itt document

Game Stores Group Ltd Invitation to Tender

INVITATION TO TENDER

Prepared by:Game Stores Group Ltd

Link House, Ellesfield Avenue, Bracknell, Berkshire, Reading RG12 8TB

Prepared by AO’C, SO’C, AW and TL of 38


Contents

Description Page

1. Introduction 3-9

2. Existing Equipment 9

3. Current Management & Staffing Structure 10

4. IT Overview 11-12

5. Current WMS/JDA 4R0/4R5 13-15

6. Outline Description of the new DC facility 15-17

7. Autosortation & Transport Conveyor Testing Regime 18-19

8. Design, Installation & Commissioning Process 20-22

AppendixProcess Map – Now and proposed 24-26

Outline User Functionality Specification 27-33

Build Program 34-35

EnclosuresCurrent Processes & ProceduresVideoPlans - Existing Layout

Concept Layout for New DC Specific Sectional Elevations for New DCDisk - Data Analysis



1. Introduction

Corporate Statement

The Game Stores Group Ltd is Europe’s leading specialist retailer of computer software and video games. We operate from over 400 stores in the UK, Eire, Sweden, Spain and France. We also offer on- line shopping services and on-line gaming.

Our History

In 1992, the Group traded as Rhino Group Plc. It operated a trading subsidiary called Future Zone Stores Ltd, who specialised in the retailing of computer software and video games. In the first quarter of 1995, Electronics Boutique Inc. (US company) acquired approximately 25% of the company (which it later sold) and helped formulate a strategy to model the company after its successful US namesake.

Throughout 1995 the Future Zone stores were rebranded to Electronics Boutique and the Rhino Group Plc was renamed to Electronics Boutique Plc.

In May 1999, we acquired our largest competitor, GAME, and integrated their stores into our infrastructure, and subsequently, we have seen our business continue to grow throughout the UK and Eire, as well as now having stores in three other European countries, being Spain, France and Sweden.

On January 8th, 2002, the Group announces its intention to adopt a single brand strategy in the UK and Eire, to solely focus on the GAME brand and to rename the Group to THE GAME STORES GROUP LTD.

Our Business

As a Group, we have always maintained that our high street stores are the fundamental strength of our business. We now have over 400 stores in the UK, Eire, Sweden, Spain and France, building up leading market share in each territory.



Our core brand in the UK and Eire is GAME, and although we currently also trade under the Electronics Boutique brand, we do expect the vast majority of outlets in the UK and Eire to operate as GAME by the end of 2002. All our stores will continue to trade with the same customer orientated approach and provide excellent customer service. The Company’s ultimate objective is to be the shopping destination of choice for all video games, PC Software, consoles and peripherals.

Throughout 2002 and beyond, we will continue to grow organically and build on our existing presence by developing a leading market share position in each country that we operate in.

1.1 Background

Game Stores Group Ltd has naturally arrived at a point where we have outgrown our present Distribution Centre and Head Office environment. We have taken the opportunity to acquire land and design a new Head Office and Distribution facility. We are moving to a brown field design and build development of Head Office and Distribution facility in 2004. It is currently envisaged that the Distribution facility will have finished construction by January 2004. Our target dated for being fully operational at this new site is June 2004.

With this move comes the opportunity to look at our Distribution facility and take advantage of the immense improvements that technology can give us; specifically improvements in efficiencies and greater cost management.

The ITT document and pack contents will give you a fair insight into our requirements, and is accompanied by current process maps, a concept plan of the proposed facility and its MHE content. In addition, we have included sample data. We are therefore inviting you to tender for the full or part supply of the MHE (including relevant technology) for the proposed facility. We ask that you take into consideration our concept plan but to use your experience in offering alternative solutions. It should be noted that the build plans have been agreed and finalized.



1.2 Tender Process

Table 1 – Tender Process Timetable

From ToInvitation to Tender Issued 20th December 2002

ITT Briefing Meeting 16th January 2003

Tender Period 20th December 2002 7th February 2003

Tender return to Game 7th February 2003

Initial Tender Evaluation 10th February 2003 14th February 2003

Interviewing Suppliers 19th February 2003 21st February 2003

Final Evaluation 24th February 2003 26th February 2003

Site Visit * 04th January 2003 18th February 2003

Final Selections & Notification 3rd March 2003

*To one location chosen by the supplier as being most appropriate to the ITT and closest to their proposal. To be attended by Steve O’Connell, Alan Wilson, Anthony Lewin, Adam Myer and Stuart Parsons.

1.3 Confidential

All information provided to potential suppliers/contractors in support of the tender process is to be regarded as confidential to Game Stores Group Ltd and cannot, without the prior written consent and approval of Game Stores Group Ltd be disclosed to any third party. It should be further noted that no communication should be made with any one regarding the nature of this document other than those named below in 1.4. Enclosed you will find a letter of confidentiality which should be signed and returned regardless of your intention to bid.

Suppliers/contractors are requested to positively register their intention to bid in writing to Steve O’Connell by the 8th January 2003, with reference to which area they intend to submit a proposal, for the Game Stores Group Ltd work. Suppliers/contractors who do not wish to submit a proposal are requested to return the ITT document, together with all enclosures to Steve O`Connell at Game Stores Group Ltd, Bracknell by the same date.

1.4 Communication



All communications and correspondence concerning the tendering process should only be made through:

Steve O’Connell, Director of Distribution, Game Stores Group LtdTel: 01344 464198OrAnthony Lewin, Logistics Manager, Game Stores Group LtdTel: 01344 464186OrAlan Wilson of Alan Wilson AssociatesTel: 07973 383725

Game Stores Group Ltd will be available to meet reasonable requests for information. Any information requested, which is not confidential to a suppliers proposal will be provided to all other potential respondents.

