Warehouse Management Overview from from The Systems House, Inc.

Warehouse Warehouse Management OverviewManagement Overview

fromfrom

The Systems House, Inc.The Systems House, Inc.

Benefits of MDS-WMSBenefits of MDS-WMS Inventory is the single Inventory is the single

largest investment made largest investment made by the distributorby the distributor

Improve inventory Improve inventory accuracyaccuracy

Improve order Improve order processing accuracy processing accuracy (less returns) (less returns)

Improve personnel Improve personnel performance and performance and accuracyaccuracy

Better utilize warehouse Better utilize warehouse spacespace

Improve customer Improve customer satisfactionsatisfaction

The MDS Warehouse The MDS Warehouse Management SolutionManagement Solution

Warehouse DesignWarehouse Design Single or Multiple Warehouses Single or Multiple Warehouses

Branches or Stock RoomsBranches or Stock Rooms Location Management in WarehouseLocation Management in Warehouse

Location as a Reference orLocation as a Reference or Inventory by Location (Random Locator System)Inventory by Location (Random Locator System)Receive, Stock, and Sell in Multiple Units of MeasureReceive, Stock, and Sell in Multiple Units of Measure

Solid Case and Quick Pick Areas (Low Unit)Solid Case and Quick Pick Areas (Low Unit)Primary and Backup LocationsPrimary and Backup LocationsLow Unit vs. Bulk PickingLow Unit vs. Bulk PickingLow Unit replenishmentLow Unit replenishment

Environmental and Security Considerations Environmental and Security Considerations Lot#, Serial#, Expiration Date ControlLot#, Serial#, Expiration Date Control

MDS MDS Warehouse Warehouse CapabilitiesCapabilities

Warehouse Management Functions Warehouse Management Functions (WMS(WMS)) ReceivingReceiving Put AwayPut Away Replenishment (location management)Replenishment (location management) PickingPicking Physical Inventory / Movements / Physical Inventory / Movements /

AdjustmentsAdjustments Returns from Customers and to VendorsReturns from Customers and to Vendors

Interface to UPS and FedExInterface to UPS and FedEx

Delivery Route ManagementDelivery Route Management Manifest System Manifest System Proof of Delivery (Signature capture)Proof of Delivery (Signature capture) Package Tracking with Multiple StopsPackage Tracking with Multiple Stops

Advanced CapabilitiesAdvanced Capabilities Implement Bar Coding to Improve AccuracyImplement Bar Coding to Improve Accuracy

Not necessarily fasterNot necessarily faster

Bar Coding IssuesBar Coding Issues Product or Location Bar CodingProduct or Location Bar Coding Manufacturer Can Label Products:Manufacturer Can Label Products:

Not uniform in many industries such as MedicalNot uniform in many industries such as Medical Significant Cost to Barcode Items Upon ReceiptSignificant Cost to Barcode Items Upon Receipt Bar Codes do not Define Unit of MeasureBar Codes do not Define Unit of Measure Alternate Solution: Barcode LocationsAlternate Solution: Barcode Locations Maintain Product by Location (one item per location) Maintain Product by Location (one item per location)

Wireless SolutionsWireless Solutions Wi-Fi or RF Receiving, Replenishment, and PickingWi-Fi or RF Receiving, Replenishment, and Picking Automated Picking - Carousel SystemsAutomated Picking - Carousel Systems Voice Response PickingVoice Response Picking

MDSWMS – Latest MDSWMS – Latest Enhancements:Enhancements:

New VB.NET Handheld Application – faster, New VB.NET Handheld Application – faster, more user friendly, more functional. more user friendly, more functional.

Receiving/Putaway by Warehouse ZoneReceiving/Putaway by Warehouse Zone Replenishment by Warehouse ZoneReplenishment by Warehouse Zone Tracking In Pick by LocationTracking In Pick by Location Multiple Primaries – Custom LogicMultiple Primaries – Custom Logic Stock RotationStock Rotation Date Controlled items – Like lots but Lot# Date Controlled items – Like lots but Lot#

defaults to Exp Date.defaults to Exp Date.

