Oracle WMS

1. Oracle WMS Warehouse Management System

2. Objectives Explain the basic concepts of WMS Describe the overall functionality of WMS Describe the key enabling features of WMS

3. Agenda Overview of WMS Inbound Logistics Outbound Logistics Material Statuses Rules Engine LPNs Task Management Labeling

4. Overview of Oracle WMS WMS is a component of Oracle�s Supply Chain Management and Manufacturing solution. WMS is designed to support highly automated environments with RF hand-held computers and material handling systems. WMS expands the existing functionality of the e-Business suite. Note: Any RF device that supports TCP/IP and Telnet can be used. Oracle Inventory, Oracle Shipping Execution and Oracle Receiving must be setup prior to using Oracle WMS. WMS has the same setup steps as Inventory with some attribute modification. WMS is tightly integrated with Oracle Inventory adding enhancement to its functionality Note: Any RF device that supports TCP/IP and Telnet can be used. Oracle Inventory, Oracle Shipping Execution and Oracle Receiving must be setup prior to using Oracle WMS. WMS has the same setup steps as Inventory with some attribute modification. WMS is tightly integrated with Oracle Inventory adding enhancement to its functionality

5. Overview of Oracle WMS Describing Warehouse Management This graphic represents the existing Oracle Manufacturing Applications, the new Oracle Warehouse Management, and their interaction with Mobile Supply Chain Applications. Mobile Supply Chain Applications enable users to perform manufacturing and warehouse management tasks through the use of radio frequency, hand-held devices. Oracle Warehouse Management Features To help you better manage your warehouse, Oracle Warehouse Management introduces the following new features: Task management Tracking material with License Plate Numbers (LPNs) User-configurable rules engine, which enables you to customize your warehouse, such as picking and put away, and compliance labeling Advanced inventory and materials management The Oracle WMS is heavily integrated with and extends some of the functionality that currently exists in the Oracle Manufacturing Applications.Describing Warehouse Management This graphic represents the existing Oracle Manufacturing Applications, the new Oracle Warehouse Management, and their interaction with Mobile Supply Chain Applications. Mobile Supply Chain Applications enable users to perform manufacturing and warehouse management tasks through the use of radio frequency, hand-held devices. Oracle Warehouse Management Features To help you better manage your warehouse, Oracle Warehouse Management introduces the following new features: Task management Tracking material with License Plate Numbers (LPNs) User-configurable rules engine, which enables you to customize your warehouse, such as picking and put away, and compliance labeling Advanced inventory and materials management The Oracle WMS is heavily integrated with and extends some of the functionality that currently exists in the Oracle Manufacturing Applications.

6. Overview of Inbound Logistics Describing Inbound Logistics Receiving - The three standard receipt modes in Oracle Purchasing are also used in WMS. These include Standard Receipt, Direct Receipt, and Inspection Receipt. WMS also handles receipt types of RMA, PO, Internal Requisitions, and Intransit Shipments. Receipt Check-In - According to receiving tolerances (date, quantity, and ship-to-location), incoming material is checked against expected receipts. Quality Inspection - Incoming material is inspected based on supplier, product, or an organization level default. Bar Code Printing � You can print product or packaging labels on demand. Directed Put Away and Storage Optimization - Provides warehouse personnel with an available storage location for put away, by matching the material handling constraints and item/inventory attributes using real-time information. Cross Docking - Redirects inbound items by checking for backordered sales orders at the time of receipt. If necessary, the system will route the product directly from the receiving dock to a staging lane or shipping dock without placing product in a put away location.Describing Inbound Logistics Receiving - The three standard receipt modes in Oracle Purchasing are also used in WMS. These include Standard Receipt, Direct Receipt, and Inspection Receipt. WMS also handles receipt types of RMA, PO, Internal Requisitions, and Intransit Shipments. Receipt Check-In - According to receiving tolerances (date, quantity, and ship-to-location), incoming material is checked against expected receipts. Quality Inspection - Incoming material is inspected based on supplier, product, or an organization level default. Bar Code Printing � You can print product or packaging labels on demand. Directed Put Away and Storage Optimization - Provides warehouse personnel with an available storage location for put away, by matching the material handling constraints and item/inventory attributes using real-time information. Cross Docking - Redirects inbound items by checking for backordered sales orders at the time of receipt. If necessary, the system will route the product directly from the receiving dock to a staging lane or shipping dock without placing product in a put away location.