1.5 Acceptance

The preparation of this document implies no statement of intent by Game Stores Group Ltd to accept the lowest or any of the proposals provided. The information contained in this document is intended to give a reasonable indication of requirements. Game Stores Group Ltd will not be held liable for any claims arising from misinterpretation.

1.6 Submissions

Three copies of your proposals are to be returned to Game Stores Group Ltd at the address below under confidential cover by 12:00 noon on 7th February 2003.

Mr. S. O’ConnellGame Stores Group LtdLink HouseEllesfield AvenueBracknellBerkshire RG12 8TB

1.7 Scope of Supply

Proposals are to be based upon the throughput, storage volumes and operating methods, together with the concept layout plans as specified in this ITT. The scope of the proposal should include the MHE highlighted on the concept layout plans as detailed in sections 6, 7 & 8 of this document. In addition, proposals are requested for the WMS



taking into consideration sections 4 & 5 of this document. Our WMS support requirements are detailed below:

WMS Support Requirements & Specific Functionality Key Elements

1.7.1 It is believed that the very high level of automation embodied in the new DC MHE systems concept will call for substantially higher functionality than can be provided by the current JDA Merchandise Management Systems 4R0 (even when upgraded to 4R5).

1.7.2 Respondents to the ITT are invited to offer the full WMS software necessary to drive all the physical distribution tasks within the new DC plus achieve full and satisfactory interface with the JDA system.

1.7.3 Your proposal for a WMS is deemed to be essential. A proposal detailing that system with its overall cost, specification and ongoing requirement regarding support will be required.

1.7.4 It is important that the ITT tenderer clearly state which of any parts of their proposed WMS package is in house or will be sub-contracted from an independent software supply organisation. NOTE: Inability to provide an all in-house WMS package within the ITT response will not necessarily disadvantage the tenderer but in this case they will be expected to make clear recommendation of which 3rd party associate they would prefer to work alongside.

1.7.5 Proven WMS interface with the tender’s MHE must be demonstrated with appropriate site visits to end users.

1.7.6 The tenderer must take all steps to familiarize themselves with the current JDA systems in use at the current Game DC. Contacts for this process are:

Antony Harris, IT Director, Game Stores Group LtdTel: 01344 464000 or 464037

Steve Donlon, Head of Development, Game Stores Group LtdTel: 01344 464418

1.7.7 An outline description of the JDA system is already within this document as is the AS400 hardware configuration. Further detail on the conceptual view of how the WMS and automated systems should operate can be found in the User Functionality Specification.



1.7.8 The key aspects of the WMS functionality which the tenderer should focus on must include the following.

1.7.9 Complete control of every unit of stock as it moves into, through and out of the Game DC. This level of control must include the selection of storage medium which may be pallet mode, tote mode or shelf mode.

1.7.10 In order to achieve the above functionality, the WMS will need to access and retain for analysis sufficient data by SKU on all movements into the system and out of the system.

1.7.11 Full batch picking functionality has to be provided including wave allocation and store chute volume balancing.

1.7.12 Perpetual inventory control is required, particularly in the case of the miniload stock holdings. The WMS should analyse movement activity by SKU to set the intervals of inventory checking required.

1.7.13 It is essential that the WMS either provide or interface with the autosortation /miniload /conveyor system’s plc software to provide a full monitoring facility of the tasks being carried out within the new Game DC. This process is to form the basis of priority and parameters setting by the system control staff to ensure maximum operational efficiency and the avoidance, wherever possible, of bottlenecks and imbalance in different sectors of the installation.

1.7.14 It will be advantageous if the selected WMS has full proven interface capability with the host JDA MMS or later versions and the AS400 hardware configuration.

1.7.15 Because the level of automation is to be so high in the new GAME DC, resilience of the software and hardware will be critically important. All necessary software and hardware provision must be configured to provide 99.9% of system availability.

1.7.16 Any combination of 2 or more suppliers of the WMS and MHE elements of the proposed autosortation/conveyor plus miniload system will require a back to back guarantee between all the parties to ensure that no “black holes” will emerge during procurement, installation and successful commissioning of the whole system.

1.8 Evaluation



The evaluation of the ITT responses will be based upon the following criteria listed in no particular order:

1.8.1 Design & Supply Section

Site Visit Other MHE supplier interface Data simulation Previous software integration with JDA MMS WMS capability Training and system integration programme Reliability

1.8.2 Commercial Section

Performance warranty Maintenance options Ability to meet project plan Design being fit for purpose Meeting throughput needs Understanding systems issues Cost of supply and installation Additional resource required to maintain software application

1.8.3 Elemental breakdown of supply/installation costs –

Transport conveyors Auto sortation system Redeployment of existing equipment

1.9 Corporate Financial Evaluation

Suppliers are requested to provide Game Stores Group Ltd with copies of their audited accounts for the last 3 financial years. It is requested that suppliers provide this information by 9th January 2003.

