Warehouse Management Systems,

And the Small to Midsize Company

A CEI Logistics Presentation

INTRODUCTION

 Joe W. Jackson

 CEI Logistics Senior Consultant

 16 Years Experience in DC Systems Integration

 Multiple Small to Medium Company WMS Implementations

REASONS FORTUNE 500 COMPANIES IMPLEMENT WMS…

 Inventory Control

 Cycle Time Reduction

 Order Accuracy

 Labor Productivity

 Real-Time Information About DC Performance

…SOUND FAMILIAR?
REGARDLESS OF YOUR COMPANY SIZE WHAT YOU REALLY WANT IS:

CONTROL
CONTROL OPTIONS…

 Locator System

 Transaction Processor

 Inventory Control System

 Warehouse Management System

 ERP System
HOW DO YOU DETERMINE IF A WMS IS RIGHT FOR YOUR OPERATION…

 Operational Assessment/Business Case

– R.O.I.

– Competitive Advantage

– Long Term Profitability

– Industry Pressure

– Customer Compliance
RESOURCES REQUIRED TO IMPLEMENT A WMS…

 Project Team

– Executive
– Operations
– Warehouse
– Corporate IS
– Inventory Control
– Customer Service
– Vendor Application Team
– Corporate Product “Owner”
– Time Committed Project Manager

 Systems Requirement Document (SRD)

…HOW DO YOU MANAGE ALL THESE RESOURCES?

IMPLEMENTATION PARTNER…A PROVEN CONCEPT

 Implementation Partner

– Time Dedicated Resource

– Experienced In WMS Implementation

– Supplements The Company’s Project Team

– Project Focused

– Impartial Perspective Of All Project Phases

FOUR PHASE APPROACH TO SUCCESS

 Phase One - Operations Assessment

 Phase Two - Vendor Selection

 Phase Three - Development/Configuration

 Phase Four - Implementation

PHASE 0NE – OPERATIONS ASSESSMENT

 Process Maps
- Document current processes
- Identify opportunities for improvement

 Activity Profiling
- Capture peak transaction volumes by functional area
- Interview key stake holders to develop vision of future requirements
- Project activity over planning horizon to create design database

 Future Business Requirement

- Develop “to-be” process maps to define future operations
- Identify IT functionality required to support future processes

 IT Gap Analysis
- Compare desired “to be” functionality to existing system functionality
- Document gaps in current system

 New System Justification

- Define recommended solution based on gaps identified
- Develop business case for new system / system enhancements as
appropriate

…MOVE TO PHASE TWO?

PHASE TWO – VENDOR SELECTION

 Develop Functional Specification

- The information gathered in the Assessment Phase is
developed into an application specification

 Vendor Pre-Qualification
- Vendors are pre-qualified based on their experience, capabilities,
and project capacity

 Bid Process
- The formal Functional Specification is extended to the qualified
vendor list for costing

 Evaluation Matrix
- All vendor offerings are evaluated on the established criteria, and
a recommended supplier selected

 Vendor Selected
- A contract is offered to the prevailing supplier. This is the
beginning of the Phase - 3 activity (Software Development)
PHASE THREE – DEVELOPMENT / CONFIGURATION

 Systems Requirement Document

- The Systems Requirement Document (SRD) defines the complete
software solution deliverable including client and supplier obligations
The Functional Specification is the reference document for this activity

 Master Schedule
- The final element of the SRD is the project Master Schedule. This
includes all mission critical milestones, and dates for required
deliverables

 Application Configuration / Development

- The advocate manages software vendor with regard to final
functionality and required modifications

 Site Preparedness Audit

- Formal activity to insure both vendor and client are prepared
for installation and testing
PHASE FOUR – IMPLEMENTATION

 Site Coordination
- Actual on-site installation and testing of solution

 Installation

 Project Management

 Application Training
- On-Site training of the user group

 System Acceptance Testing

- Solution is tested thoroughly for both functionality and reliability,
based on an established test plan

 On - Going System Evaluation

- Through annual check-ups and discovered opportunities for
improvement, the assures a solution that maintains it’s usefulness
through several years of business cycles
REMEMBER…

 Do Not Automate “Bad” Processes

 Focus On The Project, Not The Product

 With A WMS, Weigh Conformance Against Customization

 It’s the complexity, not the size of the operation that matters

 WMS Can Be Deployed In Almost Any Firm, Regardless Of Size

FOUR PHASE ROAD MAP…

Phase 1 - LIS Assessment

Process Activity Future Business IT Gap New System

Maps Profiling Requirement Analysis Justification

Phase 2 - Vendor Selection

Functional
Specification Vendor Bid Process Evaluation Contract
Document Pre-Qualification Management Matrix Awarded

Phase 3 - Software Development

Systems Master Software Site

Requirement Schedule Development Preparedness
Document Support Audit

CEI Logistics’
Implementation Client Client
Partner Advocacy
Advocacy

Phase 4 - Implementation Services

Site Coordination, System On-Going

Application
Installation And Acceptance System
Training
Project Management Testing Evaluation

Implementation Partner & User Vendor

Questions ?