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Every day, companies all over the world count on Motorola mobility solutions
to keep their supply chain operations at peak productivity and profitability.
When it comes to supply chain optimization, Motorola’s end-to-end supply
chain mobility solutions offer the expertise gained through successful proven
deployments in many of the world’s largest enterprises, a comprehensive and
proven enterprises class product portfolio — including wireless infrastructure for
seamless ‘inside outside’ mobility, integrated voice and data devices and best-
in-class applications through a world-class partner network — and a complete
portfolio of services designed to help you get and keep your mobility solution up
and running to ensure peak performance and maximum value.
For more information on how Motorola mobility solutions can streamline your
supply chain, please visit motorola.com/supplychainmobility or access our global
contact directory at motorola.com/enterprise/contactus
Executive summary This white paper will examine how warehouse
mobility can serve as the foundation of an
The warehouse is at the center of your business, enterprise-wide mobility, creating a more
a key area through which nearly everything in collaborative information architecture that not
your business must pass — from packages in only enables a leaner warehouse operation —
a parcel post environment to raw materials and but a leaner, more profitable enterprise as well.
finished goods in a manufacturing plant to a
wealth of products in a distribution center. When The negative business impact
mobility is extended throughout your warehouse,
a new level of efficiency, accuracy and visibility of the manual warehouse
can be achieved. Paper processes are replaced
by real-time computerized forms on mobile Regardless of whether you are a manufacturer or
computers; bar code scanning enables checks and distributor, the warehouse is a critical hub in your
double checks that the right item is being picked, business. Through this central depot, everything
packed and shipped; and RFID provides automatic must pass — from raw materials waiting to be
tracking of materials without human intervention. manufactured into finished goods to product
waiting for shipment downstream to a distribution
With warehouse mobility also comes the collection center, retailer or end-customer. When the many
of a richer data set in real time, providing a real-time warehouse processes are paper-based and workers
view of inventory in the warehouse, order status, are not connected in real-time to your warehouse
and more. And when availability of this information management system (WMS), information is manually
is extended to other areas of your business, the full collected with pen and paper, and entered into the
value of warehouse mobility is realized. The data computer at a later date. These manually-driven
collected in this key focal point of your business has procedures in the warehouse cause a number of higher
the power to enable significant cost and operational level operational issues in the warehouse, including:
efficiencies throughout the enterprise — in the yard
and on the production line as well as in dispatch, • High levels of errors in information due to the
sales and service. double-touch of data (handwritten followed by
data entry).
1 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Receiving
When workers at the receiving dock are enabled with real-time
• Slower movement of information in and out of Manual reading of labels and reconciliation on a
your business systems, resulting in reduced paper form takes time and can translate into a wide
visibility throughout the warehouse operations. variety of inventory errors. Inventory may show
in stock when in actuality there is an out-of-stock
• Reduced employee productivity due to time condition, and vice versa.
wasted completing paperwork and locating
information on labels. Labels on shipments may be damaged or illegible,
causing a long delay in processing, and resulting in
• Reduced customer service levels due to the congestion at the receiving dock.
impact on velocity in the warehouse.
There is a major lag between when shipments arrive
• Increased cash-to-cash cycle due to the slow
and when they are visible in your inventory system.
movement of information.
2 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
processing orders are delivered right to the worker route to that location right to a worker’s mobile
— from where to stage accurate shipments for handheld or hands-free computer. A quick scan
put-away or cross-docking to how to handle any of the bar code on the shelf tag (or read of an
errors in the shipment. Velocity in the receiving RFID shelf tag) not only ensures the item is put
function is increased as the same workforce can in the correct place, but also provides a record of
process more shipments. Dock-to-stock cycle the location of that exact shipment. Items reach
times are reduced. The increased inventory the shelves in the shortest amount of time, warehouse
visibility allows you to intelligently direct put-away workers can increase throughput — and you
or conveyance for items that are low in stock first, know the exact location of all inventory at a highly
reducing the opportunity for costly out-of-stocks detailed level.
to impact the order fulfillment process. And the
instant visibility into the order system enables cross As a result:
docking to effectively reduce handling time and
costs for incoming shipments. • The same number of workers can process more
put-away orders each day.
Put-away
• Improved inventory visibility:
Process pain points
Manual processes produce a variety of issues in the – Reduces out-of-stocks.
put-away function:
– Reduces stocking inventory levels and
related warehouse space requirements.