2. Existing Equipment

2.1 Equipment

The following equipment will be re-used by Game Stores Group Ltd: Put to Light system complete with its existing powered roller

conveyor system



Where feasible and cost effective the following equipment should be re-used:

Siemens Dematic powered intelligent conveyor system



3. Current Management & Staffing Structure


Logistics Manager

Goods In Supervisor

Early ShiftSupervisor

Web TempSupervisor

InventorySupervisor

Inventory Manager

Distribution Director

RestockSupervisor

RestockSupervisor

ReturnsSupervisor

New Release

Supervisor

StoreSupplies

Supervisor

EuroTech

2 5 stock control

3 8 26 8 9 3 2 Lynx Traffic

operatives

1

Operations Manager

Restock Manager

Returns

Senior Supervisor

New Release Senior

Supervisor

Store SuppliesSenior

Supervisor

DC Facility

Manager

Lynx

Traffic Manager

Blue Arrow

Temp Staff

PA and

Distribution Coordinator

GoodsReceived

Senior Supervisor

Web

Senior Supervisor


4. IT Overview



4.1 The AS/400 should be considered the core system in use within the company. The AS/400 runs the two primary management tools with the company: JDA and Lawson. The AS/400 is currently running version 5.1 of the O/S and is partitioned into 4 logical machines (LPARs). It has a total of 1.5Tb storage and 4 processors.

4.2 The primary networking protocol is TCP/IP. The network backbone is provided on a pair of 3COM Corebuilder 3500’s linked over fibre to a number of 3COM 3300’s, providing Cat5 to all parts of the offices and DC. The 3COM 3300’s provide the connection to a variety of hubs. The network is currently being segregated into VLAN’s so that we can improve the performance of the network.

4.3 A Checkpoint Firewall provides protection for the 2Mb leased line connection to the Internet. European Offices and DC’s are connected via Checkpoint Firewalls to the Internet and we have VPN connections between the sites. We are able to provide bandwidth control to meet system requirements through the use of Floodgate (also from Checkpoint).

4.4 We provide access for remote users in a number of ways, depending on their requirements and the facilities offered in the area from which they are connecting. Where broadband is available, we use a VPN connection to the firewall which provides access to the required Head Office Systems. Users who are unable to use broadband, or who are connected from a number of different locations are able to dial into the office network through a 3Com TCH (Total Control Hub). Occasionally, users from foreign countries who require access can connect to the internet through a local ISP and then use a VPN connection to the office network. The UK stores are connected to Head Office through a WAN provided over ISDN. At the store an ISDN router is used (such as a 3Com 3c501 or a Cisco 800 series router) and these connect to either the TCH or to CISCO ISDN routers at head office. We provide internal DNS and DHCP where required.

4.5 The Web systems are hosted at Harbour View Docklands. A number of feeds exist to provide data to the web servers and we receive orders and loyalty information back from the servers.

4.6 Once a day, stock prices and descriptions are sent from the Head Office systems to the Web servers, whilst stock levels for the warehouses and the stores are sent several times a day. Orders are sent from the web service back to the Head Office systems as and when they are received. Once credit card authorisation has been received, transfers are injected into the JDA DC system to request picking and packing of the goods.



4.7 When the goods are scanned out for delivery to the customer, the customer is charged for the items purchased. A separate warehouse number is used to segregate Web stock from the balance of the DC stock.

4.8 The stores run tills based on the Windows NT4 operating system. The tills are polled using RemoteWare software over the WAN ISDN network. The tills run Anker PowerTill and PowerStore software. The store computers are not provided with direct access to the central systems. Instead data is polled back from the stores and applied in batch to the AS/400. Likewise, data destined for the stores is prepared by the AS/400 in a transferable format and downloaded to the tills overnight.

4.9 We run a variety of other systems at Head Office. These are predominantly run on Windows Servers, such as Exchange for e-mail, SQL for the Loyalty database and various other databases, Progress for the Payroll system and Oracle for the property database. On the desktop we use Office 2000 for Word Processing, Excel, Access and Powerpoint.

4.10 The Loyalty system runs on a Microsoft SQL server and stores customer and transaction information used by loyalty card holders. It enables us to contact the loyalty card user, provide them with vouchers and to analyse the sales history in a number of different ways.

4.11 Data is fed to the system in batch mode after being downloaded from the stores systems and pre-processed. Data is also fed from the web sites.

5. Current WMS/JDA 4R0/4R55.1 JDA’s Merchandise Management System (JDA)



5.1.1 GAME’s core application is JDA’s Merchandise Management System (JDA). JDA provides all merchandising and distribution functionality with interfaces to EPOS systems; the Lawson Accounts package; Lynx carrier software; and an in-house inventory tracking system (TIMS). Note: JDA will be upgraded to v4R5 prior to implementation of a WMS. This version is currently used in GAME’s European businesses (using the AS400 in Bracknell, and the v4R5 functionality/database is available for viewing.)

5.2 Transfer Integrated Management System (TIMS)

5.2.1 TIMS was designed to track all cartons in and out of the distribution center.

Tracking is available by: Store Deliveries Returns from Stores Returns to Vendors (still being developed) Web/Mail Order shipped via Lynx

5.2.2 TIMS is integrated (via the Unix box) with the following systems to enable tracking:

Lynx’s application situated in the DC Lynx’s mainframe (current POD info including images for

POD signatures ) City Air Express mainframe (current POD info no images) Order Active Database (for Web/Mail Orders) AS400 for Transfer Info and Carton Control Info (used for Put

Pick – Cycle No) Transfer information from Tills (Returns and Discrepancies –

fed via Zebra )

There is also an automated claim facility which integrates with Crystal Reports, Word and Outlook to automatically send the emails to Lynx.

5.3 Lawson

5.3.1 Lawson is a fully integrated system covering Financials, Procurement, HR and Payroll functions. GAME currently uses the Financial options and part of the Procurement option. These form the basis of GAME’s financial reporting.

5.3.2 The programs used in Financials are General Ledger, Accounts Payable, Cash Ledger, Asset Management and Report Writer. In the near future we will be using Accounts Receivable and Billing. We use Invoice Matching from the procurement option. Lawson is interfaced with JDA enabling the import of receivers from JDA to Lawson to allow automatic invoice matching.



