VOICE DIRECTEDPARTNERING IN

DISTRIBUTION

EXCELLENCE

                                                                          

FIVE MOST IMPORTANT FIVE MOST IMPORTANT FACTORSFACTORS

Why HAL SystemsWhy HAL Systems

TechnologyTechnology

InterfacesInterfaces

Product functionalityProduct functionality

ROIROI

HAL SYSTEMSHAL SYSTEMS

In business since 1983In business since 1983

Dedicated to mid-size Dedicated to mid-size manufacturers and manufacturers and distributors.distributors.

Provide total Provide total software software solutionssolutions, including:, including:– Distribution SoftwareDistribution Software– CustomizationCustomization– TrainingTraining– ImplementationImplementation– Ongoing SupportOngoing Support

HAL SYSTEMS CLIENTSHAL SYSTEMS CLIENTS

Auto Parts Auto Parts DistributorsDistributorsMedical Lab Medical Lab SuppliesSuppliesJanitorial SuppliesJanitorial SuppliesApparel DistributorsApparel DistributorsAgricultural SuppliesAgricultural Supplies

Meat ProcessorsMeat ProcessorsPackaged Foods Packaged Foods ManufacturerManufacturerDairiesDairiesOil Refinery Oil Refinery DistributorDistributorVitamin DistributorVitamin Distributor

The most flexible platform….The most flexible platform….

Thoroughbred runs on over 100 Thoroughbred runs on over 100 hardware/operating system hardware/operating system combinationscombinations

There are over 300,000 installations There are over 300,000 installations in over 40 countriesin over 40 countries

Source code availableSource code available Data Base Independence (SQL, Data Base Independence (SQL,

Oracle, Thoroughbred)Oracle, Thoroughbred)

DISTRIBUTION-EXPRESS

Available as an Integrated Suite or as Individual Applications

SOLUTION-IV ACCOUNTING

WMS

SHIPPING SYSTEM

SOLUTION-IV ORDER PROCESSING & CREDIT CARD APPROVAL

DISTRIBUTION-EXPRESS

WMS HIGHLIGHTSWMS HIGHLIGHTS

Real-time inventory Real-time inventory availabilityavailability

20-35% reduction in 20-35% reduction in material handling effortmaterial handling effort

99.99% Inventory 99.99% Inventory accuracyaccuracy

Compliance LabelingCompliance Labeling

Maximize SpaceMaximize Space

SAMPLE REPORT -OPERATOR SAMPLE REPORT -OPERATOR PRODUCTIVITYPRODUCTIVITY

BARNETT PERFORMANCE PARTS

50,000 + SKU’s50,000 + SKU’sTransmissions to mufflers to Transmissions to mufflers to gasketsgaskets99.99% inventory accuracy99.99% inventory accuracy1 shipping error in 4 years 1 shipping error in 4 years versusversus multiple errors per multiple errors per day.day.Grew business 25% in 2.5 Grew business 25% in 2.5 years with 1/3 less peopleyears with 1/3 less peopleEliminated shrinkage - Eliminated shrinkage - internal and carrierinternal and carrier4 PM cutoff for 5 PM pickup4 PM cutoff for 5 PM pickupMaximized available spaceMaximized available spaceThree-minute orderThree-minute order

ANN’S HOUSE OF NUTS

1 - 21 - 2 Cases off on Cases off on inventory counts out of inventory counts out of thousands in stock!thousands in stock!90% less shipping 90% less shipping errorserrors60-70% less time for 60-70% less time for physical inventoryphysical inventoryNo indirect labor No indirect labor additions in three years additions in three years & business volume & business volume doubled!doubled!2 hour recalls2 hour recalls

UPSTATE FARMS

Ship 10 tractor trailer loads of product a dayShip 10 tractor trailer loads of product a dayInventory accuracy improved 15%Inventory accuracy improved 15%Month-end reconciliation takes 2 hours now vs. 2 days.Month-end reconciliation takes 2 hours now vs. 2 days.Physical Inventory is faster and “Anybody can do it”Physical Inventory is faster and “Anybody can do it”Transaction history shows proper product shipped when customers Transaction history shows proper product shipped when customers question expiration dates.question expiration dates.

