10 Ways to Turbocharge Your Warehouse Your Path
10 Ways to Turbocharge Your Warehouse Your Path to Becoming “Best in Class” AXUG Denver Regional Chapter Meeting 2 -26 -2018
Presenters Roger Resley Vice President, Microsoft Channel Sales | DSI 2 © 2018 DSI Phillip Murphy Vice President, Microsoft Business Unit | DSI
10 Ways to Turbocharge Your Warehouse Making your warehouse more efficient through better processes and technology ARE YOU STRUGGLING WITH: Excessive paper, manual processes, lost inventory, warehouse tourism, underwhelming order fulfillment, poor customer service and low morale? Learn the key performance metrics, plus to how measure them and fix your business to become Best in Class for the Top 10 KPI’s Eliminate Errors Reduce Operating Costs 3 Improve Customer Service © 2018 DSI Improve Efficiency
Turbocharge a Warehouse? Microsoft Dynamics AX or D 365 for Operations WMS 1, WMS 2 or WHS Mobile Data Collection The ENGINE that drives your business The FUEL that powers your engine TRANSMISSION that delivers the power 4 © 2018 DSI
Why Tune Up Your Warehouse? Expensive assets to operate and maintain Most visible customer facing elements impacting your customer service levels A critical link in your order-to-cash cycle Cash-to-Cash Metrics: $$ Average Days Payable Inventory Days of Supply 5 © 2018 DSI Average Days of Sales Outstanding Major labor component of your business Inefficiencies abound
How is Your Engine Running? 6 © 2018 DSI
Path to Best in Class Identify Benchmark Interpret Your Pain Points Key Performance Indicators the KPI Results Effective Change Management Improve Workflow Processes Physical Facility Improvements Business Process Improvement/Change 7 © 2018 DSI WMS/Information Systems Logic Proper Application Mobile Data Collection+ Business Analytics
Distribution Pain Points Workforce morale/safety FIFO, LIFO, FISH Pick a door, any door Labor performance/cost Hide and Seek Multi-channel effect Restoring Reverse logistics Warehouse tourism Traceability / recalls Transportation costs Supply chain disruptions 8 © 2018 DSI
Engine Diagnostics One can only manage that which can be measured. ” Where do I look and how can I measure? DC Performance Metrics: WERC (Warehouse Education and Research Council) & DC Velocity WATCH Spring 2017: Benchmarking Measures Survey 9 © 2018 DSI
Typical Distribution Center Operations 10 © 2018 DSI
Typical DC Operations INVENTORY CONTROL PICKING PACK/AUDIT/RETURNS STOCKING REPLENISH RECEIVE/YARD ADMIN FLOW THROUGH 11 © 2018 DSI PUTAWAY
DC Workflow Activities Inbound Picking Outbound Includes receiving, putaway, replenishment, stocking, inventory and yard management Stands alone as a critical function in virtually every DC except pure cross -dock operations Includes flow through, cross-dock, pack/audit, loading and yard 12 © 2018 DSI
DC Performance Metrics CUSTOMER OPERATIONS FINANCIAL PERFECT ORDER EMPLOYEE 13 © 2018 DSI CAPACITY/QUALITY CASH TO CASH
Customer Metrics On-time shipments Total order cycle time CUSTOMER Internal order cycle time Perfect order completion index Lost sales (percent of SKUs stocked out) Backorders as a percent of total orders Backorders as a percent of total dollars/units 14 © 2018 DSI
Operations Metrics Dock-to-stock cycle time, in hours Suppliers orders received per hour OPERATIONS Lines received and put away per hour Percent of orders received damage free On-time receipts from supplier Fill rate line / order fill rate Lines picked and shipped per hour Orders picked and shipped per hour Cases picked and shipped per hour Pallets picked and shipped per hour On-time ready to ship 15 © 2018 DSI
Financial Metrics Distribution costs as a percent of sales Distribution costs as a percentage of COGS FINANCIAL Distribution costs per unit shipper Days on hand raw materials Days on hand finished goods inventory Inventory shrinkage as a percent of total inventory 16 © 2018 DSI
Capacity/Quality Metrics Average warehouse capacity used Peak warehouse capacity used CAPACITY/QUALITY Honeycomb percent Inventory count and accuracy by dollars/units Inventory count accuracy by location Order picking accuracy (percent by order) Material handling damage Equipment/forklifts capacity used 17 © 2018 DSI