5.4 Technical Requirements

5.4.1 There is a preference for the WMS to have previously been interfaced with JDA MMS

5.4.2 The interface must be flexible to deal with further development of GAME’s back office systems.

5.4.3 Flexibility should be provided via softcoding e.g. parameters, and should be modular to avoid changing either the base JDA package or the base WMS software.

5.4.4 A list of outstanding issues with the WMS software should be available for review.

5.4.5 A data model of the WMS should be available for review.

5.4.6 JDA is a perpetual inventory tracking system, with every inventory activity being recorded as an auditable transaction. The WMS should be capable of supporting this.

5.4.7 Secure user access by user sign-on and password protected.

5.4.8 Help desk support available during DC working hours.

5.4.9 Post implementation support for WMS June 2004 onwards.

The following diagram shows how the merchandising module interfaces with the distribution module.



6. Outline Description of the New DC Facility6.1 The proposed warehouse building will have a clear headroom of 14

meters and a base area of 88.5 meters x 108 meters.

6.2 The main bulk storage areas will have a combination of high bay narrow aisle pallet racking and a tote handling 3 crane miniload system.

6.3 These two back up stock systems will interface with a large multi level free standing structural mezzanine floor of approximate size 80 metres x 50 metres by way of a link floor of approximate size 35 metres x 10 metres all of which are 7 metres above ground floor level.

6.4 Beneath this large mezzanine is another smaller one of approximate size 80 metres x 20 metres but this is only 3.5 metres high and it will provide space for the re-siting of the current put to light batch picking system which will act as a standby system for either new automated system down time or to provide peak throughput additional capacity. (The re-deployment of this system should be treated as a quite separate submission to the main IIT response).



6.5 The main 7 metre high mezzanine has been designed to accept the addition of a future level at 11 metres above ground floor so that the full storage void offered by the 14 metre high building can be utilised. The column grid for this future extension has been planned to be 5 metres x 5 metres whereas the lower column centres are on a larger 10 metre x 5 metre grid. All solutions offered in response to this ITT must respect this future mezzanine level in terms of practicality of subsequent installation without disruption to current systems nor risk physical damage to these during the re-engineering process.

6.6 Details of the layout are shown in the drawing number AWA/EB/G/4 This drawing shows 4 separate layouts which focus on the following attributes:

Layout AThis details the structural elements of the 7 metre high mezzanine floor, the pallet racking and mini load racking system

Layout BThis details the mezzanine column and rack leg loads that have been allowed for in planning the huge ground floor slab and foundation loads.

Layout CThis details the concept design for the auto-sortation order picking system which is colour coded to reflect the 4 main sections which the ITT response should clearly separate in terms of technical description and cost (purchase and maintenance if possible).

Green - is the miniload system of 3 cranes single or twin handling plus racking for approximately 36000 totes of nominal size 600 x 400 x 220mm, with 25kg maximum gross load weight.

Orange - for all tote and cardboard (separate lines) transport conveyors to and from the miniload/P & D stations to the decant / auto-sortation infeed stations and post chute dispatch tote transport conveyors.

Yellow - for the auto-sortation system itself, this should be able to handle cartons of games as well as individual unit packs without damage to the product.

Pink - The existing put to light system which is panned to be re-used from existing equipment in the Bracknell warehouse.



Layout DThis shows only the current put to light system which is coloured purple.

6.7 The three spiral mini wheel or chutes shown in the layout descend from the 7 metre level to ground and run out as 3 x 20 metre gravity spurs which provide the buffer for a manual outsort of totes into delivery zones for the nominated carrier.

6.8 It will be obvious from the above brief description that Goods-In is in front of the pallet racking zone and dispatch is in front of the 3 spiral conveyors. Some overlap of the central doors is anticipated.

6.9 The offices / services block shown on the right of the layout drawings contain the main warehouse related staff and their toilets / locker room facilities. A separate Head Office block is the other side of the short link building shown at the extreme right hand side of the plan.

6.10 The concept of the Miniload and Narrow Aisle pallet racking layout as indicated is shown for the ITT respondent to understand the flow of product into the warehouse in bulk mode which then will need to be transferred to the auto-sortation system for store replenishment on a daily basis. Residual stock from vendor packs will return to the Mini-load in tote mode.

The product movement data must be analysed to determine the mix of pallet, case and or tote movements by SKU for both peak and trough days of business activity.

6.11 The waste from detrashed vendor cases is also proposed to be transported by under-slung belt conveyor from below the decant stations to a compactor as indicated in the layout drawing and elevations details.

6.12 These conveyor elevation details are identified by reference to a separate layout drawing highlighted as appropriate in blue.

6.13 Please bear in mind that the layout plans provided will be subject to some modification to suit –

Local building regulations/fire officer requirements Fire engineering strategy M & E equipment interface



7. Autosortation & Transport Conveyor Testing Regime

General overview of the scope and constituent parts of the proposed warranty elements.

7.1 System Attributes

7.1.1 The purpose of the auto sortation conveyor system is to provide an effective way to pick store orders as detailed in this ITT.

7.1.2 The system is expected to operate for approximately 24 hours per day, 6 days per week, however the design of the system should allow for continuous operation of the system should this be necessary for operational reasons (allowing for essential maintenance).

7.1.3 It is appropriate for the selected supplier to be involved with the final detail design and this process should not compromise the timings as stipulated in the project plan.

