WMS Components of a WMS ROI Hidden Cost

WMS

• • Components of a WMS ROI Hidden Cost Which one is right for you

WMS Definition • Warehouse Management Systems - Software that integrates mechanical and human activities with an information system to effectively manage warehouse business processes and direct warehouse activities. These systems automate receiving, put away, picking, and shipping in warehouses and can prompt workers to do inventory cycle counts. Most support radio-frequency communications, allowing real-time data transfer between the system and warehouse personnel.

WMS Modules • Packing Station - This application consists of a fixed position PC, often with a tether scanner, which is used for non RF picking and packing. It gives users the ability to create carton level ASNs, it supports wave-batch collection in the warehouse, repacking to multiple orders in addition to many other features. • RF Picking - This core module supports multiple styles of RF picking, picking stations, split pack-sizes, batch-pick and repack, shipment labels, and warehouse packing slips. Pick bins are replenished using Hot Replenishment, which is the process of requesting that inventory be replenished to pick bins to meet current sales order requirements. • RF Receiving - This core module supports paperless check-in, product and carton labeling. It also supports non-PO receiving, for warehouses that allow receipt of products into the warehouse that do not appear on a purchase order. • RF Locator - This core module supports bin labeling, real-time multi-bin stock locator, paperless adjustments, and real-time cycle counting. • UPS Shipping - Full two way integration to a high-performance Multi-Carrier Shipping system, with UPS shipping enabled. This is easily upgraded to Multi-Carrier Shipping. • Multi-Carrier Shipping - Rate shopping, pre-release verification, and pre-rating are provided through an integrated Multi-Carrier Shipping System.

WMS Modules • Order Management- Allows you to plan your warehouse activities, allocate stock to specific customers according to your corporate policies, and manage your fill rate and backorders. • Multi-Zone - A zone is an area within a physical location where inventory is stored or different activities are performed. A zone serves to organize stock and warehouse staff workloads. The Multi Zone module allows you define up to 26 zones. This module enables zone picking, pick and pass picking, multi-zone simultaneous and sequential picking, and replenishment by zone. • EOL & Shipping - This module provides Bills of Lading and lets you configure end of line (EOL) settings. EOL is a set of automatic processes that are to be executed once a sales order is completed. These processes include packing slips, carton content labels, communication with integrated shipping systems, and other functions. • Lots/Serial/Expiry - This functionality allows attributes to be assigned to a product. An attribute is characteristic of a product that differentiates it from other products of the same type, such as lot number, serial number, expiry date, color, size, and so on. The attribute number appears in a field after the main product number, separated by a character delimiter such as a slash (/). This module tracks attributes through the warehouse and provides advanced allocation and inventory controls for attributes.

WMS Modules • Advanced Replenishment - This module supports Advanced Replenishment, which is the process of requesting that inventory be replenished from overstock bins to pick bins before the products are actually required to fill sales orders. Warehouses are configured to use of one two types of advance replenishment: min/max, or days on hand. Min/ max replenishment is based on a predefined minimum quantity of product that must be in pick bins. Days on hand replenishment is based on a defined minimum number of days that the product must be available in pick bins. When a dispatcher runs the Advanced Replenishment function in Web Dispatch, the system issues replenishment requests for any bins that are found to be below this minimum. • Kitting - A kit is a unique product composed of a number of other products, sold as a single unit. The kitting functionality enables the collecting and assembling of individual products to create a new, saleable product unit. • Putaway/Slotting/Cube/Weight - This module enables directed putaway, which allows a putaway driver to search for an appropriate bin to which to move a product during Receiving, Fill Bins, and Direct Move functions. Suggestions provided to the user are based on empty bins, or current bin locations. The module also allows slotting reports and cube and weight measurement to improve slotting and cube utilization.

WMS Modules • Remote Monitoring - Remote monitoring is a method of monitoring your warehouse network using your SNMP-enabled switches, to keep your network and hardware running error free and at top performance. Using a secure VPN, our remote monitoring partner, Adeste, connects to your network, and by using just two ports (Ping and SNMP), confirms that all devices are performing as expected. . If any irregularities are discovered (including possible intruders), your IT staff are notified instantly by email. • Web Dispatch - This is the web-based user interface for RADIO BEACON WMS, accessed with Internet Explorer from any client PC. The Web Dispatch core module provides reporting capabilities to monitor daily warehouse operations in real time, and to generate historical reports. Web Dispatch also displays sales, work and purchase orders in the warehouse. To allow warehouse managers to control order processing in the warehouse via Web Dispatch, you should purchase the Order Management module. • Container Receiving - This module enables the process of receiving products into the warehouse against the inbound manifest rather that individual purchase orders. This simplifies check-in, improves accuracy, and speeds your operations. This module also provides the ability to break outbound sales orders into deliveries. • Multi-Location/Site Transfer - The Multi-Location/ Site Transfer module allows a single RADIO BEACON WMS installation to manage multiple locations, controls visibility between locations, and provides tools for efficiently transferring stock between locations. •