Other Common Metrics EMPLOYEE PERFECT ORDER CASH TO CASH Annual workforce turnover Percent of orders with on-time delivery Inventory days of supply Productive hours to total hours Percent of orders shipped complete Average days payable Percent of orders shipped damage free Average days of sales outstanding (outbound) Percent of orders sent with correct documentation 18 © 2018 DSI
Which Metrics Matter? 3. 2. X Strong agreement among DCs and warehouses which metrics are critical to measuring performance 1. WERC Survey is Cross-sectional survey by industries excellent indicator Y 19 © 2018 DSI 5. 4. Economic conditions a part of survey WERC Top 12 from 2017 survey is basis for “where to look and how to measure”
Wait, We’re Different, Do Your Metrics Apply? 20 © 2018 DSI
Answering The Big Question WERC sees no statistical difference based on any on the demographics Quantitative performance is quantitative performance! Differences. No doubt. Primarily qualitative in nature 21 Benchmark yourself www. werc. org © 2018 DSI Compare yourself to any or all demographics
WERC Survey Respondents FIGURE 3. Respondents By Industry Utilities/Government 2. 3% Other 5. 6% FIGURE 6. Respondents by Company Size 37. 9% < $100 Million 32. 0% 50% 40% $100 Million - $1 Billion 30% 30. 0% 20% > $1 Billion 10% 0% Wholesale Distribution 6. 0% Retail 29. 6% 3 rd Party Warehouse 28. 2% Manufacturing 22. 7% Life Sciences – Pharmaceuticals 2. 8% 22 © 2018 DSI Life Sciences – Medical Devices 2. 8%
Top 12 Most Popular Metrics 2017 Rank 2016 Rank 2015 Rank Average Warehouse Capacity Used – Capacity 1 2 6 Order-picking Accuracy (percent by order) – Quality 2 3 5 On-time Shipments – Customer 3 1 1 Peak Warehouse Capacity Used – Capacity 4 7 7 Part-time Workforce to Total Workforce – Employee 5 - - Overtime Hours to Total Hours – Employee 6 - - Contract Employees to Total Workforce – Employee 7 - - On-time Ready to Ship – Outbound Operations 8 12 - Cross Trained Percentage – Employee 9 - - Inventory County Accuracy by Dollars per Unit – Quality 10 - - Percent of Supplier Orders Received Damage Free – Inbound Operations 11 6 10 Order Fill Rate – Outbound Operations 12 10 - 23 © 2018 DSI
Top 10 Metrics by Strategy TOP 10 METRICS UTILIZED BY STRATEGY Top 10 Metrics - Performance Cost Leadership Strategy Customer Service Strategy Product/Market Innovation Strategy Mix: Be All Things To All People On-time Shipments Average Warehouse Capacity Used Dock-to-Stock Cycle Time, in Hours Order Picking Accuracy (Percent by Order) Internal Order Cycle Time Peak Warehouse Capacity Used Total Order Cycle Time - Fill Rate - Lines Received and Putaway per Hour - - Lines Picked and Shipped per Person Hour - - 24 © 2018 DSI
1. On-Time Shipments Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CUSTOMER METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Less than 95% >=95 and < 97. 89% >=97. 89 and <99% >=99 and <99. 8% >=99. 8% 98. 15% Greater than 48 Hours >=24 and <48 >=8 and <24 >=3 and <8 <3 Hours 14 Hours Greater than 28. 6 Hours >=15. 09 and <28. 6 >=6 and <15. 09 >=2. 44 and <6 <2. 44 Hours 8 Hours Greater than 8. 18% >=3. 24 and <8. 186% >=1 and <3. 24% >=0. 05 and <1% <0. 05% 2% On-time Shipments Total Order Cycle Time Internal Order Cycle Time Backorders as a Percent of Total Lines Column 1: Metric This represents the metric being examined (metric definitions can be found on pages 12 -15). Column 2 -6: Quintile Rankings These columns split all data responses into five equally divided groups. Each quintile ranking indicates 20% of the responses, with the five representing: Major Opportunity: Represents the lowest 20% of responses 20 -40 th Disadvantage: Represents responses in the percentile Typical: Represents responses in the 40 -60 th percentile CUSTOMER METRICS On-Time Shipments Advantage: Represents responses in the 60 -80 th percentile Best Practice: Represents top 20% of all responses DEFINITION The percentage of orders shipped at the planned time (shipped means off the dock and in transit to its final destination). NOTE: The time to ship may be defined by the customer, or it may be determined by the shipper in order to accommodate an on-time delivery. 25 © 2018 DSI Column 7: Median This indicates the actual median performance of all respondents. CALCULATION Number of order shipped on-time/ Total number of orders shipped