There are 3 phases to the project installation:

7.2 Stage 1– Installation Warranties

These will consist of the following measurable aspects

7.2.1 Adherence to the agreed time schedule (attached to this agreement appendix 1)

7.2.2 Standard of workmanship

7.2.3 CDM compliance via the overall site build programme

7.2.4 Building company/contractor project execution interface

7.2.5 Other MHE equipment supplier installation interface

7.3 Stage 2–System Testing Period Warranties

7.3.1 These will involve a sequence of tests to be carried out initially by the supplier.



7.3.2 Subsequent tests will be undertaken by the client and their technical advisors to determine the robustness of all system interfaces. The completeness and effectiveness of these interfaces and all electro-mechanical items will be the responsibility of the supplier and the clients own IT specialists

7.3.3 The testing regime will extend over many weeks as defined in the Project Plan and all MHE contractors will have to have completed all electro-mechanical installations in time for their own and other work related equipment to carry out their respective testing as per the agreed schedule.

7.3.4 The tests as defined by the supplier will also be supplemented by an independent testing by the client and their technical advisors under the following:

Soak Tests at segment levelNode Tests at all junctions

These additional tests will be at the expense of the client, and any impact on the project plan will be agreed before commencement of the tests.

7.3.5 This review will need to conclusively prove that the critical response times are appropriate for the throughput values as extrapolated and simulated from the product volumetric data provided.

7.3.6 It is important to note that the auto sortation conveyor systems supplier should detail all future upgrade possibilities both as regards increased mechanical performance e.g. speed of conveyor motors/gearing and increased levels of response time in their control devices e.g. frequency driver, control settings and software parameters.

7.4 Stage 3 Post Handover Tests

7.4.1 These will be completed no sooner than 1 month from system handover to the client, and no more than 3 months from handover.

7.4.2 Whilst 100% system testing can be simulated by artificial release of customer orders onto the system as a controlled experiment, no form of durability test under full 100% throughput volumes can be satisfactorily demonstrated within the first few weeks. Therefore, the obligations incumbent upon the equipment supplier must extend to cover such time lapse as to enable this to be practically achieved.



8. Design, Installation & Commissioning Process8.1 Section A – Interface with non ITT MHE kit

8.1.1 The proposed warehouse building will have clear headroom of 14 metres and a base area of 88.5 metres x 108 metres. All conveyors descending or ascending above 2 metres above flow that have mezzanine levels above must be suspended from those structures.

8.1.2 It is to be stated which of the conveyor elements to be supplied will have been produced by the supplier’s own manufacturing facility and if this is not the case then the sub supplier will be identified. The manufacturing quality and engineering tolerances will need to be specified.

8.1.3 The auto sortation system and conveyors will need to successfully interface with other MHE equipment, principally, with the structural mezzanine floor. All such interfaces must have been fully coordinated between the conveyor supplier and other relevant suppliers prior to the commencement of construction. At no time will the supplier be able to claim that information was denied to them in this regard. Particular areas for special attention include:

a) Conveyor apertures in the mezzanine floors with respect to position size and clearance above conveyors at all points where structural beams could foul the cartons or totes.

b) Mezzanine columns, base plates and fixings with respect to position where conveyors and other ancillary equipment are to be positioned.

8.1.4 Acceptance of the specification of both types of plastic totes has to be included as part of the suppliers quotation. The requirement for these totes is driven by:

a) The client’s miniload back up stock holding profile.b) The gravity flow tracks of slow moving manually picked racking.c) The conveyors and associated hardware.d) The tote must meet all manual handling best practice criteriae) The tote used for delivery to store and return to DC must be sized

to minimize this part of the supply chain cost.

Note – The internal stock tote and the store despatch totes will not be the same. Additionally, the supplier will be held responsible for the quality and durability of the bar code labels applied to the totes.



8.2 Section B – System Commissioning Performance

8.2.1 The supplier will be required to carry out a range of equipment performance tests (in addition to their own customary thorough test requirements) to enable the client to accurately judge whether or not the declared standards have been satisfactorily met. These tests will primarily involve the electro-mechanical operations of all conveyor elements but will also include tests on the interface performance of other sub contracted sensing/weighing/labeling equipment.

Note – should some of this testing be carried out in production facilities, the client reserves the right to attend key tests.

8.2.2 The supplier will define the increases to the throughputs of various sections of their conveyor system that could be achieved by either:

a) Speeding up conveyors by upgrading motors and/or gear ratios.b) Modifying control response times within their scope of supply.c) Identifying where improvements to response times with the WMS

interface could enable higher throughputs to be achieved.

8.2.3 The anticipated operating hours for the Project Blue warehouse should be assumed to be 24 hours per day, 6 days per week with a 7 day operation required to serve periods of peak volumes in October, November and December. The supplier will need to confirm their acceptance of this with reference to any warranted system availability values.

8.2.4 The supplier should confirm that noise levels will not exceed 70db at any of the workstations shown on the layout drawings agreed, and identify any situation where this level is exceeded e.g. near to the compressed air supply which is supplied as part of the suppliers quotation.

8.2.5 The supplier must define their own commissioning testing regime and is expected to cover the following areas:

Static Tests - Functional Tests - Dynamic Tests - Integration Tests

8.2.6 In addition to these the clients and their technical advisors will wish to carry out Soak Tests and Node Tests to corroborate the results of the above unless the suppliers own procedures were directly witnessed and were deemed to be extensive enough for the aspect of the system concerned.



8.2.7 The supplier will need to obtain sufficient synthetic transaction data from the clients WMS software and sufficient number and variety of the clients boxes and totes to properly carry out their tests over a sustained period of time to meet the definition of a Soak Test and they must enable a sustained uninterrupted flow of boxes or totes to be passed over all node junction points to satisfy this definition.