WiFi Equipment SchematicWiFi Equipment Schematic

MDS WMS

Server

Wireless Picking Wireless Receiving

Wireless Inventory And

Replenishment

WiFi PDT Handheld/ EquipmentWiFi PDT Handheld/ Equipment

Warehouse Management Warehouse Management MenuMenu

Warehouse SetupWarehouse Setup

Warehouse Level ParametersWarehouse Level Parameters Location Control in use Location Control in use Wireless Picking in useWireless Picking in use Totes in useTotes in use Putaway Method – 1 Step, 2 Step, 2 Step by ZonePutaway Method – 1 Step, 2 Step, 2 Step by Zone Putaway Print – Labels, Forms, Both, NonePutaway Print – Labels, Forms, Both, None Replenish at Receipt TimeReplenish at Receipt Time Bulk Redirection Bulk Redirection Receiving Method Receiving Method IM Replenishment Method IM Replenishment Method Single Product per locationSingle Product per location Replenishment Method (Min/Max or to Max)Replenishment Method (Min/Max or to Max) Remove Location Flag (upon depletion)Remove Location Flag (upon depletion) Replenish Case RoundingReplenish Case Rounding Redirect if not in BulkRedirect if not in Bulk OE Replenish to MaxOE Replenish to Max Wireless ReceiptsWireless Receipts Location Format Location Format Location Match Location Match Interface Type Interface Type

Location Control and Location Control and SetupSetup

Product Master FileProduct Master File

Inventory and Product Inventory and Product InformationInformation

Lot Inventory DisplayLot Inventory Display

Lot and Serial Number Tracking Lot and Serial Number Tracking InquiryInquiry

ReceivingReceiving

Receiving Form Printed (by Vendor and Purchase Receiving Form Printed (by Vendor and Purchase Order)Order)

Inspect and Approve Receipt Inspect and Approve Receipt Receipt and Put Away Information Recorded on Receipt and Put Away Information Recorded on

Receiving FormReceiving Form Form shows current locationsForm shows current locations Placement of inventory determined by warehouse Placement of inventory determined by warehouse

personnelpersonnel Generate Bar Coded Labels at Receiving (Optional)Generate Bar Coded Labels at Receiving (Optional)

Product LabelsProduct Labels Lot#, expiration date, weightLot#, expiration date, weight

Inventory Receipt Info Entered into MDS System from Inventory Receipt Info Entered into MDS System from Receiving FormReceiving Form Can be entered in warehouse or officeCan be entered in warehouse or office

Receiving FormReceiving Form

Label Creation SoftwareLabel Creation Software

Receiving and Put Away Receiving and Put Away Using MDSWMS WirelessUsing MDSWMS Wireless

Recall Purchase Order(s) to PDTRecall Purchase Order(s) to PDT Inspect and Approve Receipt Inspect and Approve Receipt Paperless Receiving Using Portable Data Terminals (PDTs)Paperless Receiving Using Portable Data Terminals (PDTs) Receive to “Receiving Location” (Staging Area)Receive to “Receiving Location” (Staging Area)

Single Receiving Location or by ZoneSingle Receiving Location or by Zone Generate Bar Coded Labels at Receiving (Optional)Generate Bar Coded Labels at Receiving (Optional)

Product LabelsProduct Labels Lot#, expiration date, weightLot#, expiration date, weight Pallet LabelsPallet Labels

Put Away Merchandise and Record Bin Locations using PDT Put Away Merchandise and Record Bin Locations using PDT based on:based on: Available space in primary locationAvailable space in primary location Existing backup locationExisting backup location Additional backup location Additional backup location Cross-Docking of Backorders – By Receiver or By Receiver by Cross-Docking of Backorders – By Receiver or By Receiver by

ZoneZone Environmental Requirements (hazardous, security)Environmental Requirements (hazardous, security) Weight Requirements (i.e. on ground onlyWeight Requirements (i.e. on ground only))

Put Away FunctionPut Away Function

Receive to “Receiving Location”

Cross Dock Orders

Receive to Bulk Location

Receive to Primary Pick Location

Warehouse ZonesWarehouse Zones

Replenishment ProcessReplenishment Process

Transfer Transfer Request isRequest is

AutomaticallyAutomatically GeneratedGenerated

TransferTransfer is Picked and is Picked and

Verified by Verified by Barcode Barcode

(Item/Location)(Item/Location)

Stock FallsStock Falls Below Below

Minimum LevelsMinimum Levels

1.1. Used if inventory by location has been Used if inventory by location has been implementedimplemented

2.2. Daily and Just in Time Replenishment Daily and Just in Time Replenishment • Daily – Restock all primary pick locations Daily – Restock all primary pick locations

up to pre-determined level (i.e. 3 days up to pre-determined level (i.e. 3 days supplies)supplies)