7. Directed Put Away and Storage Optimization WMS supports flexible rules based directed put away. The benefits of directed put away and storage optimization include the following: Minimizing warehouse storage fragmentation Increasing storage utilization Increasing efficiency of warehouse operations Describing Direct Put Away and Storage Optimization Oracle WMS determines the optimal storage location based on a set of user configurable rules and strategies such as directing the user to: Put away to the nearest empty picking slot Fill pick locations first Replenish existing locations based on available space Put items away based on item cube and weight When you choose a put away location other than the one suggested, you will be required to select a �reason.� A workflow action can be generated to notify managers of discrepancies or to schedule cycle counts for example. Describing Direct Put Away and Storage Optimization Oracle WMS determines the optimal storage location based on a set of user configurable rules and strategies such as directing the user to: Put away to the nearest empty picking slot Fill pick locations first Replenish existing locations based on available space Put items away based on item cube and weight When you choose a put away location other than the one suggested, you will be required to select a �reason.� A workflow action can be generated to notify managers of discrepancies or to schedule cycle counts for example.

8. Cross Docking Redirects inbound items to the shipping dock. The following criteria are used to determine when to cross dock: Cross Docking must be enabled in the organization. Backordered sales order lines for the item must exist. Backorders fulfilled in userdefined priorities. Describing Cross Docking The following criteria are used to determine when to cross dock: Cross docking must be enabled in the organization. Backordered sales order lines for the item must exist. WMS does cross dock according to user defined priorities that you determine when setting up Oracle Shipping. If necessary, the WMS routes products directly from the receiving dock to a staging lane without placing product into a put away location. Before choosing a warehouse put away location, Oracle WMS attempts to supply any sales order demand from the staged receiving supply. As a result, unnecessary material handling and movement are reduced, which, in turn, helps reduce operational costs and streamline the order fulfillment process. Cross-Docking is also available from WIP job completions. Describing Cross Docking The following criteria are used to determine when to cross dock: Cross docking must be enabled in the organization. Backordered sales order lines for the item must exist. WMS does cross dock according to user defined priorities that you determine when setting up Oracle Shipping. If necessary, the WMS routes products directly from the receiving dock to a staging lane without placing product into a put away location. Before choosing a warehouse put away location, Oracle WMS attempts to supply any sales order demand from the staged receiving supply. As a result, unnecessary material handling and movement are reduced, which, in turn, helps reduce operational costs and streamline the order fulfillment process. Cross-Docking is also available from WIP job completions.