2. Internal Order Cycle Time in Hours Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CUSTOMER METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Less than 95% >=95 and < 97. 89% >=97. 89 and <99% >=99 and <99. 8% >=99. 8% 98. 15% Greater than 48 Hours >=24 and <48 >=8 and <24 >=3 and <8 <3 Hours 14 Hours Greater than 28. 6 Hours >=15. 09 and <28. 6 >=6 and <15. 09 >=2. 44 and <6 <2. 44 Hours 8 Hours Greater than 8. 18% >=3. 24 and <8. 186% >=1 and <3. 24% >=0. 05 and <1% <0. 05% 2% On-time Shipments Total Order Cycle Time Internal Order Cycle Time Backorders as a Percent of Total Lines CUSTOMER METRICS Internal Order Cycle Time DEFINITION The average internal time between when the order was received from the customer and order shipment by the supplier. NOTE: Order shipment is defined as off the dock, onto the shipping conveyance and ready for transit. 26 © 2018 DSI CALCULATION Excluding non-working days: sum of (Time order shipment – Time order received from the customer) / Number of orders shipped
3. Dock to Stock Cycle Time in Hours Inbound Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 OPERATIONS METRICS MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Greater than 22. 06 Hours >=8 and < 22. 06 Hours >=4 and <8 Hours >=2 and <4 Hours <2 Hours 6 Hours Less than 9. 52 per Hour >=9. 52 and < 20 per Hour >= 20 and <26 per Hour >= 26 and <59 per Hour >= 59 per Hour 22. 5 per Hour Less than 90% >=90 and <95% >=95 and <98% >=98 and <99. 26% >=99. 26% 97% Less than 94. 4% >=94. 4 and <97% >=97 and <99% >=99 and <99. 5% >=99. 5% 98. 10% Less than 80% >=80 and <90% >=90 and <95% >=95 and <99% >=99% 95% Dock-to-Stock Cycle Time, in Hours Lines Received and Putaway per Hour Percent of Supplier Orders Received with Correct Documents Percent of Supplier Orders Received Damage Free On-time Receipts from Supplier INBOUND METRICS Dock-to-Stock Cycle Time, in Hours DEFINITION The dock-to-stock cycle time equals the time (typically measured in hours) required to putaway goods. The cycle time begins when goods arrive from the supplier and ends when those goods are putaway in the warehouse and recorded into the inventory management system. 27 © 2018 DSI CALCULATION For a given period: sum of the cycle time in hours for all supplier receipts / Total number of supplier receipts
4. Total Order Cycle Time in Hours Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CUSTOMER METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Less than 95% >=95 and < 97. 89% >=97. 89 and <99% >=99 and <99. 8% >=99. 8% 98. 15% Greater than 48 Hours >=24 and <48 >=8 and <24 >=3 and <8 <3 Hours 14 Hours Greater than 28. 6 Hours >=15. 09 and <28. 6 >=6 and <15. 09 >=2. 44 and <6 <2. 44 Hours 8 Hours Greater than 8. 18% >=3. 24 and <8. 186% >=1 and <3. 24% >=0. 05 and <1% <0. 05% 2% On-time Shipments Total Order Cycle Time Internal Order Cycle Time Backorders as a Percent of Total Lines CUSTOMER METRICS Total Order Cycle Time DEFINITION The average end-to-end time between order placement by the customer and order receipt by the customer. 28 © 2018 DSI CALCULATION Excluding non-working days: sum of (Time order received by customer – Time order placed)/Total number of orders shipped
5. Order Picking Accuracy Percent by Order Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CAPACITY/QUALITY METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Average Warehouse Capacity Used** Less than 70% >=70 and <80% >=80 and <85% >=85 and <91. 6% >=91. 6% 84% Peak Warehouse Capacity Used** Less than 85% >=85 and <90% >=90 and <95% >=95 and <100% >=100% 95% Honeycomb Percent Less than 25% >=25 and 50% >=50 and 75% >=75 and <88% >=88% 66. 60% Less than 91. 782% >=91. 782 and <98% >=98 and <99. 32% >=99. 32 and <99. 9% >=99. 9% 99% Less than 98% >=98 and <99% >=99 and <99. 6% >=99. 6 and <99. 9% >=99. 9% 99. 45% Inventory Count Accuracy by Dollars/Unit Order-Picking Accuracy (Percent by Order) OUTBOUND METRICS Order Picking Accuracy DEFINITION This measures the accuracy of the orders picking process where errors may be caught prior to shipment such as during packaging. 29 © 2018 DSI CALCULATION Orders picked correctly / Total orders picked