• Congestion in the aisles due to limited
throughput. – Provides the information required to
implement first-in first out (FIFO) or last-in
• Product sitting on the warehouse dock waiting
first out (LIFO) inventory management,
for processing is not yet visible in your inventory
which can have a significant positive
— and that lack of visibility can translate into
impact on the company’s profitability
a false ‘out-of-stock’ situation that ultimately
analysis and tax liabilities.
results in unnecessary lost sales.
• MHE asset utilization is improved through
• Errors in the put-away process can result reduced travel time in the warehouse aisle,
in misplaced inventory that can result in: which reduces wear and tear and maintenance
false out-of-stocks; lost sales; and needless requirements for the vehicles.
additional expense associated with the purchase
and storage of additional product to replace Cross docking
‘lost’ inventory that is actually sitting on the
warehouse shelves. Process pain points
When paper-based processes are utilized in the
Business pain points cross docking function:
The process pain points affect warehouse
operations in a number of areas: • Lack of real-time processing translates into
shipments that often wait on the dock for
• Poor utilization of costly warehouse space. appropriate paperwork to enable shipping.
• Low employee productivity and put-away • Manual reading of labels adds to processing
throughput. time and increased errors that can result in the
delivery of a shipment to the wrong dock.
• Poor inventory visibility and accuracy
• Lack of visibility into other shipments on
– Poor utilization of material handling the receiving dock eliminates the ability to
equipment (MHE) such as forklifts. coordinate the movement of materials bound
for the same dock.
Solution: mobility
With real-time access to inventory systems in the • Lag time between time of shipment and update
put-away function, you can automatically deliver of order system.
the right storage area as well as most efficient
3 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Business pain points Business pain points
Manual procedures in cross-docking negatively The overall impact on warehouse operations includes:
impact warehouse operations in a number of areas:
• Slower dock-to-stock times.
• Inability to provide updated order status
information to customers. • Reduced employee productivity.
• Low employee productivity that translates into • ‘Lost’ inventory that can affect order fulfillment
higher labor costs. times and ability to meet customer shipping
requirements.
• Poor utilization of material handling equipment
(MHE) such as forklift. Solution: mobility
Real-time access to the orders database allows
• Mis-ships and other shipment delays that instant identification of materials and automatic
ultimately impact customer service satisfaction delivery of the proper staging location for put-away
and retention. or shipment in package handling applications. And
the rapid and accurate staging of shipments and
Solution: mobility packages helps ensure that orders are shipped
When real-time information is available in the cross in a timely fashion, improving order fill rates and
dock function, shipments are handled once instead customer satisfaction.
of multiple times. Instant access to the order
database provides the on-the-spot visibility needed Returns
to cross dock the incoming material for immediate
shipping to fulfill customer orders — eliminating Process pain points
the need for the products to be staged for put- In the returns function, workers need access to
away, placed on the warehouse shelves, picked, a great deal of information in order to efficiently
packed and re-staged for shipment. Access to real and properly process returns. Without real-time
time information ensures that the right shipment information in the returns function:
is delivered to the right dock and loaded onto the
right truck. Visibility into all the shipments slated • Major processing delays occur while workers:
for cross docking allows for increased efficiencies
in movement between docks — instead of moving – Validate that the return is valid through the
each shipment individually, shipments bound for existence of an RMA or other returns
the same dock can be aggregated. That aggregation document.
reduces usage times and wear and tear for forklifts – Identify the returned item — a challenge if
and other material handling equipment. And the the item is no longer in its original packaging.
combined efficiencies allow the same number of
workers to process more shipments on any given – Document the condition of the returned
day, driving labor costs down. material.
4 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Returns
With real-time access to inventory, accounting and order
• The resulting backlog of returns and the associated regularly inventory counts. When these counts
delays translates into: are conducted manually, they are extremely time
consuming and often fraught with errors.
– Slower processing of customer credits, reducing
customer satisfaction — and retention. Business pain points
Manual cycle counts traditionally translate into:
– Slower return of product to warehouse
shelves, impacting the velocity of availability
• High labor costs.
for new order fulfillment.
5 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Picking
With mobility in picking operations, the same
cycle counts routinely. And the resulting new • Inventory systems are not updated to reflect
level of visibility into inventory data delivers a the pick until the picking form has been entered
number of benefits: into a computer at a later time.
• Reduced capital expenditures for holding • Shipment error rates can exceed acceptable
inventory. levels or company defined metrics.
• Reduced space requirements for inventory. • Lack of real-time inventory visibility results
in costly out-of-stocks, lost orders, lost
Picking customers and lost profitability.
