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Understanding the WMS, WCS, and WES
Navigating Distribution Fulfillment Center
Software
Navigating distribution fulfillment center software_SSI Schaefer
Mark Dickinson
Director - Enterprise Solutions
North America
• Understand how fulfillment strategies have become critical for
growth,
• Get clear knowledge on which software plays what roles
within the Supply Chain ecosystem,
• Gain insight into how strategic decisions on how software will
impact the bottom line.
Session Objectives & Actionable Takeaways
Ask retailers today what the key is when reaching consumers,
and your likely to hear customization.
1. A Personalized/Customized Experience
2. Assortments of Products
3. Fast Delivery to Home
Customer Demands
1. Retain Customers
• Eliminate need to go elsewhere
2. Increase Product Offerings
3. Improve Service Level Agreements to Customers
• More Shipments
• Less Consolidation
Business Demands
1. Customer Retention = Accuracy & Availability
2. More SKUs = More Space or Partnerships
3. Improved Service Levels (BOPUS, 2 Day Shipping, etc.) =
• More Orders, Less Consolidation
• More volume, More Throughput
Customer + Business Demands = Supply Chain Strain
Customer + Business Demands = Supply Chain Strain
Business &
Merchant Demands
Customer Demands
Cost
Containment
How do changing fulfillment strategies affect the
business?
In order to grow, the business must
meet customer needs. The supply
chain therefore must find a way to
accommodate.
As your Supply Chain becomes more complex, so
does the systems architecture
As your Supply Chain becomes more complex, so
does the systems architecture
ERP
DOMS
LMS
YMS
WMS WES
WCS
Lighthouse
(Data Concentrator)
HMI
IoT
Analytics
Stores
FULFILLMENT INTERACTIVITY
• Management Systems
• ERP – Business and $$$
• DOMS – Order Fulfillment Point
• Stores – Store Inventory & Availability
• WMS – Inventory & Locations
• WES – Order Grouping & Release
• LMS – Labor Planning & Reporting
• YMS – Yard & Dock Appointments
• WCS – Movement inside DC/FC
Stores
Cloud vs. On-premise
Systems Architecture – Basic Decisions
Cloud vs. On-premise, which one is best?
Systems Architecture – Basic Decisions
VS.
Cloud Based On Premise
Build Management Homogenous Heterogeneous
OpEx Options Lease/Rent Purchase
Systems Admin Requirements 3rd Party On Staff
Upgrade Cycles Months Years
Scalability Easy Intricate
Response Times >30ms <30ms
Data Retention & Redundancy Scalable Equip Driven
Data Security At-Risk? Robust
Systems Architecture
System Direct Operational
Execution
Indirect Operational
Execution
Enterprise Resource Planning (ERP) X
Distributed Order Management (DOMs) X
Warehouse Management System (WMS) X
Warehouse Execution System (WES) X
Warehouse Control System (WCS) X
Yard Management (YMS) X
Labor Management (LMS) X
Transportation Management System (TMS)
Rate Shopping
X
Stores Fulfillment X
So what is it that these systems do?
Enterprise Resource Planning (ERP)
• Responsible for all accounting functions
• Interface to eCommerce and retail POS systems
• Manages all PO & Invoicing Systems
• Manages Inventory Reorders
The DOMs platform ingests multiple data streams
and applies algorithms and rules to determine the
final fulfillment point.
• Inputs from ERP, WMS, WES, TMS, LMS &
Stores
• Output to WMS
Distributed Order Management System (DOMs)
The WMS is responsible for knowing
what is in the building, including
inventory, orders, and resources. It’s
responsible for:
• Returns processing
• Receiving
• Put away
• Picking
• Shipping
• Manifesting
Warehouse Management System (WMS)
The WES is responsible for the
order start within the building. The
WES is responsible for:
• Deciding when an order should
be started
• Staggering the order start across
multiple functional areas
• Metering or throttling the flow of
work to an area based on
capacities
Warehouse Execution System (WES)
The WCS is responsible for
executing movement of units
through the facility.
• Conveyor decision points
• Load Unit Routing
• Dynamic Destination
Assignments
Warehouse Control System (WCS)
The YMS solution allows customers to
plan, track, and view inbound
shipments through the ERP. The YMS
also manages:
• Additional yard storage
• Outbound movement
• Dock & Yard Planning &
Appointment Management
Yard Management System (YMS)
The LMS solution allows for the reactive
review of an operator’s performance. This
can be task related and it also makes
suggestions to change labor force.
• Identify operator is in right location,
• Task and time analysis,
• Engineered labor standards.