6. Average Warehouse Capacity Used Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CAPACITY/QUALITY METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Average Warehouse Capacity Used** Less than 70% >=70 and <80% >=80 and <85% >=85 and <91. 6% >=91. 6% 84% Peak Warehouse Capacity Used** Less than 85% >=85 and <90% >=90 and <95% >=95 and <100% >=100% 95% Honeycomb Percent Less than 25% >=25 and 50% >=50 and 75% >=75 and <88% >=88% 66. 60% Less than 91. 782% >=91. 782 and <98% >=98 and <99. 32% >=99. 32 and <99. 9% >=99. 9% 99% Less than 98% >=98 and <99% >=99 and <99. 6% >=99. 6 and <99. 9% >=99. 9% 99. 45% Inventory Count Accuracy by Dollars/Unit Order-Picking Accuracy (Percent by Order) OUTBOUND METRICS Average Warehouse Capacity Used DEFINITION The average amount of warehouse capacity used over a specific amount of time (month to month or yearly). 30 © 2018 DSI CALCULATION Average capacity used / Average capacity available
7. Peak Warehouse Capacity Used Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CAPACITY/QUALITY METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Average Warehouse Capacity Used** Less than 70% >=70 and <80% >=80 and <85% >=85 and <91. 6% >=91. 6% 84% Peak Warehouse Capacity Used** Less than 85% >=85 and <90% >=90 and <95% >=95 and <100% >=100% 95% Honeycomb Percent Less than 25% >=25 and 50% >=50 and 75% >=75 and <88% >=88% 66. 60% Less than 91. 782% >=91. 782 and <98% >=98 and <99. 32% >=99. 32 and <99. 9% >=99. 9% 99% Less than 98% >=98 and <99% >=99 and <99. 6% >=99. 6 and <99. 9% >=99. 9% 99. 45% Inventory Count Accuracy by Dollars/Unit Order-Picking Accuracy (Percent by Order) OUTBOUND METRICS Peak Warehouse Capacity Used DEFINITION The amount of warehouse capacity used during designed peak seasons. 31 © 2018 DSI CALCULATION Peak capacity used / Capacity available
8. Backorders as a Percent of Total Lines Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CUSTOMER METRICS* MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Less than 95% >=95 and < 97. 89% >=97. 89 and <99% >=99 and <99. 8% >=99. 8% 98. 15% Greater than 48 Hours >=24 and <48 >=8 and <24 >=3 and <8 <3 Hours 14 Hours Greater than 28. 6 Hours >=15. 09 and <28. 6 >=6 and <15. 09 >=2. 44 and <6 <2. 44 Hours 8 Hours Greater than 8. 18% >=3. 24 and <8. 186% >=1 and <3. 24% >=0. 05 and <1% <0. 05% 2% On-time Shipments Total Order Cycle Time Internal Order Cycle Time Backorders as a Percent of Total Lines CUSTOMER METRICS Backorders as a Percentage of Total Lines DEFINITION The portion of total orders that are held and shipped late due to lack of availability of stock. Can be measured by lines or by PO, by units or by dollar value. 32 © 2018 DSI CALCULATION Number of order lines held and not shipped / Total number of order lines
9. Inventory Days of Supply Table 5. Quintile Performance Classifications for Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 CASH-TO-CASH METRICS MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Greater than 90 Days >= 46. 86 and <90 Days >=33. 04 and <46. 86 Days >=14 and <33. 04 Days >=14% 45 Days Average Days Payable Greater than 56. 98 Days >= 40 and <56. 98 Days >=30 and <40 Days >=15 and <30 Days <15 Days 30 Days Average Day of Sales Outstanding Greater than 56. 8 Days >=35 and <56. 8 Days >=22 and <35 Days >=5 and <22 Days <5 Days 30 Days Inventory Days of Supply CASH-TO-CASH METRICS Inventory Days of Supply DEFINITION Measure of quality of inventory-on-hand, in relation to number of days for usage which will be covered. Total gross value of inventory at standard cost before reserves for excess and obsolescence. Only includes inventory on company book; future liabilities should not be included. 33 © 2018 DSI CALCULATION Current (or period ending) total inventory value / (Total annual COGS / 365)