Process pain points Solution: mobility
Paper and pen procedures in the picking function With mobility farther upstream in the warehouse
are extremely inefficient: supply chain in the put-away function, you already
know what products are on your warehouse shelves
• Pickers must walk the warehouse aisles to and where specifically they are located. When you
locate product. add real-time access to your order and inventory
business systems, you can automatically deliver
• Picks cannot be easily aggregated, either within
electronic picking orders to a mobile device that
an order (due to the inability to identify that
includes a pick list along with the fastest route to
multiple items on a pick list are located in the
the items. A quick scan of a shelf tag, bar code or
same area) or across orders (due to the linear
RFID tag provides instant verification that the right
nature of manual picking, which is processed
item has been picked, and the item is instantly
one order at a time).
deducted from inventory. Now:
• Product cannot be automatically verified as
accurate when picked. • Productivity is increased — the same number
of workers can process more orders per day,
driving the cost of doing business down.
6 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
• Errors are significantly reduced through the • Inability to dynamically modify shipping orders to
automated capture of data and instant double- accommodate emergency orders from customers.
check for picking accuracy.
• Excess use of filler materials in packing operations.
• Out-of-stocks are eliminated through the ability
to instantly deduct items from your inventory Business pain points
as they are picked. Lack of real-time information in these crucial last
stops in the order fulfillment process translate into:
• The ability to deliver granular picking information
enables LIFO/FIFO picking for better inventory • Delays in shipping and increased shipping costs.
management.
• Reduced customer service satisfaction.
• The ability to instantly store serialized product
information with customer orders enables • Increased shipping costs.
enterprises to expeditiously locate any product
or parts that have been recalled, reducing liability • Poor truck utilization.
as well as the high costs associated with Solution: mobility
tracking products that have already left your Mobility can streamline these final stages of order
facility and have been delivered to your fulfillment, ensuring that the right order contains
distribution channel or end customer. the right products, and is shipped to the right
customer at the right time via the right method
In addition, when mobile access to product
of shipment.
databases is added, companies can leverage
detailed information about the specific items in
In the packing function, mobility serves as a crucial
your warehouse. For example, information on
cross-check to ensure the accuracy of an order
consumer appliances can be leveraged to control
prior to packing. In addition, in the event that any
clamp trucks, prevent operators from inadvertently
items that were backordered have now arrived in
applying too much pressure during put-away and
the warehouse, the packer can receive notification,
picking. This valuable mobility application helps
enabling completion of the shipment prior to leaving
reduce the high cost associated with the delivery
your facility.
of damaged equipment — from the cost of
the return and re-shipment to the cost of an
Packing material costs can also be controlled.
unsatisfied customer.
Your business system can automatically determine
the right size carton for the shipment, removing
Packing, staging and shipping guesswork, and eliminating the use of excess
Process pain points amounts of filling materials.
Shipping and staging are the equivalent of the
‘last mile’ in the warehouse, where the orders In shipping, mobility provides a final cross-check to
effectively ‘meet the road’ en route to the customer. ensure that the order is correct, properly addressed
Inefficiencies in these areas include: and scheduled for the proper shipment method,
complete with on-the-spot printing of all necessary
• Quality control: time consuming manual cross paperwork.
check that the right items are in the shipment.
And coordination with the dispatch function ensures
• Delays in processing while paperwork is entered that the shipment is properly staged for loading on
to enable the creation of manifests and staging the right truck in the right order.
instructions.
With mobility in your packing, shipping and staging
• Processing delays in shipping that ripple into operations:
carrier detention charges.
7 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
• Productivity is increased — the same staff can difficulties in accurately predicting the end of
now ship more orders per day. the asset lifespan — and the need to
purchase replacements.
• Shipping times are improved — the same staff
can now ship more orders per day. Solution: mobility
Mobility can completely automate the asset tracking
• Delivery times are improved. process and provide up-to-the-minute information
on the whereabouts of totes, pallets and more
• Customer service and satisfaction are improved through advanced data capture. When RFID tags
— customers are more likely to receive orders are placed on all assets, assets are automatically
when promised, promoting higher customer tracked as they move through the warehouse and
retention levels. onto the truck, and can easily be associated with a
specific customer order.
• Vehicle utilization is improved — trucks are fully
loaded with the right shipments.
In addition, the use of permanent hardened RFID
• Driver productivity is increased — staging in the tags eliminates any recurring tag costs for either the
correct order enables drivers to spend less time tags themselves or the labor to place the tags on
at each stop. the assets.
