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WMS Performance PID31
WMS Performance PID31
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ESH Department
Hoya Electronics Malaysia, 01000 Kulim, Kedah
Tel: 04-4033118, Fax: 04-4033108
E-mail: [email protected]
Interface Features:
• Interfaces easily with host-based systems 4.4 Outbound Logistics
• Real time and /or batch host integration
The outbound processes use Radio Frequency (RF)
• Inventory interfaces terminal. Outbound System Features are:
• Order interfaces • Orders accepted from any host systems
• System directed pick and real-time verification
Delivery data will update stock and the order data files. • Packing Lists
Receiving order receipts will update stock, and the order • Track and process customer orders
data files. The dispatch records will be used to update
• Supports prioritising orders
picking lists with the confirmed quantities. If there is a
discrepancy in the stock, the ‘amend dispatch quantities’ • Weight capture at picking
option can be used to reduce the picking list quantity. • Pick to Pack
Hence, these interface data enable the distribution centre to • Picks confirmed through shipping process
manage effectively the coordination of information • Interfaces to SAP to confirm the shipment orders
including demand, capacity, inventory and scheduling,
Customer orders are automatically allocated, and delivery
4.3 Inbound logistics order is also automated by linking the picking ticket to
terminals. The standard printed picking list will be used by
The inbound processes use Batch Handy Terminal (BHT). the warehouse for the dispatching of stock. The number will
Inbound System Features are: be entered into the scanner where bar code for each item on
the picking list will be scanned. A quantity will be entered
• Receipts immediately visible and tracked from arrival
via further bar codes scanned.
• Receipts referenced by PO
• Directed Put Away
4.5 Inventory Management
• Location verification to ensure correct placement
• Pre-receiving via manual entry or electronic data Inventory Management Features are (a) real-time storage
interchange (EDI) usage, and (b) security through user passwords and access
• On-line validation against PO information authority levels. Stock take will be performed for the entire
• Receiving Discrepancies Report warehouse. The scanner will allow entry of a location
• Cycle counting for partial inventory checking reference via the scanner. Bar codes would then be scanned
• Verification of physical counts and storage accuracy and either a quantity entered or further bar codes scanned.
• Cycle count post or reissue
• Adjusts warehouse and SAP inventories 4.6 Management Reporting
Leveraging RF-based bar coding technologies and seamless The provision of information at the website is a good
integrating with order entry, WMS tightly orchestrates these channel for the distribution centre (DC) to fulfil the needs of
activities. WMS provided better workload control for view their customers and hence improve customer relationship.
of completed and upcoming activities. While checking in Real-time information eliminates waste and redundancy.
received good, it is prepared for shipping directly to the Fill Ratio has been improved from 82.3% to 86.3%. It
awaiting customer if the item is needed to fulfil a customer increased customer satisfaction resulting from fewer
backorder, while eliminating the introduction of fulfilment errors. EDI requirements support through WMS
transcription errors. It reduces labour costs and increases automatically providing detailed shipping information. It
productivity. In average incoming cycle has been reduced allows for real-time communication and complete visibility
from average 3.71 days to 1.02 days. It was observed that for supply chain collaboration
the lead-time has been reduced by 73% in the period.
It was reported that 43% of the customer complaints was
The final phase of receipt and put-away processing is the due to warehouse operation mistakes before. Nevertheless,
automated update of purchase orders and inventory the operation accuracy has been improved to just 11% of
information into SAP that eliminates manual intervention complaints after implementation.
and errors, while providing accurate and up-to-date
inventory control. It reduces safety stock, stock shrinkage Efficient planning and utilisation of space delivers
and spoilage. Administrative is improved because the work improved warehouse inventory visibility. Making optimal
of printing and distributing picking lists or labels is use of warehouse space is essential to having an efficient
contained, as is the task of keying in picking confirmations and effective warehouse management system. To
and picking amendments. WMS offers a streamlined effectively manage the warehouse space, WMS provides the
shipping solution that produces shipping labels, picking ability to individually determine for each bin whether it is
slips, carton content labels and advanced shipping notices fixed or floating. Improved space utilisation was achieved
eliminating errors in transcription from customer order. by logical stocking in different sized products.
The Outbound lead-time for air freight (AF) for subsidiaries
has been reduced from 9.94 days to 4.29 days, which is a WMS also provides detailed audit trail that measures
reduction of 57%. The WMS provides a fast order handling performance levels objectively, ensures employee
process to keep distribution costs to a minimum. accountability and allows material flow to be easily traced.
WMS reducing human errors inherent in manual and paper It was found that the operations procedures at the
based systems. Inventory Accuracy improved from 98.34% warehouse have been overhauled to adapt to new warehouse
to 99.52%. This occurs by allow access all departments management system. Business Process Reengineering
within company to the same set of accurate inventory data. (BPR) has taken place. Maintenance department was
The WMS offered physical scanning of items, locations and established for independent cycle counting process. The
boxes so that the contents of any order or storage location WMS promotes knowledge sharing. It is clear the usage of
can be viewed in real-time. Floor workers connect to the the logistics system have been embraced at all stages of
WMS data using wireless RF terminals, which customer operations. The system has fundamentally improved the
services users and business analysts access through a GUI warehouse’s services, internal and external relationships
interface to check delivery status. Transparent and accurate reflected in the performance measures to help the
inventory data allows employees in distribution, warehouse gain a competitive advantage. They are able to
procurement and warehouse departments to work from the alter the way in which the firm conducts its business or the
same information, thereby ensuring greater customer very business of the firm itself. These flexibility and
enterprise-wide approach has brought real agility to the implement WMS in order to maintain their competitive
business, supporting strong business growth. The bottom edge in the global market place.
line of a WMS is the ROI it provides. By improving on
warehouse procedures, WMS makes the distribution centre The case study is limited to a selected electronics parts
more competitive and profitable. regional distribution centre. The flows analysed are the
physical (stock management and movements) and
There are constraints faced by the distribution centre. For informational flows that are associated with the service
the demand forecasting, poor demand forecasting processes parts distribution activities. Future studies may explore on
can result in excess inventory, stock-out and back orders, variety of industries to capture distinction in experience, by
and unable to forecast early-lifecycle and end-lifecycle parts focusing on consumer market based electrical appliances or
accurately. In term of inventory management, the perishable fast movement consumer goods (FMCG).
distribution centre experienced limited collaboration into Comparative studies can be conducted across industries, and
demand lead to poor inventory deployment, as the result of then the similarities and differences observed. Alternately,
lack of integration into sales data. At the lower stream flow measurement of intangible benefit can also be tested in
of operation in distribution and logistics, there is challenge Malaysian industries.
of inefficient distribution flow, logistics and warehouse
management processes that can result in long lead-time
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