WMS WMS OVERVIEW

FlexibilityFlexibility

FunctionalityFunctionality

RF EquipmentRF Equipment

PaybackPayback

ImplementationImplementation

SupportSupport

WMS FLEXIBILITYWMS FLEXIBILITYOriginally designed to be open softwareOriginally designed to be open software

Company-level parametersCompany-level parameters– Example: Level of pick verificationExample: Level of pick verification

Operator-level parametersOperator-level parameters– Example: Can do a complete contents moveExample: Can do a complete contents move– Example: Can ship incomplete orderExample: Can ship incomplete order

WMS FUNCTIONSWMS FUNCTIONS

ReceivingReceivingCross DockingCross DockingQuality ControlQuality ControlPutawayPutawayPickingPickingInventory Inventory ManagementManagementReplenishmentReplenishmentRFIDRFID

Event NotificationEvent NotificationStaging/ShippingStaging/ShippingCompliance LabelingCompliance LabelingTruck Route & Stop Truck Route & Stop ProcessingProcessingCycle Counts/Physical Cycle Counts/Physical InventoryInventoryLabor ReportingLabor Reporting

30 cases

ReceivingReceiving200 cases

StorageStorage

50 cases50 cases

ShipShipPickPick

TRADITIONAL MATERIAL FLOW

Purchase Order Sales

Order

Quantity Shipped

Loc: RDOCKLoc: RDOCK

Loc: L1Loc: L1

Loc: FL2Loc: FL2Loc:S1Loc:S1

RM 1 Lot A100 lb

ReceivingReceiving

StorageStorage

RM 1 Lot A90 lb

RM 1 Lot A10 lb

RM 1 Lot A10 lb

ProductionProduction

FG 1 Lot 12315 lb

ProductionProduction

StorageStorage

FG 1 Lot 12315 lb

FG 1 Lot 12315 lb

FG 1 Lot 12315 lb

ShipShip

PickPick

TRADITIONAL MATERIAL FLOW

Loc: RDOCKLoc: RDOCK

Loc: L1Loc: L1

Loc: PR1Loc: PR1

Loc: PR1Loc: PR1

Loc: L2Loc: L2Loc: P1Loc: P1

Loc:S1Loc:S1

Purchase Order

Production Order

Production Certification

Sales Order

Packing List/Manifest

PROVEN INTERFACE PROVEN INTERFACE METHODOLOGIESMETHODOLOGIES

Flat file Flat file

Automated attendantAutomated attendant

Common Data BaseCommon Data Base

Open Data Base ODBC Open Data Base ODBC CompliantCompliant

OPERATOR SIGN-INOPERATOR SIGN-INTailored screenTailored screen

Inherent Multi-LingualInherent Multi-Lingual

All transactions or All transactions or “moves” are date and “moves” are date and time stampedtime stamped– ResearchResearch– Corrective actionCorrective action– ReportingReporting

•Scan all incoming items at dock

•Catch any product labeling problems early in the cycle.

•Receive real time – data & inventory immediately available.

• Transmit back quantity actually received

•Cross Docking option

RECEIVING

QUALITY CONTROLQUALITY CONTROLCan identify items requiring QCCan identify items requiring QC

Can control who does QCCan control who does QC

Can restrict movement of QC items – Can restrict movement of QC items – Quarantine in place.Quarantine in place.

Objective – Quick turnaround from dock areaObjective – Quick turnaround from dock area

PUTAWAYPUTAWAY

Dedicated, random or Dedicated, random or hybridhybrid

Location selection: Location selection: WMS or OperatorWMS or Operator

Put confirmationPut confirmation

INVENTORY MANAGEMENTINVENTORY MANAGEMENT

Lot & serial # trackingLot & serial # tracking

Shelf life & expiration Shelf life & expiration date (FIFO & LIFO date (FIFO & LIFO control)control)

ID ‘special needs’ ID ‘special needs’ productsproducts

REPLENISHMENTREPLENISHMENTForward pick locationsForward pick locations

Floating forward pickFloating forward pick

Demand replenishmentDemand replenishment

Batch replenishmentBatch replenishment

PICKINGPICKING

Order or BatchOrder or Batch

RF PickingRF Picking

Voice DirectionVoice Direction

Pick ConfirmationPick Confirmation

•Prioritization of orders

•Paperless or with bar-coded label

•“Cluster picking” or multiple pickers

PICKING THE ORDER OPTIONS

•WMS directs the picker through warehouse.