• During day – replenish locations falling During day – replenish locations falling below minimumbelow minimum

3.3. Transfer request generated on paper or Transfer request generated on paper or electronicallyelectronically

4.4. Transfers verified by barcode (Item or Transfers verified by barcode (Item or Location)Location)

5.5. Stock Rotation – Replenishments will pull Stock Rotation – Replenishments will pull from the overflow location with the oldest from the overflow location with the oldest Received Date or earliest Expiration DateReceived Date or earliest Expiration Date

Replenishment ReportReplenishment Report

ReplenishmentReplenishment

• Transfer ID is scanned.Transfer ID is scanned.• On the replenishment On the replenishment picking, each “from” location picking, each “from” location is scanned.is scanned.• On the replenishment On the replenishment put-away, each “to” location put-away, each “to” location is scanned.is scanned.• After scanning the “to” After scanning the “to” location, the product is location, the product is moved in the system to the moved in the system to the new location and an new location and an inventory audit is created.inventory audit is created.

PickingPicking Items can be stored in multiple locations. Items can be stored in multiple locations.

Selection based on:Selection based on: Earliest expiration dateEarliest expiration date Oldest merchandise (receipt date)Oldest merchandise (receipt date) Solid case vs low unit of MeasureSolid case vs low unit of Measure

Items can now have multiple primary Items can now have multiple primary locationslocations Primary Location with Quantity AvailablePrimary Location with Quantity Available

Orders can be grouped for “batch picking”Orders can be grouped for “batch picking” Replenishment if in use, must precede printReplenishment if in use, must precede print MDS splits each order into picking zones:MDS splits each order into picking zones:

Automated PickingAutomated Picking Bulk Area (solid cases)Bulk Area (solid cases) Low Unit Picks Low Unit Picks

WiFi

PickingPicking

Pick Tickets can print upon entry or batched Pick Tickets can print upon entry or batched by time Intervalby time Interval

Pick Tickets typically print in pick location Pick Tickets typically print in pick location sequencesequence

Picker picks items and notes discrepancies Picker picks items and notes discrepancies on the pick ticketon the pick ticket

Order is verified to the systemOrder is verified to the system Packing Slip PrintedPacking Slip Printed Shipping process initiated with interface to Shipping process initiated with interface to

UPS or FedExUPS or FedEx Invoice Printed in-line or overnightInvoice Printed in-line or overnight

WiFi

Picking Picking TicketTicket

Packing Packing SlipSlip

InvoiceInvoice

Picking using Picking using MDSWMS WirelessMDSWMS Wireless

Customer order scheduling based on priority, shipping schedule and Customer order scheduling based on priority, shipping schedule and personnel availabilitypersonnel availability

Items can be stored in multiple locations. Selection based on:Items can be stored in multiple locations. Selection based on: Earliest expiration dateEarliest expiration date Oldest merchandise (receipt date)Oldest merchandise (receipt date) Solid case vs low unit of MeasureSolid case vs low unit of Measure

Replenishment if in use, must precede printReplenishment if in use, must precede print MDS splits each order into picking zones:MDS splits each order into picking zones:

Bulk Area (solid cases)Bulk Area (solid cases) Low Unit Picks Low Unit Picks CarouselCarousel Pick to Light Flow Rack (PTL)Pick to Light Flow Rack (PTL) Voice ResponseVoice Response

Orders can be grouped for “batch picking”Orders can be grouped for “batch picking” Warehouse manager assigns orders to pickersWarehouse manager assigns orders to pickers Picker obtains next assigned order from PDTPicker obtains next assigned order from PDT Display in pick sequence – picker can change sequenceDisplay in pick sequence – picker can change sequence Picker verifies picked items and quantities by barcode (Item or Location)Picker verifies picked items and quantities by barcode (Item or Location) Discrepancies noted for review and correctionDiscrepancies noted for review and correction Order is verified to the systemOrder is verified to the system Shipping process initiatedShipping process initiated

WiFi

Picking Ticket AssignmentPicking Ticket Assignment

Wireless MenuWireless Menu

Customizable

Menu by Operator

PickingPicking Wireless Picking UsingScanners

Automated Material Automated Material HandlingHandling Innovative technologiesInnovative technologies