8.3 Section C – Durability Test Period Requirements

8.3.1 The supplier is expected to provide a 12 months running period guarantee which comes into force after the Stage B commissioning procedure has been satisfactorily completed.

8.3.2 The supplier is expected to have designed and installed their conveyor system to a sufficiently high standard such that the functionality described in this document is achieved.

8.3.3 It is imperative that all the electro-mechanical elements of the supply are correctly maintained by the client inline with the relevant preventative maintenance contracts and that the client’s operational staff carry out their ongoing warehouse procedures by following the intended methodology and work practices.

8.3.4 Given the adherence to the content of point 3 by both client and the supplier the following target system availability value should be deemed to be acceptable after any initial debugging under the Stage 2 commissioning testing period.

8.3.5 Overall System availability should not fall below 99.8% (this is high change as needed) during the specified operating periods.

8.3.6 It is clearly recognised that the validity of this Section C monitoring requires the client to have rigorously managed an appropriate preventative maintenance programme.

8.3.7 The supplier must state the level of support which will be provide post system go live June 2004. Critical spares items not immediately available in the UK are expected to be held on site whilst still remaining the property of the supplier.

8.3.8 Should there be any costs associated with the above these need to detailed explicitly.



APPENDIX

Process Map – Now and Proposed

Outline User Functionality Specification

Build Programme



Process Map – Now and proposed

On the following two pages we have produced top level process maps, by specific product flow, of our current set up and how we see the future.

The first map (Bracknell 2002-Key Processes with attributed Resource and Volume) reflects our current Distribution Center at Bracknell, the attributed full time equivalent resource, our increase in full time equivalents at peak and unit volume split by each key process.

The second map (New Site 2004-Key Processes with attributed Resource and Volume) is what we envisage the new DC to look like in 2004. It is based on our assumption that a majority of the unit volume will be channeled through the Auto Sorter. In addition the integration of specific processes will lead to a decrease in the unit handling task.

Our purpose with these two maps is to galvanize peoples thoughts to the opportunity that is open to us future and visualize the 2004 from an operational perspective.




Goods ReceivedOP 3P

Software Restock

PutawayOP 2P

PickOP 15P

Launch OP 2P

ShelvingOP 6P

DespatchOP 2P

Goods ReceivedOP 2P

Peripherals Restock

PutawayOP 2P

PickOP 6P

Launch OP 1P

ShelvingOP 3P

LetdownsOP 2P

DespatchOP 2P

Goods ReceivedOP 1P

New ReleasePickOP 7P

Launch OP 2P

Letdowns DespatchOP 1P

Goods ReceivedOP 1P

Turbo, Ugly & Hardware

PickOP 1P

Run Labels OP P

DespatchOP P

Goods ReceivedOP 1P

WebE-commerce

PackOP P

PickOP 1P

DespatchOP P

SortOP 2P

LetdownsOP 3P

Off

Peak 33Peak 60

Resource Volume Split

Off

Peak 41%

Peak 46%

46%

Off

Peak 18Peak 30

Off

Peak 11

Peak 20

Off

Peak 2

Peak 8

Off

Peak 4

Peak 10

Off

Peak 14%

Peak 16%

Off

Peak 26%

Peak 18%

Off

Peak 19%

Peak 20%

E-commerce volume is low, but 90% breaks down into single unit ships to home addresses.

PutawayOP P

DespatchOP 1P

PackOP 1P

Pick OP 1P

ShelveOP 1P

ScanOP 2P

SortOP 2P

Goods ReceivedOP 1P

DespatchOP P

PackOPP

Pick OP 1P

ShelveOPP

ScanOP 2P

SortOP P

Goods ReceivedOP P

Mint ReturnsSoft/Hardware & Peripherals

Off

Peak 9

Peak 10

Off

Peak 3

Peak 20

Faulty ReturnsSoft/Hardware & Peripherals

Off

Peak

Peak

Off

Peak

Peak

Bracknell 2002 - Key Processes with attributed Resource and Volume



Goods ReceivedOP 4P

Main RestockInc Web

PutawayOP 3P

Lynx sort for DepotsOP P

Pack and DespatchOP 12P

FeedOP 6P

LetdownsOP 3P

Goods ReceivedOP 2P

Tail StoreInc Web

PutawayOP 1P

PickOP 2P

Launch OP 1P

LetdownsOP 1P

DespatchOP 1P

Goods ReceivedOP 1P

Ugly/Turbo Restock

PutawayOP 1P

Mini-loadOP P

LabelsOP 1P

Run Labels OP P

Web PackOP 1 P

Web DespatchOP P

Web SortOP 2P

DespatchOP 1P

PackOP 1P

Pick OP 1P

ShelveOP 1P

ScanOP 2P

SortOP 2P

Goods ReceivedOP 1P

Faulty ReturnsSoft/Hardware & Peripherals

ShelveOP 2P

PickOP 2P

Off

Peak 37Peak

Off

Peak 77%

Peak 74%

46%

Off

Peak 9

Peak

Off

Peak 9

Peak

Off

Peak 23%

Peak 26%

Auto Sortation SystemThis will include all Software, New Release, 80% of Peripherals and Web / E-commerce

Ugly Peripherals and HardwareSome Ugly peripherals will be manually unit picked. Hardware to be turbo picked (case pick).