9. Overview of Outbound Logistics Defining Outbound Logistics Trip and delivery planning - Used to establish an instance of a specific freight carrier that contains one or more deliveries, and is departing from a particular location. Appointment dock assignment - Enables warehouse managers to schedule outbound carrier appointments, dock doors availability, and staging lane usage within the warehouse. Pick methodologies - Enables you to select different pick methods for different order picking needs. Directed picking - Enables orders to be picked using either mobile RF applications or paper based pick slips. Cartonization - Selects appropriate number and size of containers required during the order fulfillment process. Packing - You can pack containers with multiple levels of nesting and notify users of special packing instructions for an order. Packing can be performed during picking or as an independent operation. Compliance labeling � Enables you to print specific labels using compliance labeling rules that you set up. Shipment stage/consolidation and loading - Enables you to consolidate multiple partially filled containers/LPNs into fewer, and better optimized, containers. Shipment verification and close - Immediately informs Oracle WMS of what quantities, items, and containers have been picked or loaded and which ones should be deducted from inventory. Pick wave selection - Provides a graphical query manager that enables you to build a pickwave based on several combinations of selection criteria including order lines, containers, deliveries, trips, consignee, ship method, ship-to, order revenue value, customer delivery schedules, carriers, and so on. Pick release task generation and inventory allocation - Pick tasks are sequenced by the wave pick generation and are prioritized according to user definable rules such as pick methodology, work load, pick routing, inventory allocation rules, and so on. WMS control board - The WMS Control Board provides warehouse management with a real-time snapshot of the work progress across the multiple areas of the warehouse, enabling the warehouse manager to flex his workforce to an area that might be lagging behind other areas. Defining Outbound Logistics Trip and delivery planning - Used to establish an instance of a specific freight carrier that contains one or more deliveries, and is departing from a particular location. Appointment dock assignment - Enables warehouse managers to schedule outbound carrier appointments, dock doors availability, and staging lane usage within the warehouse. Pick methodologies - Enables you to select different pick methods for different order picking needs. Directed picking - Enables orders to be picked using either mobile RF applications or paper based pick slips. Cartonization - Selects appropriate number and size of containers required during the order fulfillment process. Packing - You can pack containers with multiple levels of nesting and notify users of special packing instructions for an order. Packing can be performed during picking or as an independent operation. Compliance labeling � Enables you to print specific labels using compliance labeling rules that you set up. Shipment stage/consolidation and loading - Enables you to consolidate multiple partially filled containers/LPNs into fewer, and better optimized, containers. Shipment verification and close - Immediately informs Oracle WMS of what quantities, items, and containers have been picked or loaded and which ones should be deducted from inventory. Pick wave selection - Provides a graphical query manager that enables you to build a pickwave based on several combinations of selection criteria including order lines, containers, deliveries, trips, consignee, ship method, ship-to, order revenue value, customer delivery schedules, carriers, and so on. Pick release task generation and inventory allocation - Pick tasks are sequenced by the wave pick generation and are prioritized according to user definable rules such as pick methodology, work load, pick routing, inventory allocation rules, and so on. WMS control board - The WMS Control Board provides warehouse management with a real-time snapshot of the work progress across the multiple areas of the warehouse, enabling the warehouse manager to flex his workforce to an area that might be lagging behind other areas.

10. Directed Picking The directed picking process enables you to pick orders using either mobile RF devices or paper pick slips. With directed picking you can: Direct order pickers to specific pick-from locations based on user defined picking rules Assign pick to deplete in order to free up space Defining Directed Picking Oracle WMS offers directed picking which recommends pick locations, optimal pick routines, and is based on the subinventory or locator pick unit of measure and inventory allocation rules. Directed picking simply recommends a picking location, these recommendations can be overridden.Defining Directed Picking Oracle WMS offers directed picking which recommends pick locations, optimal pick routines, and is based on the subinventory or locator pick unit of measure and inventory allocation rules. Directed picking simply recommends a picking location, these recommendations can be overridden.

11. Pick Methodologies Picking methodologies determine how the system assigns picking tasks to warehouse operators. Pick methodologies include the following: Cluster picking Order picking Zone picking Bulk picking User-defined picking Wave Picking Pick and Pass/Label picking Describing Pick Methodologies When selecting picking methods, consider your warehouse�s task assignments, equipment capacities, subinventories, and business rules. Cluster picking: The system dispatches tasks line by line; each line release could be assigned to a different person. Order picking: The system assigns picks to an operator one order at a time. One order will be picked by a single picker. Zone picking: The system assigns picks to an operator for a given order in a given subinventory. Thus, a single user will be given all tasks for an order that are sourced from the same subinventory. Bulk picking: The system groups tasks to pick the same item that are sourced from the same subinventory and locator so that the operator sees only one task that might represent picks for several orders . User-defined picking: Managers define their own pick grouping, based on the criteria that they specify. For more information about pick methodologies, see the Oracle Warehouse Management system online help: (Help) Oracle Manufacturing Applications > Oracle Warehouse Management System > Performing WMS Outbound Logistics > Describing Pick Methodologies Describing Pick Methodologies When selecting picking methods, consider your warehouse�s task assignments, equipment capacities, subinventories, and business rules. Cluster picking: The system dispatches tasks line by line; each line release could be assigned to a different person. Order picking: The system assigns picks to an operator one order at a time. One order will be picked by a single picker. Zone picking: The system assigns picks to an operator for a given order in a given subinventory. Thus, a single user will be given all tasks for an order that are sourced from the same subinventory. Bulk picking: The system groups tasks to pick the same item that are sourced from the same subinventory and locator so that the operator sees only one task that might represent picks for several orders . User-defined picking: Managers define their own pick grouping, based on the criteria that they specify. For more information about pick methodologies, see the Oracle Warehouse Management system online help: (Help) Oracle Manufacturing Applications > Oracle Warehouse Management System > Performing WMS Outbound Logistics > Describing Pick Methodologies

