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Trends in Warehouse Automation 
Capgemini and SAP
In collaboration with 
2 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Today’s Agenda 
Innovations 
1 
Best-in-Class Examples 
2 
Spotlight on Sobeys 
3 
SAP EWM Roadmap 
4 
Trends in Technology 
5 
Q&A 
6
In collaboration with 
3 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
At the Forefront: Innovations in Distribution 
Distribution Centers can now provide: 
Competitive Advantage 
Improved Customer Service 
Enhanced Revenue 
A refocused strategy toward more automation enabled by: 
Lowered cost of innovation 
Wearable devices 
Flexible WMS Models (Cloud, Saas) 
The Internet of Things 
Machine to Machine 
Sentient Technologies 
Digital Augmentation: Wearables 
Auto Guided Vehicles 
Mobility
In collaboration with 
4 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Innovation in Distribution Center Automation 
DC Automation 
Order Selection 
SAP & Vuzix – Hands free, visual and voice combined picking 
MHE & Automation 
Sobeys – A big move into Automation. Cranes, Palletizer, De-Palletizer….. 
Shuttling & Pallet Movement 
Pallet transport AGV – Move pallets through the DC with unmanned vehicles 
Bobcat – Automated Pallet inventory and forklift tracking 
Next-Generation Productivity Enhancements 
SAP MFS framework – Directly connect WMS to the PLC 
The MFS dashboard - Analytics – is there something useful the automation data can tell us. 
DC Automation 
AGV 
Wearables 
Machine to Machine 
Intelligent Agents
In collaboration with 
5 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Complete warehouse small-item picking scenario (inbound and outbound processing) 
QR-Code and barcode scanning using a head- mounted display 
Voice recognition 
Innovation in Augmented Reality, Powered by SAP EWM 
DC Optimization 
Handheld device makes the picking of item cumbersome 
Intensive interaction with handheld device 
Alternative (Pick-by-Light or Pick-by-Voice) are either too expensive or limited in functionality 
Challenges 
Features & Capabilities 
Hands-free experience allows employee to carry resources freely 
Minimizes interaction between user and device 
Enables faster picking scenario due to constant display of information and scanning capabilities of the head-mounted display 
Value Impact
In collaboration with 
6 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Innovation in Pallet and Forklift Tracking 
Bobcat uses Swisslog “SmartLIFT” technology to combine WMS data with sensor technology, resulting in an "indoor GPS” that provides information on current lift truck speed, location, and direction of pallets and their associated product. This can deliver accurate location information on every pallet handled and improves driver productivity and inventory accuracy. 
DC Optimization 
Value Proposition 
1)Eliminates scanning, reduces labor and number of forklifts 
2)Improves inventory accuracy to reduce cycle counts, lost time searching for inventory and safety stock 
3)Improves movement and efficiency of forklifts
In collaboration with 
7 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Innovation in Automated Standard Fork Lifts 
Guided by laser navigation, they move independently through the warehouse without fixed floor installations, thereby permitting multi-use of the transportation routes. 
The automated forklift trucks transport all types of goods through the warehouse on load carriers (pallet or roll container) on an optimized transport path. The loading and unloading of goods is possible to a height of 10 meters, and can be done in the block system as well as in racks. 
DC Optimization 
Value Proposition 
1)Extends vehicle life 
2)Lowers operating costs and labor 
3)Reduces maintenance 
4)Safer
In collaboration with 
8 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Sobeys Case Study 
1)Partnered with MHE provider to operate the equipment 
2)Engaged employees from the beginning 
3)Built the solution to allow for 50% growth in capacity 
4)Implemented in two facilities 
Metrics 
Receive 720 cases/hr 
Pick 500 cases/hr 
Reduce cost by 30 cents/case 
Reduce labor 30-40% 
DC Optimization 
https://www.youtube.com/watch?v=dOf9SAJmrCU
©2012 SAP AG. All rights reserved. 
9 
Warehouse Automation with SAP ‒ Architectural Evolution 
SAP ERP 
PLC 
3rd Pty. MFS 
SAP LES 
SAP ERP 
SAP LES 
PLC 
SAP TRM 
SAP ERP 
PLC 
3rd Pty. 
MFS 
3rd Pty. 
WM 
Inventory 
Warehouse Mgmt. 