Scan and SortOPP

Goods ReceivedOP 1P

Mint ReturnsSoft/Hardware & Peripherals

Pack and DespatchOP 2P

Off

Peak 3

Peak

Off

Peak 2

Peak

Resource Volume SplitNew Site 2004 - Key Processes with attributed Resource and Volume


Outline User Functionality Specification

This document is intended to give the Information Technology department an understanding of our requirements to use and integrate Radio Frequency, Automated Mini Load System and Unit Sortation System for the project BLUE DC. The document will endeavour to explain the process of stock movement through the DC as we see it and will form the basis on which we will select suitable system. We do believe that the system should drive the tasks based on volume, priority and work load.

Pre requisites

It will be a pre requisite that specific information is on the system before a delivery of goods is made. This information will be made available to the system at the point of the buyer ordering product. The system should be such that stock ordered will be pre cubed, and that details of case size, weight and quantity per pallet are known. Also, based upon the type of product, the system will pre determine which delivery bay a delivery should be made to. The RF unit will be able to over ride when necessary i.e. when mixed deliveries arrive or supplied error. Anthony Harris has pointed out that it may be difficult for the buyers to get this information at point of order, however, it is agreed that if the information is not available at that time it should be obtained by the logistics department prior to delivery. This information should only be omitted when new product is being ordered since current stock lines should default with this information.

All of the above will need to be confirmed by the receiver when goods arrive and are checked.

GOODS RECEIVED & PUTAWAY

We receive stock predominantly on pallets that vary between UK and European standards in terms of size. The European pallet is dominant. A very small portion of our stock is delivered as single boxes. Obviously on the pallets the product is packed in cardboard vendor boxes. Some of our suppliers provide distinctive labelling which carries bar coded information. At this stage we would like to transfer the whole goods received process onto hand held terminals which work with radio frequency and in real time.

From goods inwards the stock, depending on it being back catalogue, new release, ugly stock (stock over a defined cube which is difficult to handle) and hardware, will have 1 of 5 possible destinations. This information will have been pre determined at time of order, however, there will be an over ride availability for management.



Mini Load

Holds software and small peripherals up to and including controllers. The criteria which defines the use of the mini load at this point is that any single boxes received that are not required for direct picking, or pallets containing half load or under, will be decanted and presented to the mini load.

The Mini Load System holds stock decanted (unpacked) in precise quantities in uniform totes. Each tote is held in a unique location and the product is automatically let down and presented to the pick (Automated Pick Sortation System) on demand for immediate picking.

Once the daily let downs have been completed there will be a daily discipline and strict housekeeping method dictating that any stock that is half pallet or under in quantity will be decanted into totes and fed into the mini load system.

There will need for a quarantine area within the mini load system for audit purposes. This system is probably the first point where we will uncover shortages shipped by vendor.

(Intake/outtake – we need to review the methodology.)

Bulk Storage

Holds software, peripherals and ugly peripherals (ugly peripherals will have their own designated aisle and will be picked direct from their bulk locations). Full pallets will be held in this area.

Product will be let down from here direct to the automated pick sortation system. When bulk pallets are fed into the racking we expect that when the operative scans the UPC, confirms the levels and vendor box quantity, that the system will give the nearest available free location.

When stock is required for the APS system it will come from the Bulk Storage Area, the Mini Load System or the Tail Store.

Stock requirements for the pick will be volume dependent and the system will decide, based on predetermined criteria, which area it should be sourced from. (To be discussed further.)



Ugly Bulk Storage

Uglies are defined as product that is over a specified cube size that cannot be picked by the APS system (we are still yet to define the size). Ugly product will be held in the aisle nearest to the mezzanine floor. Pallet flow will be used at ground level and will be single locations where this product is picked in units and packed into boxes (not totes). As indicated, this is a manual pick very similar to how we currently work in the fast move area or the 9622 bulk pick. We would prefer this pick to be integrated onto RF.

Associated with this area will be ugly stock held on pallets underneath the mezzanine floor which we have determined can be picked by vendor box (turbo/case pick). In this same area, underneath the mezzanine all hardware will be held for immediate turnaround in vendor box (turbo/case pick).

Automated Pick Sortation System

Has all product other than uglies presented to it in the required pick quantities.

As explained above this can accept stock directly from goods received to be picked by the system to stores in wave format. The system is reliant upon the allocations department having pre allocated the by store quantities prior to the stocks arrival, this is a change from our current practice. To achieve optimum efficiencies within is this system it is vital that the allocation of stock has been completed prior to delivery. There should be a mechanism within the (allocations??) system for when there are short deliveries which allows the system to automatically prioritise or decrease the allocated quantity by store.

Tail Store

This area holds anything (excluding uglies) below the top 200 sku’s (still to be discussed) we would prefer this pick to be integrated onto RF.

LET DOWN

Stock requirements for the pick will be volume dependent and the system will decide, based on predetermined criteria, which area it should be sourced from. (To be discussed further) There should be a management over ride to manipulate the let down and pick sequence. Additionally, what follows logically from this is that we should have the ability to view a stores total pick to ensure it is economic to pick and despatch it – if it isn’t then



management should be able to delay the pick for that store. This prompts the need to look at minimum stock requirements at store level during the off peak periods (allocations department need consulting).

Our assumption is currently that we will have 200 locations on the APS system. A normal restock will incorporate 2 waves of picking with stores divided between those 2 waves (no more than 200 in a wave). Is it possible to feed in the 2nd wave as spurs become free?

Let Downs From Bulk

Working in this wave format Let Downs will be generated. We do see the process and workload of Let Downs being fed to mounted terminals on the Order Picker. Each Order Picker will have a scanner on a flexi lead connected to the terminal.

