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n six to 18 months, depending on the inefficiencies of the current operation and how much safety stock was needed to cover daily operations.” Source: Total Supply Chain Step 3 Consider RF Functionality RF supports improves warehouse bin accuracy ? Bin accuracy 98% is possible Reduces order fill process cycle time RF projects often have a 1 year or less payback period Source: Intermec Compare current receipt process to the time saved when the task is aided by automatic data collection (ADC) 3 Consider RF Functionality: Example Asis ? 1,000 pallets at five minutes / pallet = 5,000 minutes With two minutes saved per pallet ? 2 minutes * 1,000 pallets = 2,000 minutes ? 2,000 / 480 minutes worked by each receiver per day = receivers saved from the pallet receiving process Step 4 Training Resources and Schedule Resources to evaluate, guide and support a WM solution ? A fulltime, dedicated WM resource is critical ? This may or may not be the same IM resource Training schedule ? A WM solution will require a certain level of IM training ? WM training will vary based on the degree of functionality Support resources ? Consider a single resource for IM and WM if possible 5 Optimization Opportunities Picking operations and inventory accuracy ? What are your baseline requirements ? What is the volume of activity ? Evaluate picking paths and demand ? Look at your accuracy numbers over a period of time – Perhaps monthly, quarterly, annually Material handling labor costs Space utilization improvements Packing tasks ? Can you benefit from packing while picking What is the BEST Stock Management Solution? 1 Inventory Management 2 Lean Warehouse Management 3 Full Warehouse Management 4 Decentralized Warehouse Management Option 1 Inventory Management Pro?s ? Simplistic – Key receipt, issue or transfer in a single step transaction – Immediate update of inventory ? Requires less training mitment – Fewer transactions to document and present ? Traceability of all material postings into SAP R/3 – Date, user, material, quantity, storage location ? Realtime update of accounting information 1 Inventory Management (cont.) Con?s ? Does not handle plex warehouses operations well – Unable to monitor activities – Lacks tools to manage resources and tasks – Lacks functionality to optimize key processes (picking) ? Inaccurate system inventory – Inventory updated before the physical movement – Requires additional work if there are discrepancies ? Limited traceability – Only visibility is when the system posting took place – No visibility to the follow on physical activities Option 2 “Lean” Warehouse Management Use of very small portion of WM capabilities ? You do not process goods receipts or issues as a subsequent process in WM, ? No storage bins are managed in the WM application Evolved from SD pick list Putaway and pick from 1 or more fixed bins Bin is hard assigned on material master TO?s are created for picks and put away, and pick list is created from TO?s 2 “Lean” Warehouse Management (cont.) Pro?s ? Requires less configuration than full WM ? Reduced number of steps in the process – Use of transfer orders as pick lists – Confirmation is not required ? Additional processing options – Confirm putaway, picking, overdeliveries, shortages, batches – Print transfer orders – Integration to HR ? Additional picking functionality – Wave picking is possible with Lean WM 2 “Lean” Warehouse Management (cont.) Con?s ? Must have a fixed bin assigned for all materials – Random storage is not possible ? Inventory is still under IM functionality only – Inventory options are at the storage location – Stock differences can only be processed in MMIM ? Lacks additional optimization opportunities – Picking, packing, bin accuracy ? No strategies are used – Lack of picking and put away strategies Option 3 Full Warehouse Management Pro?s ? Optimization opportunities – Picking Two step picking – Packing Pick and pack in a single step – Crossdocking Inbound, outbound, prod. materials ? Monitoring and real time visibility to process status – Visual queues at the detailed steps – Open tasks, pleted tasks ? Additional inventory methods (annual, ze