Advanced software solutions Advanced software solutions Data collection and analysisData collection and analysis Hardware Solutions:Hardware Solutions:

Horizontal carouselsHorizontal carousels Vertical carouselsVertical carousels Heavy-duty carouselsHeavy-duty carousels Vertical lift modulesVertical lift modules Heavy-duty vertical lift modulesHeavy-duty vertical lift modules Storage and retrieval machinesStorage and retrieval machines Automatic inserter/extractorsAutomatic inserter/extractors Pallet conveyorPallet conveyor Tote/case conveyorTote/case conveyor Sortation systemsSortation systems Light-directed pickingLight-directed picking Voice-directed pickingVoice-directed picking Wireless pickingWireless picking Specialty products Specialty products

MDS-WMS for Medical

DistributionReceivingPut-away

Solid Case PickingReplenishmentTransfer/Cycle

CountDiamond MHS

InterfaceOrder

ConsolidationPrint

documents/labelsReporting

Order TrackingOptional Modules

DiamondWare

AutoRoute Server

MDS-WMS Interface

DirectPick PTL flow

rack/shelvingPickingZone

ManagementReporting

PowerPick PTL carousel

podsBatch PickingReplenishmen

tReporting

AutoRoute Tote Routing

Conveyor Logic

Software Information FlowSoftware Information FlowMDS – WMS

Server

MDSWMS Handheld

Application: Inquiry

Put-awayPicking

ReplenishmentInventory Counting

Carousel And ConveyorsCarousel And Conveyors

Carousel SystemCarousel System Automated Storage and Automated Storage and

Retrieval System for Retrieval System for High Speed Order High Speed Order PickingPicking

The PowerPick software The PowerPick software works seamlessly in works seamlessly in conjunction with the conjunction with the MDS softwareMDS software

Saves time while Saves time while increasing productivity, increasing productivity, can improve order can improve order picking productivity by picking productivity by as much as 600 percentas much as 600 percent

Improves order Improves order accuracy and inventory accuracy and inventory controlcontrol

Reduces labor costsReduces labor costs Saves space Saves space

Order ConsolidationOrder Consolidation

Totes can have fixed Tote ID’s, or the Tote Totes can have fixed Tote ID’s, or the Tote number can be assigned and a tote label number can be assigned and a tote label prepared by MDS at the carousel or PTL system.prepared by MDS at the carousel or PTL system.

DiamondPick uploads all tote numbers used for DiamondPick uploads all tote numbers used for an order.an order.

MDS prints labels for the solid case picks with MDS prints labels for the solid case picks with order number and product bar codes.order number and product bar codes.

At consolidation station tote bar codes and solid At consolidation station tote bar codes and solid case labels are scanned:case labels are scanned: Confirm entire order has been pickedConfirm entire order has been picked Print shipping labelsPrint shipping labels Print packing slip(s) by tote. Print packing slip(s) by tote.

WiFi

Labor StatisticsLabor Statistics

Labor tracking by pickerLabor tracking by pickerNumber of Lines/Hour/Day/MonthNumber of Lines/Hour/Day/MonthNumber of Orders/Hour/Day/MonthNumber of Orders/Hour/Day/MonthDollar ValueDollar ValueQty of Items pickedQty of Items pickedTime to PickTime to PickAverage Lines/OrdersAverage Lines/Orders

WiFi

Picker Statistics Report - Picker Statistics Report - SummarySummary

Warehouse ProceduresWarehouse Procedures

Other ProceduresOther Procedures Cycle CountsCycle Counts Physical InventoryPhysical Inventory Inventory AdjustmentsInventory Adjustments TransfersTransfers Customer ReturnsCustomer Returns Return to VendorReturn to Vendor

Physical InventoryPhysical Inventory

Physical Physical InventoryInventory

Scan tag, Scan tag, location or location or

product and product and enter counts.enter counts.

Inventory Inventory InquiryInquiry

Inventory Transaction Inventory Transaction TrackingTracking

ReportingReporting

Benefits of MDS-Benefits of MDS-WMSWMS

Improved inventory Improved inventory accuracy accuracy

Improve personnel Improve personnel performance and performance and accuracyaccuracy

Determine time to pick Determine time to pick by individualby individual

Better utilization of Better utilization of warehouse spacewarehouse space

More flexible More flexible schedulingscheduling