• Labor Planning & Prescriptions
Labor Management System (LMS)
The TMS solution is primarily used in omni-channel
scenarios. Other core competences:
• Freight audits, Label validation & Carrier Selection
Rate Shopping
• Primarily for eComm solutions
• Parcel management & alerts
• Interface to ERP/Customer Experience Management
Transportation Management System (TMS) & Rate
Shopping
Stores Fulfillment
• Evolving systems have created ability for stores to act as fulfillment point
• Stores Module interfaces directly with POS system to determine semi-real
time store level inventory.
• Actual inventory will not be known due to customers holding stock from
shelf to POS
• Interfaces to DOMs to provide inventory levels
Basic Systems Architecture
Highly Complex Systems Architecture
Operational dashboards give a real-
time overview of all the data collected.
These dashboards and reporting
functions are part of the WES, and can
display anywhere and can even be app
driven:
• System status,
• Resources,
• Order completion.
Dashboards & Reporting
• Use Case
• Inventory allocation is greater than physical stock
• Solution
• WMS queries YMS
• If stock is available in yard, priority is changed
• Benefit
• Stock out & backorders prevented
• Happy Customers
• Labor used more effectively
Intelligent Decisions – Fulfillment View
YMS
WMS
• Use Case
• Predictive Analytics for workforce planning
• Solution
• LMS uses analytics modules to obtain historical production rates
• LMS looks to WES to determine production requirements
• Suggests staffing levels in each functional area
• Benefit
• Able to retain quality labor for a sustained period
• Able to smooth work flows between peaks rather than
react to influx
• Labor is used more effectively for lower overall OPEX costs
Intelligent Decisions – Fulfillment View
LMS
WES
Analytics
• Use Case
• Customers want visibility into the status of the order
• Solution
• Provide real time feedback on order status
• Connection through APIs can trigger updates to web portal
• Based on order and item availability, could suggest an additional product
• Benefit
• Allowing customers to see the order status can drive additional decision
criteria
• Add an item
• Shipping Upgrade
Intelligent Decisions – Customer View
• Connected Fulfillment Centers can provide
• Real time operational visibility for effective decision making
• More effective labor planning and utilization
• More transparency to the customers
Intelligent Decisions – Bottom Line
Mark Dickinson
Director of Enterprise Solutions for
North America
Schaefer Systems International, Inc.
mark.dicksinson@ssi-Schaefer.com
Questions?
Navigating distribution fulfillment center software_SSI Schaefer

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Navigating distribution fulfillment center software_SSI Schaefer

  • 1. Understanding the WMS, WCS, and WES Navigating Distribution Fulfillment Center Software
  • 3. Mark Dickinson Director - Enterprise Solutions North America
  • 4. • Understand how fulfillment strategies have become critical for growth, • Get clear knowledge on which software plays what roles within the Supply Chain ecosystem, • Gain insight into how strategic decisions on how software will impact the bottom line. Session Objectives & Actionable Takeaways
  • 5. Ask retailers today what the key is when reaching consumers, and your likely to hear customization. 1. A Personalized/Customized Experience 2. Assortments of Products 3. Fast Delivery to Home Customer Demands
  • 6. 1. Retain Customers • Eliminate need to go elsewhere 2. Increase Product Offerings 3. Improve Service Level Agreements to Customers • More Shipments • Less Consolidation Business Demands
  • 7. 1. Customer Retention = Accuracy & Availability 2. More SKUs = More Space or Partnerships 3. Improved Service Levels (BOPUS, 2 Day Shipping, etc.) = • More Orders, Less Consolidation • More volume, More Throughput Customer + Business Demands = Supply Chain Strain
  • 8. Customer + Business Demands = Supply Chain Strain Business & Merchant Demands Customer Demands Cost Containment
  • 9. How do changing fulfillment strategies affect the business? In order to grow, the business must meet customer needs. The supply chain therefore must find a way to accommodate.
  • 10. As your Supply Chain becomes more complex, so does the systems architecture
  • 11. As your Supply Chain becomes more complex, so does the systems architecture ERP DOMS LMS YMS WMS WES WCS Lighthouse (Data Concentrator) HMI IoT Analytics Stores
  • 12. FULFILLMENT INTERACTIVITY • Management Systems • ERP – Business and $$$ • DOMS – Order Fulfillment Point • Stores – Store Inventory & Availability • WMS – Inventory & Locations • WES – Order Grouping & Release • LMS – Labor Planning & Reporting • YMS – Yard & Dock Appointments • WCS – Movement inside DC/FC Stores
  • 13. Cloud vs. On-premise Systems Architecture – Basic Decisions
  • 14. Cloud vs. On-premise, which one is best? Systems Architecture – Basic Decisions VS. Cloud Based On Premise Build Management Homogenous Heterogeneous OpEx Options Lease/Rent Purchase Systems Admin Requirements 3rd Party On Staff Upgrade Cycles Months Years Scalability Easy Intricate Response Times >30ms <30ms Data Retention & Redundancy Scalable Equip Driven Data Security At-Risk? Robust
  • 15. Systems Architecture System Direct Operational Execution Indirect Operational Execution Enterprise Resource Planning (ERP) X Distributed Order Management (DOMs) X Warehouse Management System (WMS) X Warehouse Execution System (WES) X Warehouse Control System (WCS) X Yard Management (YMS) X Labor Management (LMS) X Transportation Management System (TMS) Rate Shopping X Stores Fulfillment X
  • 16. So what is it that these systems do?