8 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
With a rugged integrated voice and data mobile Mobility enables tighter integration between your
device built to endure the harsh environment of the yard and warehouse workers — yielding greater
warehouse, managers can keep their desk phone, efficiencies in both functions. Based on the
email, and access to all business systems in their information already in your system, a dynamic, single
literal pockets. Now, managers and supervisors information-packed schedule can be created and
can remain on the warehouse floor to protect delivered to your workers’ mobile devices. Workers
productivity and throughput, yet maintain the real- in the yard can be directed to the exact location of the
time connection to co-workers, vendors, associates next trailer or container scheduled for conveyance,
and business information needed to achieve ensuring delivery to the dock on time. Warehouse
maximum on-the-job efficiency and effectiveness. workers already know which shipment is slated
to arrive at which dock, and are ready to promptly
unload. Once containers and trailers have been
Beyond the warehouse walls: unloaded and returned to the yard, the location of
unlocking the real value of these critical assets remains visible in your system.
warehouse mobility And the tighter collaboration between the
warehouse and yard functions enables the rapid
The value of mobility in the warehouse function is
schedule changes that can prevent an out-of-stock
easily recognized:
situation in the warehouse. Should a shipment
arrive containing items that are currently out-of-
stock, that information is visible the moment the
truck arrives in the yard. In seconds, a dynamic
• Processes across the warehouse are
change in schedule can be implemented that
streamlined, reducing cycle times.
ensures that shipment is delivered immediately to
• Worker productivity is increased, reducing the the dock, effectively reducing the impact on either
cost of labor in the warehouse. the production line or your order fulfillment process.
9 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Route accounting and proof-of-delivery • Cost effective regulatory compliance — Your
The collaboration of data between shipping and mobility solution enables the collection of
dispatch enables major efficiencies in your delivery granular information on the products that were
function. At this point, you have effectively tracked delivered to a specific customer — from bar
materials from the time they were received; for codes and lot numbers to serialized information.
manufacturers, through the manufacturing process; And this information can help enable rapid yet
to the warehouse shelves; through the order cost-efficient product traceability in the event of
fulfillment process to shipping. Shipments have a product recall.
been aggregated into loads that enable delivery of
the shipments in the least amount of miles traveled, Manufacturing — the production line
reducing fuel costs. And the ability to load the
With mobility, granular information about the parts
shipments in the order of delivery further improves
and/or ingredients stored in your warehouse that are
driver productivity.
slated for later manufacturing into finished products
or consumer packaged goods can be collected and
When your pool of business data is extended in real
compiled automatically, with little or no human
time to your drivers, significant additional benefits
intervention. When it comes to your inventory, you
are again realized — regardless of whether your
already know the supplier, when a specific item was
drivers simply need proof-of-delivery for parcel
delivered to your warehouse, and even the batch
post operations, or sophisticated route accounting
number. Now, as materials are delivered to and
and direct store delivery functions. With mobility
move through your production line, you have a very
extended to your drivers in the field, electronic
detailed history that begins with the arrival at your
signatures can be easily captured Instant proof-of-
facility. The ability to track and trace for consumer
delivery noted in your business systems, enabling
safety and to meet regulatory compliance is simpler
expedited billing — and payment.
and less cost-intensive.
And in route accounting and direct store delivery
functions, when you enable your drivers with real- Sales
time mobile computing, they have the information When real-time inventory information from your
they need to verify shipments against the original warehouse is tightly integrated into your outbound
customer order, as well as deduct any damaged sales function, mobility can enable your salesforce
items and reflect customer additions or changes to check inventory, obtain pricing and place orders
made at the time of delivery. The result is an — right from a customer’s location. This real-time
accurate on-the-spot invoice. The typical time window into the warehouse from the field delivers
associated with processing standard paperwork on major benefits in the sales function:
deliveries at the end of the day as well as exceptions
is eliminated. And the benefits can be significant: • Improved productivity — Electronic computer-
based forms replace paper-based forms that often
• Significant reduction in days sales outstanding also require later data entry into the computer.
(DSO) — which in turn improves your cash-to-
cash cycle — and your overall profitability. • Increased sales — Time previously spent on
paperwork can now be spent on sales, enabling
• Increased driver productivity — The elimination of salespeople to make more calls per day.
paperwork enables more stops per day per driver.
• Improved customer service — Orders, pricing
• Increased sales — Since drivers can now make and delivery times can be confirmed on the spot.
more stops, they have more opportunity to sell And if a customer calls requesting the status of a
more product throughout the day. present order, the information is never more than
seconds away from the salesperson’s fingertips.