Material Flow 
Control of 
Sensors & Drives 
3rd Pty 
MFS 
SAP ERP 
SAP EWM SAP MFS 
PLC 
SAP PCo 
RFC-Adapter 
Since 2008 
3rd Pty. 
MFS 
SAP EWM 
SAP ERP 
PLC 
Since 2005
©2012 SAP AG. All rights reserved. 
10 
MFS – Types of Equipment 
Conveyers 
Pallets / cases / packages 
Transfer cars 
Sorter 
Label applicators 
Pick-Pack-Pass picking principle 
Storage Retrieval Machines 
ASRS pallets / cases 
Goods-to-man picking principle 
Subsystems 
Monorail system 
Automated guided vehicle systems (AGV)
©2014 SAP SE or an SAP affiliate company. All rights reserved. 
11 
Internal 
Innovations for Warehousing Management 
Multi Deep Warehousing 
Solution Round-offs 
Dock Appointment Scheduling web collaboration for Carriers 
Extended Labor Demand Planning 
TCO / TCI reduction 
Zero Down time 
Quality Management 
Support end to end process for recurring inspection 
Tight integration with ERP 
Inspection before Goods receipt 
ECC 
EWM 
Support for multi-depth storage types 
Easily monitor and consume MFS data 
Reduce implementation costs and streamline process
©2014 SAP SE or an SAP affiliate company. All rights reserved. 
12 
Internal 
Innovations for Warehousing Management 
Staging & Consumption 
Production/Process Order in EWM 
EWM is the leading system 
Work Center / RF / MES 
Posts consumption in EWM 
Goods Receipt from Production 
EWM is the leading system 
RF / MES 
Performance (hole-in-the-wall pallet receiving 
Enhanced Production Integration
In collaboration with 
13 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Trends in Automation The 360 degree view of automation and its impact on operations. 
Discussion Points 
Impact of Technology 
Massachusetts Institute of Technology researchers Andrew McAfee and Erik Brynjolfsson – 
AI, Robotics, and the Future of Jobs.” Workers are losing the race between education and technology. This may be exacerbating a longer-term trend in which capital has gained the upper hand on labor since the 1970s’. 
Labor vs Capital 
And Talent 
Sites will be more capital intensive. The P&L will move more costs to balance sheet 
Equipment can be an encumbrance to nimble operational configuration and flexibility in your supply chain network 
Skilled technicians are needed to keep equipment running 
Impact 
(48%) envision a future in which robots and digital agents have displaced significant numbers of both blue- and white- collar 
(52%) expect that technology will not displace more jobs. Many jobs will be taken over by robots or digital agents by 2025. But they have faith that human ingenuity will create new jobs, 
http://www.pewinternet.org/2014/08/06/future-of-jobs/
In collaboration with 
14 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Trends in Technology How can we leverage? 
Discussion Points 
Machine to Machine 
M2M network uses a sensor or device to monitor activity or a status change: inventory levels, temperature changes or delivery zip code arrival. 
The data is sent to another device or application, which can analyze the event and take further action. 
Vendor auto-replen for supplies 
Trailer Moves 
Delivery Confirmation 
Stock Outs 
Temperature variance 
Intelligent Agents 
An intelligent agent is a software that allows people to delegate work to the agent software to perform repetitive tasks, remember things you forgot, summarize complex data, learn from you and even make recommendations to you. 
Waveless Picking 
Trigger Cycle Counts based on inventory adjustments, stock outs and miss-picks 
Make staffing level and overtime recommendations based on current rate of work 
Trailer Load planning 
Predictive Analytics and Machine Learning 
Learn from your data and inform decision makers before things happen. Monitor productivity, run rates, quality and other key metrics and dynamically modify the logic that controls those processes. 
Adjust sorter speed and other automated equipment run rates 
Build order waves and load plans dynamically 
Next Generation 
Smart technology and analytics are the next-gen for continuous improvement in operations
In collaboration with 
15 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Questions?
In collaboration with 
16 
The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. 
Contacts 
Sundip Naik 
sundip.naik@capgemini.com 
John McDonnell 
john.mcdonnell@sap.com 
Joe Vernon 
joe.vernon@capgemini.com 
Richard Kirker 
richard.kirker@sap.com 
www.sap.com/ewm
The information contained in this presentation is proprietary. 