12. Compliance Labeling Using a set of user-defined rules, compliance labeling selects the appropriate label format and content for a specific task. Specifically, compliance labeling does the following: Integrates to 3rd party label design and printing systems. Prints to either a local or remote location, based on user or system directions. Generates any number of unique formats for a single warehouse label. Describing Compliance Labeling Compliance Labeling enables you to print customer defined labels for all outgoing containers. These labels might include customer specific graphics or logos, or trademarks. Compliance labeling can also enables you to print carrier compliance labels including waybill numbers, weight, and destination.Describing Compliance Labeling Compliance Labeling enables you to print customer defined labels for all outgoing containers. These labels might include customer specific graphics or logos, or trademarks. Compliance labeling can also enables you to print carrier compliance labels including waybill numbers, weight, and destination.

13. WMS Control Board Defining WMS Control Board The Task Manager enables the user to manage the work tasks within the warehouse by activity type and resource. The graphical interface displays tasks and activities in a variety of user-defined formats, from line and bar graphs, to three dimensional displays of the warehouse. The Task Manager monitors a wave�s progress, replenishment, picking, packing, consolidation, loading, and shipping statuses. The Task Manager also informs management when activities, such as trucks loaded, high priority orders picked, and back-ordered items received are completed. Defining WMS Control Board The Task Manager enables the user to manage the work tasks within the warehouse by activity type and resource. The graphical interface displays tasks and activities in a variety of user-defined formats, from line and bar graphs, to three dimensional displays of the warehouse. The Task Manager monitors a wave�s progress, replenishment, picking, packing, consolidation, loading, and shipping statuses. The Task Manager also informs management when activities, such as trucks loaded, high priority orders picked, and back-ordered items received are completed.

14. License Plate Numbers A license plate number (LPN) represents any object that exists in a location and holds items. All material received through Oracle WMS is associated with a unique LPN. This enables material to easily be tracked and transacted throughout your warehouse without scanning the item, quantities, lots or serial numbers. Explaining License Plate Numbers (LPNs) Oracle WMS provides full visibility to inventory items that are stored in LPNs. An LPN might be a container, but it does not need to represent a physical entity. It could be as simple as a label on a collection of items. Oracle WMS enables users to track, transact, and nest (combine) LPNs and their contents. Generating LPNs When you define your organization, you must classify your warehouse as an Inventory organization, and must select the WMS Enabled check box before enabling LPNs for your warehouse. Explaining License Plate Numbers (LPNs) Oracle WMS provides full visibility to inventory items that are stored in LPNs. An LPN might be a container, but it does not need to represent a physical entity. It could be as simple as a label on a collection of items. Oracle WMS enables users to track, transact, and nest (combine) LPNs and their contents. Generating LPNs When you define your organization, you must classify your warehouse as an Inventory organization, and must select the WMS Enabled check box before enabling LPNs for your warehouse.

15. Material Status Material status is the list of allowed and disallowed transactions for a particular lot, serial, subinventory or locator. Material status enables you to control the movement and usage of material for portions of your inventory. Material status enables you to control which transactions are valid for a particular item lot or item serial. Explaining Material Status In the case that a material status is assigned to a subinventory or locator, the material is not assigned the material status of the subinventory or locator, rather, it takes on the behavior indicated by the material status at the subinventory or locator level. The set of disallowed transactions is cumulative, therefore if a lot controlled item with lot status Hold is in a locator with locator status Inactive, then transaction types disallowed by Hold, in addition to transaction types disallowed by Inactive, will not be permitted for that lot. Explaining Material Status In the case that a material status is assigned to a subinventory or locator, the material is not assigned the material status of the subinventory or locator, rather, it takes on the behavior indicated by the material status at the subinventory or locator level. The set of disallowed transactions is cumulative, therefore if a lot controlled item with lot status Hold is in a locator with locator status Inactive, then transaction types disallowed by Hold, in addition to transaction types disallowed by Inactive, will not be permitted for that lot.