  • 17. Enterprise Resource Planning (ERP) • Responsible for all accounting functions • Interface to eCommerce and retail POS systems • Manages all PO & Invoicing Systems • Manages Inventory Reorders
  • 18. The DOMs platform ingests multiple data streams and applies algorithms and rules to determine the final fulfillment point. • Inputs from ERP, WMS, WES, TMS, LMS & Stores • Output to WMS Distributed Order Management System (DOMs)
  • 19. The WMS is responsible for knowing what is in the building, including inventory, orders, and resources. It’s responsible for: • Returns processing • Receiving • Put away • Picking • Shipping • Manifesting Warehouse Management System (WMS)
  • 20. The WES is responsible for the order start within the building. The WES is responsible for: • Deciding when an order should be started • Staggering the order start across multiple functional areas • Metering or throttling the flow of work to an area based on capacities Warehouse Execution System (WES)
  • 21. The WCS is responsible for executing movement of units through the facility. • Conveyor decision points • Load Unit Routing • Dynamic Destination Assignments Warehouse Control System (WCS)
  • 22. The YMS solution allows customers to plan, track, and view inbound shipments through the ERP. The YMS also manages: • Additional yard storage • Outbound movement • Dock & Yard Planning & Appointment Management Yard Management System (YMS)
  • 23. The LMS solution allows for the reactive review of an operator’s performance. This can be task related and it also makes suggestions to change labor force. • Identify operator is in right location, • Task and time analysis, • Engineered labor standards. • Labor Planning & Prescriptions Labor Management System (LMS)
  • 24. The TMS solution is primarily used in omni-channel scenarios. Other core competences: • Freight audits, Label validation & Carrier Selection Rate Shopping • Primarily for eComm solutions • Parcel management & alerts • Interface to ERP/Customer Experience Management Transportation Management System (TMS) & Rate Shopping
  • 25. Stores Fulfillment • Evolving systems have created ability for stores to act as fulfillment point • Stores Module interfaces directly with POS system to determine semi-real time store level inventory. • Actual inventory will not be known due to customers holding stock from shelf to POS • Interfaces to DOMs to provide inventory levels
  • 27. Highly Complex Systems Architecture
  • 28. Operational dashboards give a real- time overview of all the data collected. These dashboards and reporting functions are part of the WES, and can display anywhere and can even be app driven: • System status, • Resources, • Order completion. Dashboards & Reporting
  • 29. • Use Case • Inventory allocation is greater than physical stock • Solution • WMS queries YMS • If stock is available in yard, priority is changed • Benefit • Stock out & backorders prevented • Happy Customers • Labor used more effectively Intelligent Decisions – Fulfillment View YMS WMS
  • 30. • Use Case • Predictive Analytics for workforce planning • Solution • LMS uses analytics modules to obtain historical production rates • LMS looks to WES to determine production requirements • Suggests staffing levels in each functional area • Benefit • Able to retain quality labor for a sustained period • Able to smooth work flows between peaks rather than react to influx • Labor is used more effectively for lower overall OPEX costs Intelligent Decisions – Fulfillment View LMS WES Analytics
  • 31. • Use Case • Customers want visibility into the status of the order • Solution • Provide real time feedback on order status • Connection through APIs can trigger updates to web portal • Based on order and item availability, could suggest an additional product • Benefit • Allowing customers to see the order status can drive additional decision criteria • Add an item • Shipping Upgrade Intelligent Decisions – Customer View
  • 32. • Connected Fulfillment Centers can provide • Real time operational visibility for effective decision making • More effective labor planning and utilization • More transparency to the customers Intelligent Decisions – Bottom Line
  • 33. Mark Dickinson Director of Enterprise Solutions for North America Schaefer Systems International, Inc. mark.dicksinson@ssi-Schaefer.com Questions?

Notas do Editor

  1. Mark, I’m assuming you have your pitch on this one. Let me know if you want one slide with just the diagram.
  2. Mark, I’m assuming you have your pitch on this one. Let me know if you want one slide with just the diagram.
  3. Mark, I’m assuming you have your pitch on this one. Let me know if you want one slide with just the diagram.