Implementing multi site warehouse management
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Implementing multi-site warehouse management systems allows large corporations to standardize processes and systems across their supply chains. Two case studies describe how Graybar, an electrical distributor, and Owens Corning, a building materials manufacturer, successfully rolled out one warehouse management system to multiple sites. Both companies benefited from the configurability of the system, extensive training programs, and devoting sufficient resources to the initial implementation.
Implementing multi site warehouse management
- 1. ,PSOHPHQWLQJ 0XOWLVLWH :DUHKRXVH 0DQDJHPHQW % 67(9( %$1.(5 272%(5 $5 ,16,*+76 ( .(:25'6 WMS, Case Studies, Logistics, Distribution 6800$5 Increasingly, large corporations are standardizing on one Warehouse Management Sys- tem (WMS). A few manufacturers have assumed the lead in rolling these systems out across their supply chain. Case studies of two leading companies provide practical ad- vice for companies considering a similar path. $1$/6,6 In the last few years there has been a noticeable trend toward standardizing on one WMS package. Doing so makes a lot of sense. It helps in the discovery and enforcement of logistics and warehousing best practices, makes it easier to have standard Stock Keeping Unit names and get real-time inventory information, and provides for easier and less expensive maintenance. At Provia’s user conference, a number of companies had 3URGXFW 'HVFULSWLRQ not only done multi-site rollouts of WMS, but had taken 9LD:DUH :06 :DUHKRXVH 0DQDJHPHQW the lead in this process. In other words, they only mini- 9LD:DUH 706 7UDQVSRUWDWLRQ 0DQDJHPHQW mally used Provia implementation personnel or outside 9LD:DUH 636 6PDOO 3DUFHO 6KLSSLQJ consultants and system integrators. Two companies, Graybar, a wholesale distributor of electrical and com- 9LD:DUH 206 2UGHU 0DQDJHPHQW IRU 3/ munication data products, and Owens Corning, best 9LD:DUH 06 DUG 0DQDJHPHQW known for the Pink Panther brand of home insulation, 9LD9LHZ 6XSSO KDLQ 3URFHVV graciously agreed to share their experiences with ARC. 0DQDJHPHQW DQG ROODERUDWLRQ 3URYLD /RJLVWLFV ([HFXWLRQ 6XLWH In both cases, the configurability of the Provia solution, which is a key contributor to success in multi-site roll- outs, was a factor in the software selection. However, in both cases, it was far from the only criteria. The scalability of the hosted solution, strong interfaces to SAP, and few functional gaps were all factors in the selection of Provia by these two companies. *UDEDU Graybar has a full-time team on the implementation. This team has gotten eight sites up and running in about two years, and they are working on another 16 sites. In all in- @IU@SQSDT@Ã6I9ÃH6IVA68UVSDIBÃTUS6U@BD@TÃAPSÃDI9VTUS`Ã@Y@8VUDW@TÃ
- 2. 6S8ÃD†vtu‡†ÃQhtrÃ!à stances, the WMS is centrally hosted at Graybar headquarters. Central hosting can save time and money by requiring less hardware implementation work. For Graybar, how- ever, the choice of a central server linked to the regional DCs with broadband connections was driven by strategic considerations. Distribution is their business. This means logistics is a core differentiator, and the WMS has to stay up and running smoothly. Central hosting allows Graybar to have a core group of talented IT profes- sionals at only one location to guarantee system uptime. At this point, they view the implementation process as fairly simple. Most of the time required is not for configuring and integrating the Provia ViaWare package, but rather for physical activities and training. Physical activities include reslotting inventory, get- ting an accurate baseline inventory cycle count, and other such activities. Graybar reports that retrofits, sites where legacy WMS systems reside, require much more work than sites that are paper-based. Training is the other major time component. Graybar believes in extensive training, and allocates four to six weeks for the entire training process before going live at an individ- ual site. This allows for rotating personnel in and out of classes without disrupting existing operations. They spend a day to a week in class, depending upon whether they are line personnel or managers. Managers, not surprisingly, need *UDEDU +LJKOLJKWV more extensive training. The success of the training is reflected in • %LOOLRQ LQ VDOHV the results. It is not uncommon in WMS implementations for pro- • 2QH RI WKH ODUJHVW HPSORHH ductivity to fall for a couple months following an implementation RZQHG FRPSDQLHV LQ WKH 86 before reaching and surpassing the former level. At Graybar, there • VWRFNLQJ ORFDWLRQV LQ 1RUWK $PHULFD DQG 6LQJDSRUH were sites that surpassed former productivity levels and signifi- • 0DMRU GLVWULEXWRU RI *( OLJKWLQJ cantly reduced the number of temporary workings just two weeks 6TXDUH ' HOHFWULFDO DQG /XFHQW after going “live” with Provia. 7HFKQRORJLHV FRPPGDWD SURGXFWV Graybar views this as a very successful, ongoing project. At the sites • 'LVWULEXWHV DSSUR[LPDWHO RQH where the implementation has been completed, overall costs are PLOOLRQ GLIIHUHQW 6WRFN .HHSLQJ 8QLWV down, as well as costs per transaction. The actual numbers are con- sidered proprietary, and were not shared with ARC. Graybar has identified at least two other keys to their success. First, they point to the importance of devoting the necessary resources to the project, particularly in its first stages. Allowing enough time for the initial configuration of the first site was crucial. This configuration led to standard fulfillment processes across the enterprise, and these decisions were made very carefully. On an ongoing basis, testing interfaces must be thorough. Finally, to do it right, there must be upper management support. For exam- ple, if the go/no go tests were not successful, upper management had agreed to delay ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ
