AIM Warehousing v3.0: Managing Wave Picking & Pick Planning

1. AIM Warehousing v3.0: Managing Wave Picking & Pick Planning Kyle Bethke kyb@qad.com

2. Introduction & Agenda Advanced Inventory Management

3. Agenda • Release History and AIM Overview • Opportunities and Challenges • Lean Distribution • Lean Warehousing Step 1: Batch picking • Lean Warehousing Step 2: Wave Planning

4. AIM History of Releases • Current Releases: AIM 2.3a (Oct ‘04) • Batch (Wave) Picking • Next Release: AIM 2.3b and AIM 2.3b SSD • New MFG/PRO SP’s supported in 2.3b sub-release • Minor enhancements • language support (FR, DU, GE, SP, PL, PO) • Next: AIM v3.0 and AIM 2.4a SSD • Wave Planning • RF Containerization • RF Truck Loading • Truck Shipment • RF Bar-code Identifiers • AIM v3.0 is the “biggest” release for many years

5. Warehouse Management – Scope through v3.0 RF Task Management Other Features Maximum Flexibility Carrier & Lane Management Picking Receipts AIM New - Wave Planning RF Container Move & Ship Flexible Replenishment Put-away Logic Cross Docking

6. Lean Distribution • Objectives: • get an agile, synchronized and responsive to customer needs system • Serve customers faster, with less space, less inventory and with more accuracy • Eliminate waste in warehousing operations, e.g Pick Tasks Pick Task Simplification

7. Lean Warehousing • Eliminate Waste: • Time: • Reduce Travel distances by using a Forward Picking Area • Reduce Travel distances by organizing the travel path sequences • Reduce truck Waiting time at the dock (consistent with US HOS regulations) • Organization: • Spread order lines to fulfill accross workday based on Truck appointments • Avoid aisle congestion by spreading workers in the warehouse • Space: • Reduce Shipping Zone space requirements • Reduce Inventory requirement by Streamlining Picking Operations • Streamline operations • Synchronized Replenishement of Forward Picking zone to avoid picking interruptions • Spread the workload accross the entire working day based on truck schedules

8. The QAD Solution Advanced Inventory Management

9. Lean Warehousing • Lean Warehousing Step 1: Batch Picking • Available since AIM 2.3a • Enhanced in AIM 2.3b • Lean Warehousing Step 2: Wave Planning • Will be available in AIM v3.0 • In production at an Eaton Distribution Center, Cleveland TN • General Availability April ‘06

10. Lean Warehousing Step 1: Batch Picking • Dedicated for companies working with small items, small volumes but lots of Order lines Pick Path 6 5 4 3 2 A B C D 1 Push Cart with Totes or Boxes

11. Batch Picking Enhancements (2.3b) • User Location: stock is moved to the Cart (User Location) upon picking • Multi-Box Picking: ability to pick multiple boxes to reach the quantity required • Enhanced visibility on what is on the User Cart • Drop off/All at any time during Batch Picking process to empty the cart

12. Lean Warehousing Step 2: Wave Planning • Functionality dedicated for Warehouses & Distribution Centers • A Wave is a collection of Orders we want to pick/ship at a certain point in time • The Objective of Wave Planning is to have a continuous throughput across replenishment, picking and shipment activities • 3 Steps in executing this NEW FUNCTIONALITY • Wave Selection: we create the wave and select the orders which belong to the wave (often by Carrier, appointment) • Wave Replenishment: We move to the picking area all the stock required for the wave • WaveRelease: we create the picking tasks and assign them to the pickers • Additional Objectives: • Shipping Lane Management • Workload Calculation per working aisle

13. Lean Warehousing Step 2: w/o Wave Planning • Worst case scenario: • Warehouse w/ Picking Everywhere • No Travel Sequences • No Order Prioritization Increases Travel Distances

14. Reserve Area Picking Area Lean Warehousing Step 2: New Wave Planning • Better Case Scenario: • Reduced Picking area = Forward Picking Area • Replenishment from Reserve Area (Separate or above Forward Picking Area for Fast Movers) • Decreased Travel Distances • Decreased Extracting Time (Items in accessible levels only) • Organized Travel Picks through Travel Sequences (Batch Picking)

15. Step 2: Wave Replenishment Step 3: Wave Release Step 4: Truck Loading New Wave Planning Execution Reserve Area Picking Area Shipping Lanes Step 1: Wave Selection Docks

16. Wave Replenishement

17. Reserve Area Optimized Pick Sequence Pick Face Pick Face

18. Other Key features of Wave Planning • Allow Selection and handling of Sales Orders (incl. Customer Schedules) and Distribution Orders in one common flow • Allow to have carrier at SO/DO Line level • Different Pre-shippers by carriers • Selection of Orders by Carrier/Route/Profile on top of Due Date/Order/ship-to • Entire visibility of the Wave Status • When a Wave is Ready/Complete/Need replenishment… • How many open/complete tasks per Wave

19. Also available in v3.0 • RF Containerization • For both SO and DO (!) • Recommended Pallet for consolidation • Check on the pre-shipper (SO)/Ship-to (DO) • Allows scan a box in one location to containerize on a pallet in another location • Allows Box removal • Order Status Detail Inquiry • Show the status of all orders (e.g. on a Wave): Allocated/Picked/on Cart/Consolidation/Packed/Staged/Loaded • Drill-down on containerization structure • RF Container Move • Movement of a container with all containers and detail allocation • Used for truck loading e.g. • RF Bar-code prefixes • Allows define barcode prefix (up to 4 digits) for each barcode type • Generic requirements in some industries

20. But what does it look like?

21. Step 1: Wave Selection

22. Wave Status Reporting/Inquiry

23. Step 2: Wave Replenishment

24. Step 3: Wave Release

25. Checking on Wave Status…

26. RF Containerization

27. RF Container Move & Truck Shipment

28. Thank You! Contact: kyb@qad.com