16. Samples of Material Statuses Explaining Samples of Material Statuses This example describes four typical material status's and what actions they allow or disallow: Active - This is a typical default for your warehouse. It does not disallow any transaction types. Hold - You might use this status for material that needs to be inspected or whose quality is suspect. No transactions could take place on this material until it is changed to a different status. Immature - This status would be useful for material that needs to age in the warehouse before being picked or shipped on an order to a customer. You may want to allow internal orders to move the material around your distribution chain, but picking and shipping this material for orders to customers should be prevented. Almost Mature - This material has a very short aging process, or is nearing the end of its immaturity. By assigning material this particular status, you may enable that material to be picked and staged, ready to ship, but prevent the material from being shipped. Then, as soon as the material is completely matured, it can be assigned a new status of Active and shipped immediately.Explaining Samples of Material Statuses This example describes four typical material status's and what actions they allow or disallow: Active - This is a typical default for your warehouse. It does not disallow any transaction types. Hold - You might use this status for material that needs to be inspected or whose quality is suspect. No transactions could take place on this material until it is changed to a different status. Immature - This status would be useful for material that needs to age in the warehouse before being picked or shipped on an order to a customer. You may want to allow internal orders to move the material around your distribution chain, but picking and shipping this material for orders to customers should be prevented. Almost Mature - This material has a very short aging process, or is nearing the end of its immaturity. By assigning material this particular status, you may enable that material to be picked and staged, ready to ship, but prevent the material from being shipped. Then, as soon as the material is completely matured, it can be assigned a new status of Active and shipped immediately.

17. WMS Rules Engine Based on user defined rules, the rules engine can: Suggest material location for picking Suggest put away location for License Plate Numbers (LPNs) Assign a task type to a task Assign a cost group to transactions Format labels for printing

18. Rule Types Explaining Rule Types The WMS Rules Engine includes five rule types: Picking - Picking rules make material allocations and directs operators to pick materials from specific locators. Put away - Put away rules directs operators to put newly received material into the most appropriate locators. Task Type - Task type assignment captures the skill sets and equipment required for a warehouse task so that work is only assigned to appropriate users. Cost Group - Cost groups capture the material valuation accounts necessary for tracking inventory value. Cost group rules assign valuation to material. Labeling - Labeling rules enable you to print customized labels. For example, you may have a customer who requires bar coding, special format, or special sized labels. Labeling rules enable you to accomplish these types of specific tasks. Explaining Rule Types The WMS Rules Engine includes five rule types: Picking - Picking rules make material allocations and directs operators to pick materials from specific locators. Put away - Put away rules directs operators to put newly received material into the most appropriate locators. Task Type - Task type assignment captures the skill sets and equipment required for a warehouse task so that work is only assigned to appropriate users. Cost Group - Cost groups capture the material valuation accounts necessary for tracking inventory value. Cost group rules assign valuation to material. Labeling - Labeling rules enable you to print customized labels. For example, you may have a customer who requires bar coding, special format, or special sized labels. Labeling rules enable you to accomplish these types of specific tasks.

19. Picking Rules

20. Put Away Rules Explaining Put Away Rules Put away rules are used to advise the operator of an optimum storage location for received material. For example, a put away rule can be defined to ensure that an item that requires a storage temperature at or below 32 degrees is put away into a refrigerated subinventory and locator. Explaining Put Away Rules Put away rules are used to advise the operator of an optimum storage location for received material. For example, a put away rule can be defined to ensure that an item that requires a storage temperature at or below 32 degrees is put away into a refrigerated subinventory and locator.

21. Task Type Assignment Rules

22. Cost Group Rules

23. Labeling Rules

24. Labeling Rules (Cont.)

25. Tasks and Task Management A task is defined as a unit of work. Task management is the process of effectively distributing and allocating tasks within a warehouse to maximize labor productivity and equipment utilization. Provides insights into labor productivity and accurate methods for measuring work output. Uses real time data to compute and report on various tasks such as productivity, employee and equipment utilization, available jobs, and resource scheduling. The WMS Control Board is used to monitor productivity and utilization.

