Warehouse Execution Systems for Efficient Operations

Warehouse Execution Systems Presented by: Martin McLean President

What is a Warehouse Execution System? There are a plenty of definitions. The term has even made it onto Wikipedia. The latest pundits say Warehouse Management Systems are unable to provide execution capabilities you need to integrate WES , they say. This is not always the case. Warehouse Control Systems are really Execution Systems - right? Fact is, numerous websites explain it, define it, and offer WES. But what is it?

The word execution defined The Merriam Webster dictionary has a good definition: the act or mode or result of performance . Performance improvements are at the core of Warehouse Execution Systems. A WES is a right now, high speed, real time, responsive platform for getting tasks done in the most efficient way possible.

A viewpoint on WES solutions Think of a Warehouse Execution System (WES) as a solution that goes beyond what is strictly a Warehouse Control System (WCS). When you want to execute better, faster, in real time, with more accuracy and a lot less labor, with a ridiculous Return on Investment, look for a Warehouse Execution System that pays for itself. There are some vendors out there that provide WES as an integrated part of their WMS offering, and others with WES solutions that can be integrated. WES improves and automates inbound operations, fulfillment, storage systems, robotics, machine controls, and more.

2023 State of Economy Impact on Spending Material Handling Spending in 2023 40% 35% 30% 25% 20% 15% 10% 5% 0% Wait & See Holding Off Proceeding No Impact Industry reports estimate, on average, that over 50% will spend on solutions.

Where the money is going in 2023 Projected Spending 70% 60% 50% 40% 30% 20% 10% 0% Lifts Software Conveyance Robotics Automation Storage Solutions 59% of companies plan on Automation spending in 2023, 26% on Robotics, 54% on Storage systems.

When should a business consider a WES? When labor is an issue with higher costs, labor pool is inadequate or shrinking, or competition from very large distributors such as an Amazon DC in your area. It is quite common that could be impacted by all of these. When you must meet service level expectations to gain and retain customers. When inventory accuracy is less than 99.5% by actual unit count. Net dollar difference is meaningless when it comes to operations. If your WMS / ERP or data collection solution does not support direct WES/WCS. Consider applying WES solutions to a single problem area for quick results and fast ROI. If you handle materials, with enough volume, and have one or more of the above, a WES should be considered.

Benefits of Warehouse Execution Systems Execution Systems are responsive, real-time solutions that can synchronize operations. Real time feedback on operations and labor utilization make it possible to be responsive. WES solutions should be designed to scale to the operation. Seasonal demands on systems and operations can be curbed with the right solution. Improving performance, per the earlier definition, is the goal.

Hardware Solutions & WES AS/RS (Goods to Person) cuts labor, saves floor space VLMs saves floor space, goods to operator, easy to scale AMRs versatile, easily handle simple operations, integrate easily Carousels still around, solid technology, high rates Robotic Pick / Put new technologies that are making a difference Print & Apply produce substantial, ROI for higher volumes Pick by Light low cost, scalable, fast implementations, great ROI Conveyor Routing / Sortation WES managing in real time

WES Controlled Storage Fulfillment Rates Fulfillment Rates per Hour 600 500 400 300 200 100 0 3 VLMs AS/RS 3 Carousels AMRs w GTO Low End High End Pick rates vary widely. Factors include volume per hour, order profiles, machine delivery rates, bag-and-tag, etc.