10. Percent of Orders Received Damage Free Inbound Metrics COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 OPERATIONS METRICS MAJOR OPPORTUNITY DISADVANTAGE TYPICAL ADVANTAGE BEST-IN-CLASS MEDIAN Greater than 22. 06 Hours >=8 and < 22. 06 Hours >=4 and <8 Hours >=2 and <4 Hours <2 Hours 6 Hours Less than 9. 52 per Hour >=9. 52 and < 20 per Hour >= 20 and <26 per Hour >= 26 and <59 per Hour >= 59 per Hour 22. 5 per Hour Less than 90% >=90 and <95% >=95 and <98% >=98 and <99. 26% >=99. 26% 97% Less than 94. 4% >=94. 4 and <97% >=97 and <99% >=99 and <99. 5% >=99. 5% 98. 10% Less than 80% >=80 and <90% >=90 and <95% >=95 and <99% >=99% 95% Dock-to-Stock Cycle Time, in Hours Lines Received and Putaway per Hour Percent of Supplier Orders Received with Correct Documents Percent of Supplier Orders Received Damage Free On-time Receipts from Supplier INBOUND METRICS Percent of Supplier Orders Received Damage Free DEFINITION The number of orders that are processed damage free as a percentage of total orders. 34 © 2018 DSI CALCULATION Number of supplier orders that are processed damage free / Total supplier orders processed in the measurement period
Achieving Best in Class 35 © 2018 DSI
Path to Best in Class Identify Benchmark Interpret Your Pain Points Key Performance Indicators the KPI Results Effective Change Management Improve Workflow Processes Physical Facility Improvements Business Process Improvement/Change 36 © 2018 DSI WMS/Information Systems Logic Proper Application Mobile Data Collection + Business Analytics
Improving Workflows Review Walkthrough Specialist Process review by operational area/metric category DC walkthrough audit using best practices template questionnaire Recommend independent “Supply Chain Specialist” engagement Microsoft Mobile Data Collection Collaborate Involve a Microsoft Dynamics partner who implements Inventory and WMS business process logic Involve mobile data collection vendor with knowledge of transactions automated Collaborate to determine changes needed in facility operations and supporting IT systems to improve the metrics 37 © 2018 DSI
Final Steps Warehouse performance metrics understood Key KPIs measured and ready to manage for “Best in Class” Time to tune your Microsoft Dynamics Engine 38 Best Practices audit complete with focus on facility improvements and better work flows Diagnostics done WMS 1, WMS 2, or WHS Mobile Data Collection The FUEL that powers your engine TRANSMISSION that delivers the power © 2018 DSI
Microsoft Dynamics 365 for Operations & Dynamics AX 2009/2012 Warehouse Management Options WMS 2 39 © 2018 DSI WHS
Microsoft Dynamics 365 for Operations & Dynamics AX 2009/2012 Warehouse Management Options • Basic warehousing option • Supports all inventory transactions from receiving through shipping • Available in Dynamics 365 for Operations • No integrated data collection WMS 2 40 © 2018 DSI WHS
Microsoft Dynamics 365 for Operations & Dynamics AX 2009/2012 Warehouse Management Options • Consolidated picking • Pallet transport • Multiple sales orders per shipment • Dock management; staging capabilities • No integrated data collection • Deprecated in Dynamics 365 for Operations WMS 2 41 © 2018 DSI WHS
Microsoft Dynamics 365 for Operations & Dynamics AX 2009/2012 Warehouse Management Options • Advanced warehousing options: work templates, location directives, license plates pallet handling, wave picking, etc. • IP acquired from Blue Horseshoe (WAX + TRAX) • Available in Dynamics 365 for Operations to replace WMS 2 • Rudimentary data collection (Blue Horseshoe IP) • Known gaps, bugs, major performance issues with on-board scanning WMS 2 42 © 2018 DSI WHS
Achieving Best in Class Requires Mobile Data Collection 43 © 2018 DSI
Benefits of Automated Data Collection 1. More Accurate and Timely Information § 6. Production Visibility The use of bar code plus data validation techniques ensures that information is captured quickly and efficiently 2. Increased Productivity § Increased material handler productivity through reduced search time optimized flow, and dispatched tasks 3. Reduced Overhead § 7. Quality Control § § Real cost savings through improved inventory management more inventory turns 5. Reduce Shipping Errors § Production management, customer service and even customers can have instant access to shop floor status and can monitor performance Improved customer satisfaction through quality control verification 8. Traceability ADC can reduce, if not eliminate, clerical overhead costs, duplicate paperwork, PO, WO, shipping docs 4. Increased Inventory Accuracy § § You reduce cost and get your answers in minutes, not days, to minimize potential problems 9. Faster Employee Start-up Time § Improve employee productivity with less cost 10. Reduced Inventory Reduced shipping errors means happier customers § 44 © 2018 DSI Effective FIFO/LIFO (No more FISH)