The location to pick from will be indicated to the driver on his terminal. The RF unit will hold the details of all stock to be Let Down within his area (determined by the operative’s PIN). As one sku is confirmed the next sku (efficiency of pick having already been pre determined by the system) will appear on the RF terminal. The operative will scan the location as confirmation, scan a units UPC and the RF terminal will indicate the number of vendor boxes that needs to be picked. The system is aware of the quantity of vendor boxes held in the location and will indicate if it is best just to pick the pallet.

The Let Down is then presented to the mezzanine area which will be known as a receipt point (P and D) and an operative will scan each box before moving it to a conveyor which takes it to the APS. The reason for this is to check what the Let Down driver has picked it correctly. (We have to determine with the MHE supplier how best the APS system will accept vendor boxes. Understanding this will then allow us to decide how stock should be delivered to the system and whether we can work on accumulating product for the 2nd wave.)

Let Downs From Mini Load

This is a fully automated process which holds stock decanted (unpacked) in precise quantities in uniformed totes. Each tote is held in a unique location and the product is automatically let down and presented to the pick on demand for immediate picking. This will speed up the processing of stock, increase accuracy and decrease our reliance on high levels of resource and trucks.



Let Downs From Tail Store

This area as previously stated will hold anything outside of the top 100 sku’s. It may be easier to say that there is another parameter such as anything less than 50 units – needs discussion. Total stock in warehouse and on order falls below a specific amount goes to tail store.

For wave 1 a bulk pick is produced for all product in the Tail Store. We would prefer this pick to be integrated onto RF. This is transferred in totes to the APS system which feeds it to the relevant stores.

There should be flexibility as to when a tail store let down is generated.

PICKING

There are 2 picking areas, the APS system and the Ugly/Turbo pick. We have calculated that as a minimum 75% of the volume will move through the APS system.

Automated Pick Sortation System

Should the tail be loaded onto the APS system first thus saving time for orders to be completed?

APS is a conveyor/tilt tray system which has 200 spur locations branching off it. Our stores would be picked in two waves; within each wave a store is allocated a spur location. The store and pick quantity by sku is fed from the AS400 (or WMS) to the APS systems plc. The quantity for each sku to be picked is presented to the conveyor and the units are fed onto the conveyor/tilt tray; the system then sorts the exact quantity to each store/spur location. We will pack the stock into plastic totes and we suggest that these totes have a unique licence plate bar code and the operative associates the tote to the spur location via a scan. The system still uses an understanding of the cube dimensions of a sku but also incorporates the weight. The system will still use an understanding of the cube dimensions of the tote and therefore flags when sufficient stock has been received to fill that tote. We are anticipating a flashing light at each spur will indicate a tote needs to be packed and also each spur will cut off and hold stock that is destined for its next tote. The packer responds to the light, packs the product into the tote, places it onto the dispatch conveyor, resets the light and opens the barrier to allow the next order to be packed. The speed of the system is only limited by how quickly we can feed the units and pack them into the totes.



The APS system is receiving stock to pick directly from Goods Received, from bulk, the mini load and from the tail store.

The APS system is the second point where we will uncover shortages shipped by vendor. We need to understand what the administration process is if we have been short picked by Let Down. As far as overs are concerned should we still feed and have the system kick out. We also need a view at this point on what happens when the pick ends and how/when we start the next wave and what happens to small orders. It is paramount that we know what stock is in each tote – no stock should be able to pass the barrier once the optimum amount of stock has been received for an individual tote.

Ugly/Turbo Pick

2 slightly different processes. The Ugly pick is picking units directly from vendor boxes which are on pallets which are fed by pallet flow into large cardboard boxes. This pick is very similar to how we manually pick currently; however, we do need to agree on whether we produce some form of licence plate label which mirrors a similar logic to the tote used in the APS system. We anticipate the pick to be driven on hand helds e.g. a pick downloaded to the RF unit for a box and each unit appears on the hand held and a scan of the unit confirms it as picked into the box and the system still uses cube of unit and cube of ship box logic.

The Turbo pick works in a very similar method to what we do currently as it is just the case of producing a carrier depatch label and applying it to the box. However, we will require a system to produce the label automatically based on the unit quantity per box and the number of boxes to be despatched to a store (information that is predetermined by the allocations department). The licence plate barcode (and the carrier branch number) should appear on the carrier label. All picks need to be handled by the WMS.

DESPATCH

Dispatch is fed by 3 different areas-

Ugly Pick (Game Cardboard Box) Turbo Pick (Vendor Cardboard Box) Automated Pick Sortation (Game plastic tote)

We assume that the carrier label has been generated automatically for Turbos. Carrier labels for the Ugly pick and the APS system are generated by a scanner reading the licence plate barcode. The carrier label should be



fully bar-coded and should carry the carrier branch number. Although we have not completely decided on the layout of this area since the carrier needs to have input because they will be staffing it, one thing is for sure, boxes will pass carrier despatch mounted scanners which confirm receipt to the carrier and give us our first tracking point. The carrier branch number which will be clearly displayed on the carrier label will allow the carrier to sort into their branch order giving Game further logistical cost savings.

(What is our maximum box quantity despatched in any given day or week?)

MINT RETURNS

The APS system could be made to work in reverse by changing the spur/store location into a sku location. It is envisaged that mint returns will be opened at the feed points of the APS system and the store transfer note number entered into the system which will pull up a match from the AS400. We would then feed the stock through the scanner which would match lines and units against the store transfer note and automatically feed back unders and overs to the AS400 and store file (Stuart’s comments). The APS system would then automatically sort the returned stock by sku using cube logic to pack the box (cardboard).



ENCLOSURES

Current Processes & Procedures

Video

Plans - Existing LayoutConcept Layout for New DC Specific Sectional Elevations for New DC

Disk - Data Analysis


itt document

Documents