Achieving Optimal Pick Rates with Hardware AS/RS solutions configured for the number of operators needed to hit rates. VLMs and Carousels are typically implemented in groups or pods to achieve zero wait times for operators. AMRs for Goods to Person need enough units to sustain rates Pick by Light should scale only for SKUs with certain attributes AMRs are now being used to replace conveyors in some areas of an operation, or the entire operation

Software Solutions as the WES Carton Sizing & Labeling low budget solution using mobile devices Task Interleaving real time work assignments increase performance Batch / Cluster Picking done correctly, in real time, achieves high throughput Outbound operations high speed Parcel Manifesting realizes excellent ROI Mobile Devices real time order batching & pick-and-pass can achieve 30% to 40% gains, and sometimes much more Voice Systems use where needed in operations where hands-free is a must Order Consolidation / Buffering simple solutions for smaller distributors It is true many WMS solutions have these features, but not all providers build these applications with Execution in mind. Execution is what we are after. We want to achieve the highest rates and accuracies in every area of the operation. Simple software solutions can provide EXTRAORDINARY increases in performance.

Can Software Alone be a WES? A recent implementation used Carton Sizing & Labeling to batch pick with Mobile Devices to eliminate 40 full time positions from just the packing operation! Another implementation used Dynamic Batch Picking to pick 100 orders at a time using mobile devices, achieving 200 picks per hour, on average. An industry provider reported a client achieved parcel manifesting rates of 1000 cartons per hour, per operator. If budget is a constraint, WES software solutions can bridge the gap, especially in problem areas, to reduce labor & increase accuracy.

Software Only as the WES Fulfillment Rates per Hour 400 350 300 250 200 150 100 50 0 Single Order Small Batches Large Batches Pick by Light Low End High End Pick by Light is sometimes considered a hardware solution, but some platforms provide direct control.

Warehouse Management and WES Providers that have WMS and WES as an integrated platform are ideal for implementing automation solutions. There are WMS providers that have defined integration protocols for fast, reliable WES implementations. Does the WMS support easy integration of WES? Or better yet, does it have built-in WES components? Does the WES have defined, built in hardware integrations that extend WCS functionality? Seek providers that are not hardware specific and that have experience across multiple platforms and solutions.

The Cloud & WES/WCS Can it be deployed that way? Yes! Should we deploy it that way? It depends. Do some providers support both strategies? Yep. In our experience, large, highly automated distribution centers are normally deployed on premise. But there are exceptions, and a good WES with high-speed integrations makes it possible to be in the cloud. With high volume WES / WCS implementations, responsiveness and latency are the guiding factors. How big is your problem if the system goes down for an hour or 8 hours? What about a day or more? The whole WES concept of let s go faster runs into the mandate Everything musts be in the cloud .

Scalable Automation Considerations Imagine if you will, trying to provide real time response to high- speed automation elements to achieve extraordinary throughput! Now imagine a cloud solution running on a browser, talking to a server somewhere in the cloud, which then talks to a database on another server, so that a remote WES component can control an on-premise hardware storage system. It gets down to this does a deployment strategy requirement impact performance?

When to Automate With today s labor issues and competitive distribution providers (Amazon), Automation should be considered any time there is demonstrable Return on Investment across the operation. Throughput issues on inbound or outbound should be examined and compared to industry standards. Inventory inaccuracy kills performance. Good Warehouse Management Systems should achieve 99.5% by unit count, a must for WES. Find low hanging fruit. An affordable Pick to Light solution can do wonders for the right SKU base. Green field implementations allow you to design a complete solution. Take advantage if you have the opportunity.

A real-life story about considering a WES At Modex last year I met with a group that said they were looking for a vertical storage solution that could achieve 200 picks per hour, per operator. I told them I had a client with their EXACT same SKU base and order profile, and they were running 1000 picks per hour, per operator. They were shocked, dismayed, and ultimately in disbelief. I offered my client as a blind reference and told them to follow up and go see it. And that s where the conversation ended. Why? They were certain it was impossible to do 1000 picks per hour from a any storage solution (their consultant told them so). A lot of providers have some incredible solutions. I urge you to take a look at what s possible.

The Watchword for those of us in Supply Chain these days is AUTOMATE OR DIE (so long as the ROI is ridiculous)

For more information: I am available to answer any questions you might have. Thank you for attending! Email: martin.mclean@ascentwl.com Website: www.ascentwl.com Or visit ProMat Booth S424b