•Scans to verify:•Location •Product (item, case, or pallet)

•Repeat

PICKING THE ORDER EXAMPLE

Simply Fashions – Pick ReportSimply Fashions – Pick ReportDATE: 10/31/2007

OPERATOR ORDER # TIME_1ST TIME_LAST SKUS/ITEM # NO_STORES  # UNITS MASTER  CTNS

CL2 28 6:21:20 16:18:24 28 189 1,213 32

CTM 47 6:32:35 15:53:02 48 1,347 9,094 117

DXH 45 8:14:03 16:04:48 43 2,282 9,883 103

EMF 57 6:13:51 16:28:44 54 2,067 13,696 191

LLF 56 6:14:22 16:19:12 54 2,142 14,177 176

MDM 43 6:57:39 16:19:12 42 1,945 8,188 81

RP2 34 8:13:45 16:16:36 32 1,179 5,848 62

RP3 41 8:42:01 16:19:12 46 2,719 13,285 136

RP4 41 6:17:20 15:02:44 42 1,444 7,248 102

82,632

Note: operator RP3 who had 2719 picks completed in approximately 7.5 hours or 362 picks per hour or 6 per minute

WMS SOFTWARE DEMOWMS SOFTWARE DEMO

What is Voice DirectedWhat is Voice Directed

Uses voice Uses voice commandscommands– What commandsWhat commands– Who’s voiceWho’s voice

Direction Direction – To it’s locationTo it’s location– To the itemTo the item

ConfirmationConfirmation– Confirm the itemConfirm the item– Confirm the new locationConfirm the new location

ARE YOU LISTENING?ARE YOU LISTENING?

Here is Here is whywhy you should be listening to you should be listening to VOICE DIRECTED WMS:VOICE DIRECTED WMS:

– Proven technologyProven technology– Boost productivityBoost productivity– Increase accuracyIncrease accuracy– Improve safetyImprove safety– Quick to trainQuick to train– Easy to learnEasy to learn

Important criteria for Important criteria for selectingselecting ……VOICE DIRECTED ……VOICE DIRECTED

The Technology involvedThe Technology involved

ImplementationImplementation

Product functionalityProduct functionality

TECHNOLOGYTECHNOLOGY

Head SetHead Set– Bluetooth technologyBluetooth technology

Ring ScannerRing Scanner– Laser Laser

Wireless ComputerWireless Computer– CE deviceCE device– Wi-Fi TechnologyWi-Fi Technology– Terminal emulation Terminal emulation

softwaresoftware– Real time to the WMSReal time to the WMS– Real time to the HostReal time to the Host

TechnologyTechnologyOperator wears:Operator wears:– HeadsetHeadset

– Mobile Mobile wireless wireless computercomputer attached to attached to their belttheir belt

– SoftwareSoftware converts converts picking instructions picking instructions contained within the contained within the WMS to VoiceWMS to Voice CommandsCommands

– Ring ScannerRing Scanner for for confirmationconfirmation

Technology:Technology:The Head SetThe Head Set

Allows the Allows the operator to hear operator to hear the WMS the WMS commandscommands

Uses wireless Uses wireless Bluetooth Bluetooth technology technology

Technology:Technology:The Ring ScannerThe Ring Scanner

Scans a barcode:Scans a barcode:

– Which Which confirmsconfirms that the that the itemitem or the or the locationlocation is is correctcorrect

– That the voice That the voice command was command was accuratelyaccurately understood understood

Use both hands for:Use both hands for:

For pickingFor picking For carryingFor carrying

– Not juggling scannersNot juggling scanners– Not punching buttonsNot punching buttons– No papers and pencilsNo papers and pencils

Hands FreeHands Free

SafetySafety

While moving around the facility:While moving around the facility: Eyes are focused on warehouse Eyes are focused on warehouse

environment.environment.While driving a forkliftWhile driving a forkliftWhile walking While walking

Not distracted by equipmentNot distracted by equipmentNot distracted by paper/pencilsNot distracted by paper/pencils

TechnologyTechnology

Hold up well in Hold up well in – Adverse conditions Adverse conditions

such as such as refrigerated refrigerated environmentsenvironments

Socket Socket CRS 9PCRS 9P. . Performance Performance ...... Storage Storage TemperatureTemperature. -40 . -40 to 158° F (-40 to to 158° F (-40 to 70° C.) 70° C.)

Voice is also Compatible: Voice is also Compatible:

With Handheld laser With Handheld laser scannersscanners

With RFID technologyWith RFID technology

TRUCK PROCESSING

WMS does route manifesting & route WMS does route manifesting & route planningplanning– All calculations are done before picking All calculations are done before picking

orderorder– Weight and cubing calculatedWeight and cubing calculated

EliminatesEliminates need for staging orders need for staging orders

CYCLE COUNTSCYCLE COUNTSHost system or WMS Host system or WMS generatedgenerated

Based on:Based on:– Location rangesLocation ranges– Select itemsSelect items– Pre-defined cyclesPre-defined cycles– Ad hoc cyclesAd hoc cycles

Real Time UpdateReal Time Update

RFIDRFIDSame WMS SoftwareSame WMS Software

Required HardwareRequired Hardware– TranspondersTransponders– Scanners with RFID Scanners with RFID

readersreaders– AntennasAntennas

Dual ScannersDual Scanners

RFID CHALLENGESRFID CHALLENGES

Transponder costTransponder costJust established Generation 2 Just established Generation 2 standard protocol. standard protocol. Physical challenges: metal Physical challenges: metal containers, acidic liquids, and containers, acidic liquids, and mixed pallets.mixed pallets.Accuracy level at high-speed Accuracy level at high-speed product movement.product movement.Ability to focus the RFID Ability to focus the RFID reader for only the desired tag reader for only the desired tag reads.reads.