26. Task Management There are three tasks that are currently supported by WMS. These include: Picking tasks Replenishment tasks Put away tasks (not currently dispatched by the system)

27. Task Resources Resources are defined to group employees with similar skills together, and to group equipment with similar characteristics together. Resources are assigned to task types. Explaining Task Resources Employees or equipment are assigned to defined resource. For example, two different forklifts can be assigned to one resource, and this resource is then assigned to a task type. Explaining Task Resources Employees or equipment are assigned to defined resource. For example, two different forklifts can be assigned to one resource, and this resource is then assigned to a task type.

28. Compliance Labeling Enable the system to suggest the label format and information content that are used to print a given label Print labels automatically using Business Flows transactions Print labels according to rules based on customer, item, order type or carrier.

29. WMS Label Types Material label Serial label LPN Label LPN Contents label LPN Summary label Location label Shipping label Shipping Contents label WIP Content label Material label: The Material label provides information about an item, including the item�s lot information, if applicable. Serial label: The Serial label provides information specific to a serial of an item. LPN label: The LPN label provides information about the License Plate Number (LPN). This label does not contain content information. You typically use the LPN label to identify LPNs as they travel throughout the warehouse. LPN Contents label: The LPN Contents label provides information about the LPN and its contents. You typically use this label to identify LPNs as they travel throughout the warehouse. LPN Summary label: The LPN Summary label provides information about the LPN and a summary view of its contents. The LPN is exploded and all of its contents are summarized. That is, if an LPN contains multiple LPNs, then all of the contents of all the nested LPNs will be summed by Item, Revision, and Lot on this label. Location label: The Location label provides information about specific warehouse locators. Shipping label: The Shipping label provides information for an outbound shipment. It does not include information about the contents of the shipment, rather it includes only addresses and information that is pertinent to the shipment itself. Shipping Contents label: The Shipping Contents label provides information for an outbound shipment. It includes information for all of the contents that are part of that shipment. WIP Content label: The WIP Content label provides information for WIP components when they are picked for a WIP job. It includes component number, serial, lot, job number, assembly number, start date, and so on. Material label: The Material label provides information about an item, including the item�s lot information, if applicable. Serial label: The Serial label provides information specific to a serial of an item. LPN label: The LPN label provides information about the License Plate Number (LPN). This label does not contain content information. You typically use the LPN label to identify LPNs as they travel throughout the warehouse. LPN Contents label: The LPN Contents label provides information about the LPN and its contents. You typically use this label to identify LPNs as they travel throughout the warehouse. LPN Summary label: The LPN Summary label provides information about the LPN and a summary view of its contents. The LPN is exploded and all of its contents are summarized. That is, if an LPN contains multiple LPNs, then all of the contents of all the nested LPNs will be summed by Item, Revision, and Lot on this label. Location label: The Location label provides information about specific warehouse locators. Shipping label: The Shipping label provides information for an outbound shipment. It does not include information about the contents of the shipment, rather it includes only addresses and information that is pertinent to the shipment itself. Shipping Contents label: The Shipping Contents label provides information for an outbound shipment. It includes information for all of the contents that are part of that shipment. WIP Content label: The WIP Content label provides information for WIP components when they are picked for a WIP job. It includes component number, serial, lot, job number, assembly number, start date, and so on.

30. Summary Rules Engine Compliance Labeling Cross Docking Task Management Barcoding Enabled Rules engine: The Oracle WMS Rules engine is a repository of your business practices and restrictions that allow the system to suggest the best process for a warehouse function. � Compliance Labeling: Oracle WMS enables you to suggest a label format based on the customer, item, order type, carrier, or other entities related to the material. The actual printing of the label is performed by a third party. Label generation and format selection are performed within Oracle WMS, either using business flows or manually through the MSCA system. Cross Docking Task Management: WMS Control Board Barcoding EnabledRules engine: The Oracle WMS Rules engine is a repository of your business practices and restrictions that allow the system to suggest the best process for a warehouse function. � Compliance Labeling: Oracle WMS enables you to suggest a label format based on the customer, item, order type, carrier, or other entities related to the material. The actual printing of the label is performed by a third party. Label generation and format selection are performed within Oracle WMS, either using business flows or manually through the MSCA system. Cross Docking Task Management: WMS Control Board Barcoding Enabled