WMS Modules • RMAs - This module enables Returned Materials Authorizations (RMAs), which allows customers to return products to the warehouse. It automatically generates purchase order for the returned goods, with the appropriate RMA codes. • Packaging - The packaging functionality supports warehouse with substantial repackaging operations. It helps prioritize and manage the repackaging lines. • Carousels/Conveyors - This module supports various brands of horizontal carousels and vertical lift modules (VLM), plus provides support for conveyor automation. • Click Billing - Allows third-party logistics (3 PL) providers to bill their customers based on activity. It also provides tools to determine and model the costs of warehouse activities. • Multi-Company/3 PL - This functionality supports distribution centers that service multiple companies or are third-party logistic (3 PL) providers, and multi-company warehouses. 3 PLs are specialized ‘outsource’ warehouse operators • Web Order Entry - This module enables purchase orders to be entered into RADIO BEACON WMS through Web Dispatch. Web order entry is used by warehouses that do not have a host system, by third-party logistics (3 PL) providers that do not use a single host system, or to provide a web order-entry portal suitable for B 2 B sales.

WMS Modules • Advanced Web Order Entry - A complete B 2 B solution, which integrates a web-based interface for customer ordering with your WMS. A great tool to improve your customer relationship management by providing: • automatic emails to confirm receipt of order and upon shipment with tracking information; • allowing customers to enter their own PO numbers; • allowing customers to see current order status in real time, as well as ordering history. Demand Forecasting -This module activates the future demand forecasting component of RADIO BEACON’s demand management system. By analyzing past sales records and using basic replenishment and safety stock calculations, RADIO BEACON automatically generates monthly forecasts of the products and quantities that are expected to be ordered in the next forecast period

Cost Savings Major Categories • • Improved Inventory Accuracy Reduced Inventory levels Space Utilization Labor Cost Physical Inventories Reduce/Eliminate Errors Eliminate chargebacks Increased Sales

ROI • Payback worksheets

ADP • ADP, the world’s largest processor of shareholder communications to corporations, banks, brokerage firms and mutual funds, distributes more than 800 million documents to investors worldwide each year. • Reduced labor costs by $150, 000 during the first quarter after implementation • Increased throughput by 30 percent without adding costs or personnel • Increased average number of pallets processed/week by 43 percent • Decreased delivery truck wait time by 60 percent

Direct Fulfillment • Direct Fulfillment is a third-party logistics provider (3 PL) based in Robbinsville, N. J. The company’s services include direct mail marketing, inventory management and order fulfillment, geared primarily toward pharmaceutical companies. • Increased average quality performance accuracy to 99. 5 percent • Reduced labor costs 10 percent • Reduced per-order pick time 12 percent • Streamlined put-away to its 50, 000 locations

Standard Process • Standard Process has been a leader in the field of nutritional supplements for 75 years. The company is committed to a whole food philosophy first introduced by its founder, Dr. Royal Lee. The company processes between 600 and 700 orders per day for a customer base of 20, 000 qualified healthcare professionals nationwide. • Reduced finished goods inventory by 16. 5 percent • Improved shipping efficiency by 35 percent • Reduced shipping expenses substantially

Djangos. com • Djangos. com is the world’s largest new and used music and movie website offering more than 1 million titles, with 19 stores in five major markets and a network of kiosks in four states, all linked with Djangos. com proprietary "real time" technology. • 99% accuracy rate • Orders processed within 4 hours • 97% fill rate, best in industry • Best customer service and return rate in the business • Provided capacity to fill 20, 000 orders daily

Cost Comparison 50 -100 Users Lower Tier Middle Tier Upper Tier Software $ 17, 000 $ 85, 000 $ 140, 000 $ 66, 000 $ 17, 000 $ 80, 000 $ 30, 000 Total Software $ 71, 400 $ 168, 000 $ 250, 000 Hardware Total $ 200, 000 $ 368, 000 $ 200, 000 $ 450, 000 Professional Services Maintenance $ 49, 900 $ 4, 500 $ 200, 000 $ 271, 000

Hidden Costs • Integration – Scope Creep • Custom Code is expensive, time-consuming and risky • Modules add up • Total Cost of Ownership – Maintenance fees – Process Changes => Programming Changes – Customer Compliance Demands

5 Common Mistakes Made in Choosing a WMS? Mistake 1: Not doing enough homework Analyzing and then selecting a warehouse management system takes time and effort. Mistake 2: Misunderstanding the benefits of automation Automation does not fix poorly designed processes It only makes them happen faster. Mistake 3: Ignoring hard-to-quantify benefits Difficult to calculate possible future gains such as increased productivity, better warehouse efficiency, improved customer service should not be overlooked. Mistake 4: Passing the buck Top management and other key personnel within the organization must be involved in the selection and the implementation process. Mistake 5: Underestimating the ramp-up and debug phases of a project

Which WMS is right for you? • Developed for your industry – Fits your core business process • Bolts on to your Business Systems Back Office/ERP/CRM/SCM – Seamless Integration • Standard database ( SQL, Oracle, DB 2, etc. ) • Inherently flexible • Scalable – The right size

Questions?