WMS

One of the more rewarding and challenging projects in Distribution is implementing a Warehouse Management System (WMS). Since they impact almost all of the key warehouse functions, there is great potential for improvement.

During my first WMS implementation, we were looking to improve productivity in the warehouse and WMS was a good way to accomplish this because it replaced much of the paperwork with wireless instructions using RF terminals. This reduced shipping and inventory errors by confirming the locations and adjusting inventory in real time.

A team was put together to evaluate the various systems on the market and estimate the cost benefit. A subset of this team remained to manage the implementation, configure the system, train the staff, modify the systems, and install the hardware. The vendor was responsible for project management, developing the project plan, and providing technical resources as needed.

The first step was to document all of the existing procedures with process flowcharts. This allowed us to configure the system to replicate these procedures. Some improvements were already built into the system, such as automatically locating the product and determining the optimal pick path. Other improvements included utilizing batch picking, zone picking and wave picking to reduce travel time and prioritizing cycle counts based on error and pick frequency to reduce unneeded counts.

There were many lessons learned after the first implementation. One of the key issues was the inaccurate inventory since the process to move inventory into the new system was flawed. Another issue was training. The staff was multi-lingual and it was difficult to train them effectively. Although there were many training classes and tests to measure performance, there wasn’t enough multilingual supervision to answer questions and facilitate. The last major issue was that management had unrealistic expectations for improvement. This resulted in starting with less staff than needed in key functions. Most consultants will estimate at least a 10% improvement, but it is unwise to start with 10% fewer employees at the start due to the learning curve.

The second implementation had an experienced implementation team with adequate assistance from the other divisions to ensure that all areas were covered. We conducted a very thorough training of management and staff. We conducted an RF inventory which turned out to be very accurate and we developed an efficient set of work rules that were simple and effective.

Productivity increased significantly in the 2 weeks following implementation and errors were reduced. Replenishment increased from 80 to 110 cases per hour and some of the individual staff were doing over 120cpmh! The success of this project lead to a corporate wide replication of WMS with significantly improved inventories, higher productivity levels, and fewer shipping errors. While it was believed that some of the warehouse employees would have a difficult time with the new technology, they embraced it and felt a great deal of satisfaction when it was successful.

AJP Logistics

Supply Chain Engineering