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Oracle WM Installation Experience July 15, 2002

NorCal OAUG Seminar WMS/Shipping/Distribution. Oracle WM Installation Experience July 15, 2002. Experience Development for 2 separate WMS Experience – 10+ years in Supply Chain WMS Integration/Interface Development ERP, MHE, TMS, SCEM Project Management Assessments and Optimization

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Oracle WM Installation Experience July 15, 2002

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  1. NorCal OAUG Seminar WMS/Shipping/Distribution Oracle WM Installation ExperienceJuly 15, 2002

  2. Experience Development for 2 separate WMS Experience – 10+ years in Supply Chain WMS Integration/Interface Development ERP, MHE, TMS, SCEM Project Management Assessments and Optimization Software Selection Studies (Right Fit) Supply Chain Strategy Introductions

  3. Designs and Distributes quality decorative country items for the home. Implementing Oracle WM (phased approach), along with Order Management, Inventory, AR, AP, PO Goals/Benchmarks Project Tips Overview

  4. Total Logistics Cost See next slide for a further breakdown Source: Collection of Multiple Studies and CIBER’s Experience - “Best Practice Data”

  5. Total Warehouse Cost Source: Transportation and Distribution - “Best Practice Data”

  6. Improved Space Utilization 20 to 30% System Directed Putaways Enhanced Consolidation Cross-Docking Opportunities Reduction of Scrap 13 to 30% WMS Picking Logic through system monitored shelf life Reduction in Inventory Loss Reduction in Mis-Ships WMS Benefits - Quantifiable

  7. Labor Productivity 50-60% of warehouse workers’ time spent traveling Benchmarked to reduce 10% – 15% for phase I Benchmarked to reduce another 10% – 15% for phase II Optimize total workload Optimize work force task assignment WMS Benefits - Quantifiable

  8. Picking Productivity Increases 16 to 25% Optimized Picking route Use of Labor Standards Reduction in Customer Returns 11 to 25% Less Picking Errors WMS Benefits - Quantifiable

  9. Improved Customer Service Reduced Customer Errors Order Accuracy Complaints Damaged Sales Promises Kept Reduced Customer LeadTimes Order Lead Time (Order Placement - Delivery Date) Real Time Visibility Summary of Improvement Goals Improved Customer Service

  10. Summary of Improvement Goals Reduced Operating Cost Reduced Operating Cost • Reduced Labor Cost • Worker Productivity • Improved Space and Equipment Utilization • Cube Utilization (Facility and Locations) • Travel Distance • Increased Capacity • % Fill Rate • Inventory Accuracy by Location • Reduce Capital Investments • Increased Inventory Turns • Carrying Cost (Cost of Money)

  11. Enhanced Performance Measurements Performance Information Systems Management Reporting Tools Productivity Tracking Distribution Statistics Operational Control System Real-time Visibility to Performance Concerns Warehouse Management Control Board Summary of Improvement Goals Enhanced Performance Measurement

  12. Executive Sponsorship and Commitment Set realistic goals Team effort – from end-user to executive Document, Document, Document Operations and Technical Test every situation imaginable Do not underestimate training Create evaluation tools before go-live Take ownership Project Tips

  13. Thank You! Brent Peters Ciber (CBR) Supply Chain Practice Director (513) 263-6453 bpeters@ciber.com

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