Return On Investment: Hardfor Expense Savings Where to look a return Consistent with technology returns on investment, ADC provides both hard and soft expense savings that contribute to a company’s ROI on technology. The most common areas for these savings include: Soft Expense Savings Hard Expense Savings Direct Labor Including benefits, taxes and variable labor costs Inventory Reduction Based on having fast, reliable on-hand data Holding Costs Obsolescence, scrap, loss, deterioration, shrinkage Warehouse Costs Insurance, power, property taxes, physical counts, data entry, labor Data Entry Faster, verified transaction times Work Duplication Eliminate double-handling of every receipt, PO, WO… Materials Utilization More efficient use of raw materials, reduced scrap System Expansion Adding RF access points and devices vs. cable and computer terminals Fixed Asset Savings Less equipment needed, reduced equipment loss 45 © 2018 DSI Indirect Labor Productivity gains, less supervisory intervention, faster management meetings Customer Retention Faster, more accurate fulfillment; it is 5 -10 times more expensive to acquire a customer than retain one Operational Efficiency Real-time data prompts replenishment and reorders, enables immediate back flushing, increases picking accuracy, directs staff & material allocation, etc. Better, Faster Data Access to real-time data yields better, faster decisions Inventory Accuracy Increases to nearly 100% decreases absolute variance Productivity Increase in orders shipped, items manufactured
Data Collection Options 2003 2004 Microsoft Dynamics AXapta 2. 5 Microsoft Dynamics AXAPTA 3. 0 DSI® Scan. Work. X® supports WHS on D 365 2006 2009 Microsoft Dynamics AX 4. 0 Microsoft Dynamics AX 2009 2012 Microsoft Dynamics AX 2012 R 1 2013 Microsoft Dynamics AX 2012 R 2 2014 Microsoft Dynamics AX 2012 R 3 2016 Microsoft Dynamics 365 for Operations 3 rd Party Mobile Data Collection Solution Required Advanced Warehouse WHS with mobile device support DSI® Scan. Work. X® supports WHS on 2012 R 3 46 © 2018 DSI
DSI® Scan. Work. X® Product Differentiators 47 © 2018 DSI
A Product of Many Firsts Only Mobile Data Collection product with WERC imbedded Power BI based performance metric analytic dashboards Product to be built from ground up for Microsoft ERP systems FIRST Product to be certified for Microsoft ERP systems Product to support all 3 Warehouse Module Options: WMS 1, WMS 2, WHS Only Mobile Data Collection product available on App. Source for Microsoft Dynamics 365 for Operations FIRST 48 © 2018 DSI
For the Uninitiated • Unparalleled configurability • Multiple native platforms, plus HTML 5 • Streamlined user experience • Second-to-none customer service • Clean, tight integration with the ERP • All customers fully referenceable • 75+ standard transactions • Ready now for Dynamics 365 for Operations 49 © 2018 DSI
Exceptional User Experience § Logical transaction flow; one screen per transaction § Intuitive auto-fill fields § Rapid-scanning and Smart Barcode support § Must-scan fields available to ensure integrity § Intuitive lists of values and lookup tools § Clear, concise error messages § Real-time and asynchronous worker paging and interactive messaging § Real-time response and validation § Navigate by keypad, touch, click or swipe 50 © 2018 DSI
Powerful and Visual Business Analytics Remember, one can only manage that which can be measured. ” Scan. Work. X helps you measure and tune your engine 51 © 2018 DSI
Turbocharge Your Warehouse Summary 52 © 2018 DSI
Turbocharged Summary Engine Diagnostics: Tune Your Engine: Proper Fuel Mix: Powerful Transmission: WERC Benchmarks Implement best practices/ Optimized workflows/ Facility Leverage Microsoft Dynamics 365 for Operations ERP Mobile data collection to drive results 53 © 2018 DSI TOP Fuel: Using only best mechanics!
Questions Thank You! For further information, please contact 816. 416. 5641 dsiglobal. com/ax info@dsiglobal. com www. supplychainappstore. com
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