- 3. 6S8ÃD†vtu‡†ÃQhtrÃà the project until those problems were solved. It is a testament to the Graybar team that they passed all these tests, and the project never faced major delays. Nevertheless, the first site took six months. Subsequent sites roll out much faster, particularly if they do not involve a retrofit. The second key is team selection and team maintenance. A cross-functional team had both operational and IT experience. Implementations are the team’s full-time job, which made getting the team together somewhat more difficult. Because of the time frame, Graybar cannot guarantee what position team members will fill when they finish the project. It is clear, however, that team members will have enhanced their skills and use- fulness to the company. Team burnout is a problem. Management has talked about the team having less than a handful of people that they cannot afford to lose. These people must be handled very carefully. Once the first implementation was accomplished, this team broke into sub teams, allowing separate implementations to be tackled simultane- ously, speeding project completion, and reducing personnel losses from burnout. 2ZHQV RUQLQJ This company did seven Warehouse Management and Yard Management site imple- mentations last year and four this year. Except for the first site, these were done largely without the support of Provia’s implementation consultants. 2ZHQV RUQLQJ +LJKOLJKWV Owens Corning has a tougher set of implementations than Graybar • %LOOLRQ LQ VDOHV ZLWK because they have warehouses in different business units, which HPSORHHV have very different customer service and tracking requirements. • 0DQXIDFWXUHU RI EXLOGLQJ PDWHULDOV DQG FRPSRVLWHV Consequently, Owens Corning cannot use a cookie cutter approach • 1RUWK $PHULFDQ SODQWV IRU to the same degree as Graybar, but must prepare, in effect, separate LQVXODWLRQ EXVLQHVV configuration templates for related groups of warehouses. In this • 1RUWK $PHULFDQ SODQWV IRU case, the first DC using the new template takes much longer; the JODVV ILEHU UHLQIRUFHPHQW following DCs go much faster. Owens Corning stresses the need for • RPSOH[ QHWZRUN RI IDFWRU very thorough preparation, which includes extensive testing of in- ZDUHKRXVHV DQG VKDUHG 'V terfaces and detailed cut over planning. • 'V VXSSRUWLQJ GLIIHUHQW EXVLQHVV XQLWV RSHUDWH GLIIHUHQWO GXH WR GLIIHULQJ VHUYLFH DQG Owens Corning also believes their ongoing project has been very WUDFNLQJ UHTXLUHPHQWV successful. They offer the same general advice as the Graybar team, but with some differences in the details. Owens Corning stresses that the initial site to be picked for implementation is strategic. Their advice is to select a site where strong managers support the project. Make sure some of the people from that site are on the core implementation team. Owens Corning also believes that team selec- tion is critical. In their case, however, the team that selected the software supplier became the core of the implementation team. Finally, in contrast to Graybar, Owens ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ
- 4. 6S8ÃD†vtu‡†ÃQhtrÃ#à Corning believes that sites with legacy solutions have been more successful. In ramping up productivity, these legacy sites experienced less cultural change because they were already use to a system directing their activities. $'',7,21$/ 5(200(1'$7,216 200(176 • Avoid customization, using the standard package as much as possible. If someone wants to modify the standard, they need an extremely compelling reason. • Selecting and maintaining the team is critical. Having a team that can break into subteams will allow implementations to proceed in parallel and will experience less burnout. Insure that this team receives full, top-management support throughout their efforts. • In multi-site implementations, the times it takes for the first site is almost irrelevant. Take longer at the first site, get the configuration template right, and engage in very thorough testing. • Training is crucial to successful implementation. Balance speedy implementations with thorough training. The more thorough the training, the faster the site will im- prove warehouse productivity. For further information, contact your account manager or the author at sbanker@arcweb.com. Recommended circulation: All EAS clients. ‹Ã! ÇÃ6S8Ã6q‰v†‚…’ÃB…‚ˆƒÃ‡ÃÃ6yyvrqÃ9…v‰rÇÃ9rquh€ÃH6Ã!!%ÃVT6ÇÃ' # ÇÃ6S8rip‚€Ã VT6ÇÃVFÇÃBr…€h’ÇÃEhƒhÇÃDqvhÃ