© 2014 Capgemini. All rights reserved. 
www.capgemini.com 
About Capgemini 
With almost 140,000 people in over 40 countries, 
Capgemini is one of the world's foremost providers of 
consulting, technology and outsourcing services. The Group 
reported 2013 global revenues of EUR 10.1 billion (more 
than $13 billion USD). 
Together with its clients, Capgemini creates and delivers 
business and technology solutions that fit their needs and 
drive the results they want. A deeply multicultural 
organization, Capgemini has developed its own way of 
working, the Collaborative Business ExperienceTM, and 
draws on Rightshore ®, its worldwide delivery model. 
Rightshore® is a trademark belonging to Capgemini

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Capgemini and SAP trends in warehouse automation

  • 1. Trends in Warehouse Automation Capgemini and SAP
  • 2. In collaboration with 2 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Today’s Agenda Innovations 1 Best-in-Class Examples 2 Spotlight on Sobeys 3 SAP EWM Roadmap 4 Trends in Technology 5 Q&A 6
  • 3. In collaboration with 3 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. At the Forefront: Innovations in Distribution Distribution Centers can now provide: Competitive Advantage Improved Customer Service Enhanced Revenue A refocused strategy toward more automation enabled by: Lowered cost of innovation Wearable devices Flexible WMS Models (Cloud, Saas) The Internet of Things Machine to Machine Sentient Technologies Digital Augmentation: Wearables Auto Guided Vehicles Mobility
  • 4. In collaboration with 4 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Innovation in Distribution Center Automation DC Automation Order Selection SAP & Vuzix – Hands free, visual and voice combined picking MHE & Automation Sobeys – A big move into Automation. Cranes, Palletizer, De-Palletizer….. Shuttling & Pallet Movement Pallet transport AGV – Move pallets through the DC with unmanned vehicles Bobcat – Automated Pallet inventory and forklift tracking Next-Generation Productivity Enhancements SAP MFS framework – Directly connect WMS to the PLC The MFS dashboard - Analytics – is there something useful the automation data can tell us. DC Automation AGV Wearables Machine to Machine Intelligent Agents
  • 5. In collaboration with 5 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Complete warehouse small-item picking scenario (inbound and outbound processing) QR-Code and barcode scanning using a head- mounted display Voice recognition Innovation in Augmented Reality, Powered by SAP EWM DC Optimization Handheld device makes the picking of item cumbersome Intensive interaction with handheld device Alternative (Pick-by-Light or Pick-by-Voice) are either too expensive or limited in functionality Challenges Features & Capabilities Hands-free experience allows employee to carry resources freely Minimizes interaction between user and device Enables faster picking scenario due to constant display of information and scanning capabilities of the head-mounted display Value Impact
  • 6. In collaboration with 6 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Innovation in Pallet and Forklift Tracking Bobcat uses Swisslog “SmartLIFT” technology to combine WMS data with sensor technology, resulting in an "indoor GPS” that provides information on current lift truck speed, location, and direction of pallets and their associated product. This can deliver accurate location information on every pallet handled and improves driver productivity and inventory accuracy. DC Optimization Value Proposition 1)Eliminates scanning, reduces labor and number of forklifts 2)Improves inventory accuracy to reduce cycle counts, lost time searching for inventory and safety stock 3)Improves movement and efficiency of forklifts
  • 7. In collaboration with 7 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Innovation in Automated Standard Fork Lifts Guided by laser navigation, they move independently through the warehouse without fixed floor installations, thereby permitting multi-use of the transportation routes. The automated forklift trucks transport all types of goods through the warehouse on load carriers (pallet or roll container) on an optimized transport path. The loading and unloading of goods is possible to a height of 10 meters, and can be done in the block system as well as in racks. DC Optimization Value Proposition 1)Extends vehicle life 2)Lowers operating costs and labor 3)Reduces maintenance 4)Safer
  • 8. In collaboration with 8 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Sobeys Case Study 1)Partnered with MHE provider to operate the equipment 2)Engaged employees from the beginning 3)Built the solution to allow for 50% growth in capacity 4)Implemented in two facilities Metrics Receive 720 cases/hr Pick 500 cases/hr Reduce cost by 30 cents/case Reduce labor 30-40% DC Optimization https://www.youtube.com/watch?v=dOf9SAJmrCU