WMS REPORTINGWMS REPORTING

Over 20 Standard ReportsOver 20 Standard Reports

Operator productivityOperator productivity

Open Data Base Open Data Base – ExcelExcel– Crystal ReportsCrystal Reports– Other Desktop toolsOther Desktop tools

EVENT NOTIFICATIONEVENT NOTIFICATION

Automatic TriggersAutomatic Triggers– Damaged ProductDamaged Product– Special OrderSpecial Order– Critical Inventory LevelCritical Inventory Level– Order shippedOrder shipped

Instant Instant communicationcommunication

RF EQUIPMENTRF EQUIPMENTReal timeReal time updates updates

We ensure 100% site We ensure 100% site coveragecoverage

We help you select the right We help you select the right devicesdevices

WMS is scanner & printer WMS is scanner & printer independentindependent

Experienced with Symbol, Experienced with Symbol, LXE, HHP, Intermec, Zebra, LXE, HHP, Intermec, Zebra, and Datamaxand Datamax

The EdgeThe EdgeThe The WOWWOW Factor: Factor: – this can give a company this can give a company the the

edgeedge when potential clients when potential clients are deciding which provider to are deciding which provider to selectselect

Current TechnologiesCurrent TechnologiesAccuracyAccuracyAccountabilityAccountabilityReliabilityReliability

HAL ROI MODELHAL ROI MODELProjected BenefitsProjected Benefits

Estimated CostsEstimated Costs

We complete the model with youWe complete the model with you

TIME SAVINGS SALARY COSTS CALCULATED

# D W M Y $/HR % BENEFITS/

Data is for total of all shifts. HOURS Freq. Hrly Rate Benefits SAVINGS

A. DATA ENTRY - Enter total hours, frequency, hourly rate, and % of benefits for each category:

1 Receiving 0 D -$ 20% -$

2 Inventory Movement 0 D -$ 20% -$

3 Production Orders 0 D -$ 20% -$

4 Shipping/Invoicing 0 D -$ 20% -$

5 Physical Inventory 0 Y -$ 20% -$

TOTAL PAYROLL SAVINGS IN DATA ENTRY -$

FAST PAYBACKFAST PAYBACKTypical payback period is Typical payback period is 10-14 months.10-14 months.

It is not uncommon to see It is not uncommon to see ROI in less than 1 year.ROI in less than 1 year.

Chem Nut CFO, Keith Chem Nut CFO, Keith Thomas: Thomas:

““The Tracker warehouse The Tracker warehouse management system has management system has paid for itself in the first 6 paid for itself in the first 6 months by reducing months by reducing inventory shrinkage alone.”inventory shrinkage alone.”

RAPID IMPLEMENTATIONRAPID IMPLEMENTATION Finalization of designFinalization of design

Planning sessionPlanning session

Order RF EquipmentOrder RF Equipment

Software installationSoftware installation

IT TrainingIT Training

Hardware InstallationHardware Installation

TestingTesting

User TrainingUser Training

ImplementationImplementation

As fast as 3-4 Months

TRAININGTRAINING

On SiteOn Site

““Train the trainer option”Train the trainer option”

Initially in group, then 1-Initially in group, then 1-on-1 mentoringon-1 mentoring

““15 minutes-to-picking15 minutes-to-picking””

SUPPORTSUPPORT

24-hours, 7 days-a-24-hours, 7 days-a-week.week.

Major annual updateMajor annual update

EnhancementsEnhancements

PICTURE YOUR WAREHOUSE WITHPICTURE YOUR WAREHOUSE WITH

Real Time Inventory Real Time Inventory UpdatesUpdates

No unproductive travel No unproductive travel timetime

99.99% Inventory 99.99% Inventory accuracyaccuracy

Filling more orders with Filling more orders with less peopleless people

No shipping errorsNo shipping errors

Maximizing spaceMaximizing space

QUESTIONS?QUESTIONS?

NEXT STEPSNEXT STEPS

ROI for project ROI for project approvalapproval-or- -or-

Personal DemoPersonal Demo-or--or-

On-site Client VisitOn-site Client Visit