pallets

Order Picking Automation


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Consolidation ConsolidationConsolidation

Order Picking Automation

Batch Picking Areas

Medium

Movers

Slow

Movers

ManualPacking

Semi-Automated

Packing

Fast

Movers

AutomatedPacking


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Shipping Automation

Productive

Easily handles 3,0005,000

packages per hour

Handles almost any type of

product Cartons, bags, envelopes

Shipping software integration Fully automate the rate shopping and

manifesting function


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Automation

Route

Sort

BalanceOptimize

Link

Link

Connect

ExchangeSync

Operation

Plan

Predict

ManageControl

Business

Dashboard

Report

Statistics

Receive

Put-away

ReplenLocate

Pick

Pack

Ship

Move

Warehouse Control System


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For More Info rmation :

Speaker email: [email protected]

Website: www.whsystems.com

Or visit MODEX 2014 Booth 4726

w&h systems omni channel modex presentation

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