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Best Practices in Extended Warehouse Management at
Heather Krupp Manager, Manufacturing & Warehouse Systems
Harry & David Introduction & History
Harry & David Operational Overview
Harry & David SAP History
Current IT Environment
Process for Reviewing EWM
Project Expectations
EWM Processes
Enhancements
Migration Process
Lessons Learned
AGENDA
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Harry & David History
Founders Harry and David Holmes Through the 20s business boomed and the fame of Royal Riviera Pears spread
Great Depression 1934 – trips to San Francisco and New York to market to the captains of industry It was the beginning of Harry and David as America's premier direct marketer of fruit and food gifts
We are proud to be one of the nation's oldest catalog mail order companies
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Harry & David Operational Overview
Vertically Integrated Orchards located in Medford, Oregon Bakery located in Medford, Oregon Manufacturing and Packing of Gifts Order Entry and Fulfillment
Direct Marketing Catalog E-Commerce Business to Business
Stores 60 Specialty and Outlet
Wholesale
Manufacturing
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Harry & David SAP History Goals
Implement state of the art ERP and Warehouse system
Establish a common system, with the breadth and depth of functionality, that can be leveraged for a majority of future systems deployment projects
Retire old mainframe MRP and Purchasing application
Enhance capabilities for multi-site manufacturing and sourcing
Standardize operations between facilities
Upgrade and retire Catalyst WMS with SAP WM
Provide a robust solution for the Wholesale divisions to support a growing business
Improve customer responsiveness, be more flexible and improve efficiencies
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Harry & David SAP History (cont.) Meeting the Challenges of a Growing Business
Improve the speed and efficiency of the Product Design process
Plan and re-plan manufacturing activities on the fly
Manage various manufacturing plants independently and isolate the procurement and production activities by plant
Evaluate product cost variances during the course of the month, rather than just at the end of the month
Reduce the amount of time it takes to train a new employee in the use of our H&D Wholesale, Accounts Payable, Purchasing and Manufacturing applications
Eliminate redundant entry (item data, customers, etc.)
Simplify IT support of our software applications
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Harry & David SAP History (cont.)
Our Progress ERP project kicked off in October of 2006
Phases completed Blue-printing (design) Development of interfaces and conversions (coding) Realization Three phases of increasingly complex testing
Implementation in February of 2008 SD FICO MM PP IM BI (Pass Through) PI Solution Manager Seeburger EDI
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Current IT Environment
A complex application architecture, with disparate applications requiring significant integration
Homegrown Order Entry System
Numerous departmental “side systems” to support unmet requirements
Lack of formal consistently shared information
Current WMS Systems
WM systems are extremely back versioned and certain aspects are unsupported
Catalyst Warehouse Management version 9.2
RedPrairie Warehouse Management version 6.0
Retail Management System for Stores (custom inventory system written in-house)
Numerous complex interfaces and custom error handling within SAP ERP
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Process for Reviewing EWM Provide end-to-end warehouse management capabilities for all sites and all divisions
Provide full visibility to all materials across all locations
Close integration between EWM and Manufacturing
License plate bar coding and tracking required
Full RF capabilities
Wave creation and assignment
Elimination of manual processes Clerical Order close Data entry
Improve inventory transfers between sites & plants
Improve batch control at the end customer level
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Rationale for selecting EWM
EWM is now a mature system
Simplify the IT Landscape Consolidate aging and custom applications under one platform Reduce IT complexity – Single Platform Reduce excel, access and other “side” systems Reduce maintenance cost of two disparate WM systems Reduce interface complexity and maintenance cost
Enhanced Capabilities Labor Management Full HU tracking (LPN) Value Added Services Cross Docking Yard Management
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Project Expectations Provide the business with the means to manufacture and fulfill orders in the quickest, most cost effective manner
Gain increased capabilities for labor management
Increased stability and functionality
Utilize current RF infrastructure
Eliminate the need for: Maintaining data in external local sources External tools like EXCEL, ACCESS
Condensed project timeline Project started October 2011 Planned go-live July 2012 Delayed go-live until March 2013
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EWM Processes
Inbound using Layout and Process Oriented Storage Control
Receiving Grown Fruit(Auto Pack)
Receiving External Vendors
Receiving STOs
Receiving Subcontracting Purchase Orders
Transfer Staging Process
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EWM Processes Outbound Process
Outbound DM
Outbound Wholesale process using process oriented storage control
Outbound Shipments to H&D Stores
Outbound Transfers
ECC Shipment to EWM TU Integration
Wave Management Automatic Wave Release Manual Wave Release
Picking Two Step Picking One Step Picking
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Storage Control overview
Process Oriented Storage Control in Outbound Process
Considers the material attributes to determine an appropriate sequence of process steps
Status of individual process steps can be monitored as they are executed
Handling Units are required
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Storage Control overview
Layout Oriented Storage Control in Outbound Process
Considers physical layout of the warehouse Utilization of interim storage areas (pick points, ID points, etc.)
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Labor Management Track people throughout the day and measure performance on individual tasks
Capture direct vs. indirect time
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Work Centers Now Warehouse Managed
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EWM Outbound process flow
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Enhancements Quality Management – Place products automatically on incubation hold and remove it from incubation hold. Providing additional functionality to place product on hold based on class characteristics.
Legacy System Interfaces
World Pick Face – The ability to replenish the running bins based on order quantity (warehouse request quantity) up to maximum bin quantity.
Perform
Replenish
ment
Wave released
Replenishment
program runs in
background
Create
replenishments
No
No YesReplenishment
program again as
scheduled.
Yes
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Enhancements RF Pick and Pack Process - provides RF users the ability to view the Wave description and Wave number on the RF.
Stock Removal Rules - Create delivery types which would then be mapped to the different ODO document types in EWM. The next step in the process is to create a Warehouse Task which is where the BADI would be called to select the Stock Removal Rule based on the ODO document type.
Production Replenishment Tool - Assembly personnel create, and launch the production replenishment requests to produce based on their production schedule by selecting specific amount of component quantities to replenish the production floor.
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Migration Process
Started on Thursday afternoon.
Closed all open orders for production and shipping.
Extracted and cleansed data pulled from previous WMS.
Database backups and system setup.
Configuration and transport migration.
Extract and master data load and validation.
Inventory load, reconciliation and sign off.
System turn over to business 1:00 pm Sunday afternoon.
Controlled processing.
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Lessons Learned
Early informational training to key users is vital for the success of the project.
Defining reporting requirements early in blueprint. Don’t leave reporting needs to the last minute.
Know your master data. Master data drives everything! Spend the time cleansing your data to ensure smooth transition.
Need to have a willingness to accept change process. Without it, the project will not be successful.
Test! Test! Test! Think about exception processing.
Plan for error handling and stuck queues after go-live.
Volume testing and hardware sizing.