• Increased accounting staff productivity — The
real-time automated interaction between the
Field service
drivers and your business system eliminates
the need for your accounting and administrative When your warehouse and field service functions
staff to process paper and enter information are integrated via real-time mobility solutions, the
into the computer. efficiency and customer service levels in field
10 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
service operations are improved. Based on the level of information collaboration throughout the
day’s schedule and the equipment slated for repair enterprise. The right set of data is available in the
or service, a list of required parts and supplies are right place at the right time to enable the most
identified and sent to the warehouse for fulfillment efficient next action — and the most effective
and loaded onto the truck. Since service personnel business decisions.
have what is required to do the job on hand, repairs
can often be completed in a single visit, improving Not only does efficiency in the yard, manufacturing,
customer service. dispatch, delivery, sales and service functions
improve, but the collaboration between functions
Other benefits of mobility in this function include provides a real-time enterprise wide view of
the ability to enable service personnel to access business information that enables key strategic
your business systems in real-time from the business objectives to be achieved. For example,
field including repair history records and product real-time inventory visibility can lead to tighter
manuals — information that increases the ability to inventory management — including a reduction
accurately diagnose and correct problems on the in stocking inventory levels and an increase in
first visit. The ability to access real-time warranty inventory turns. And reduced stocking levels can
information and to simply scan parts as they are free valuable space for re-allocation to other areas
utilized on site reduces paperwork and ensures all that will better serve business profitability — for
costs are accurately captured and passed on to the example, enabling an expansion of the assembly line
customer, protecting profitability. And information to increase capacity, or extend shipping and staging
on warranty and service contract expiration can be areas to enable more orders to be fulfilled per day.
used to prompt field service personnel to up-sell
or cross-sell appropriate services and other after- Leveraging warehouse mobility in the warehouse
market products, turning a traditional cost-center and beyond can yield highly beneficial results,
into a potential revenue center as well. including reduced costs, improved quality, better
customer service, higher margins and greater
Lastly, real-time repair information from all field profitability — delivering real business advantage.
service personnel can be automatically analyzed on
an ongoing basis — and the trends may uncover
issues related to specific parts or a specific product
Complete enterprise mobility
lot. The timeliness of this information enables you solutions from Motorola
to take proactive action to control and reduce the
business ramifications of the situation — from When it comes to enterprise mobility, Motorola
preventing future stock from being manufactured delivers. Our complete array of rugged industrial
with possibly defective parts to preventing existing mobile devices is designed for the rigors of
stock that was already manufactured with a everyday warehouse use, including bar code
defective part from being shipped to customers, scanners in addition to handheld, vehicle mount
again protecting the customer experience. and wearable mobile computers that are capable
of voice-directed and text-based applications. Our
award-winning next generation wireless LANS are
Summary: warehouse mobility built to manage the unique challenges of mobility,
— a foundation for a leaner delivering outstanding dependable wireless
connectivity as well as high-quality voice — and
warehouse and a leaner, more can meet the needs of the largest enterprise to
collaborative and profitable the small and midsize business. Our solutions
also offer cost-efficient manageability by providing
supply chain a centralized command center that significantly
reduces the time and effort required to provision,
The warehouse is at the very heart of your business
monitor, troubleshoot and update your mobile
operations. The poorly managed warehouse can
devices and infrastructure — regardless of where
actually become cost prohibitive, significantly
in the world they may be. Support for all the latest
impacting the cost of doing business — and general
security protocols and an end-to-end layered
profitability. Through mobility, real-time warehouse
strategy enables you to deploy the right level of
information can be leveraged to enable a new
security for various applications throughout your
11 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
enterprise. And if you are looking to enable next
generation technologies, such as RFID and mesh
networking, Motorola is uniquely positioned to
transform your enterprise with the broad spectrum
of mobile products and technologies to further
automate your entire supply chain — and take
efficiency and cost-reduction to the next level.
motorola.com/supplychainmobility
motorola.com/enterprise/contactus
12 WHITE PAPER: The Synchronized Distribution Supply Chain: Best Practices in Warehouse Management
Part number WP-SCWH. Printed in USA 12/07. MOTOROLA and the Stylized M Logo are registered in the US Patent & Trademark
Office. Symbol is a registered trademark of Symbol Technologies, Inc. All other product or service names are the property of their
respective owners. ©Motorola, Inc. 2007. All rights reserved. For system, product or services availability and specific information
within your country, please contact your local Motorola office or Business Partner. Specifications are subject to change without notice.