  • 9. ©2012 SAP AG. All rights reserved. 9 Warehouse Automation with SAP ‒ Architectural Evolution SAP ERP PLC 3rd Pty. MFS SAP LES SAP ERP SAP LES PLC SAP TRM SAP ERP PLC 3rd Pty. MFS 3rd Pty. WM Inventory Warehouse Mgmt. Material Flow Control of Sensors & Drives 3rd Pty MFS SAP ERP SAP EWM SAP MFS PLC SAP PCo RFC-Adapter Since 2008 3rd Pty. MFS SAP EWM SAP ERP PLC Since 2005
  • 10. ©2012 SAP AG. All rights reserved. 10 MFS – Types of Equipment Conveyers Pallets / cases / packages Transfer cars Sorter Label applicators Pick-Pack-Pass picking principle Storage Retrieval Machines ASRS pallets / cases Goods-to-man picking principle Subsystems Monorail system Automated guided vehicle systems (AGV)
  • 11. ©2014 SAP SE or an SAP affiliate company. All rights reserved. 11 Internal Innovations for Warehousing Management Multi Deep Warehousing Solution Round-offs Dock Appointment Scheduling web collaboration for Carriers Extended Labor Demand Planning TCO / TCI reduction Zero Down time Quality Management Support end to end process for recurring inspection Tight integration with ERP Inspection before Goods receipt ECC EWM Support for multi-depth storage types Easily monitor and consume MFS data Reduce implementation costs and streamline process
  • 12. ©2014 SAP SE or an SAP affiliate company. All rights reserved. 12 Internal Innovations for Warehousing Management Staging & Consumption Production/Process Order in EWM EWM is the leading system Work Center / RF / MES Posts consumption in EWM Goods Receipt from Production EWM is the leading system RF / MES Performance (hole-in-the-wall pallet receiving Enhanced Production Integration
  • 13. In collaboration with 13 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Trends in Automation The 360 degree view of automation and its impact on operations. Discussion Points Impact of Technology Massachusetts Institute of Technology researchers Andrew McAfee and Erik Brynjolfsson – AI, Robotics, and the Future of Jobs.” Workers are losing the race between education and technology. This may be exacerbating a longer-term trend in which capital has gained the upper hand on labor since the 1970s’. Labor vs Capital And Talent Sites will be more capital intensive. The P&L will move more costs to balance sheet Equipment can be an encumbrance to nimble operational configuration and flexibility in your supply chain network Skilled technicians are needed to keep equipment running Impact (48%) envision a future in which robots and digital agents have displaced significant numbers of both blue- and white- collar (52%) expect that technology will not displace more jobs. Many jobs will be taken over by robots or digital agents by 2025. But they have faith that human ingenuity will create new jobs, http://www.pewinternet.org/2014/08/06/future-of-jobs/
  • 14. In collaboration with 14 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Trends in Technology How can we leverage? Discussion Points Machine to Machine M2M network uses a sensor or device to monitor activity or a status change: inventory levels, temperature changes or delivery zip code arrival. The data is sent to another device or application, which can analyze the event and take further action. Vendor auto-replen for supplies Trailer Moves Delivery Confirmation Stock Outs Temperature variance Intelligent Agents An intelligent agent is a software that allows people to delegate work to the agent software to perform repetitive tasks, remember things you forgot, summarize complex data, learn from you and even make recommendations to you. Waveless Picking Trigger Cycle Counts based on inventory adjustments, stock outs and miss-picks Make staffing level and overtime recommendations based on current rate of work Trailer Load planning Predictive Analytics and Machine Learning Learn from your data and inform decision makers before things happen. Monitor productivity, run rates, quality and other key metrics and dynamically modify the logic that controls those processes. Adjust sorter speed and other automated equipment run rates Build order waves and load plans dynamically Next Generation Smart technology and analytics are the next-gen for continuous improvement in operations
  • 15. In collaboration with 15 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Questions?
  • 16. In collaboration with 16 The information contained in this document is proprietary. Copyright © 2014 Capgemini. All rights reserved. Contacts Sundip Naik sundip.naik@capgemini.com John McDonnell john.mcdonnell@sap.com Joe Vernon joe.vernon@capgemini.com Richard Kirker richard.kirker@sap.com www.sap.com/ewm
  • 17. The information contained in this presentation is proprietary. © 2014 Capgemini. All rights reserved. www.capgemini.com About Capgemini With almost 140,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2013 global revenues of EUR 10.1 billion (more than $13 billion USD). Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model. Rightshore® is a trademark belonging to Capgemini