operational agility for your distribution center

Cost P

er U

nit

PROFIT

Operational

AgilityA new solution for order fulfillment in an omni-channel world

Warehouse Execution Software Optimize Labor & Equipment

You’re tired of talking about Omni-Channel

You hear it everywhere, but what exactly does it mean for your business?

Ch an ne l

O m n i

Channel

Omni

Omni Channel

Distribution Science®

Most retailers understand the importance of omni-channel, but admit that they struggle to define exactly what it means at an organizational level.

But it’s really not that complicated !!

?


Omni-Channel is a Promise


And it’s not much more than that. ! Omni-Channel is a promise you extend to your customers for a full, client-driven experience. It is an experience that revolves around providing your products to customers when, where, and how they want them.


Your store locations, online presence, mobile purchasing app, ship to store, return to store…these are all part of that promise you extend to your customers.

But it’s not not just the opportunity,

it’s the execution. !


But really, that’s a pretty promise!BIG


And it’s one you’re struggling to meet! While placing your customer at the center of your model seems like a great idea, back-end distribution models can’t remain competitive with the rapidly changing and multiplying schemas marketers are pitching to customers. Customer


This is particularly true for your Distribution Centers

Many clients we work with know their DCs are an important part of their value chain, but the DC is also the hardest hit by the omni-channel model.

Distribution Science® Reusable Intelligence

For some, DCs have been left in stale states. They were traditionally built to handle predictable store replenishment, and now they’re struggling to compete with the volume and complexities of multiple order profiles and priority ship dates.


Others invested heavily in automation and MHE but continue to rely on legacy solutions that lack the agility to effectively pivot when order profiles shift

on a regular bases.


Either way, the lack of agility inherent in your system is eating away at your profits.


Does this !sound familiar ! ???

?

But!what can !you do?!

???

Don’t Buy Anything!

First things First

You’ve probably already sunk a ton of capital into your DCs. There’s no reason to continue to invest in solutions until you discover how to make your existing

infrastructure more aligned, more intelligent, and more agile.

You stuff!

don’t need more

You needwhat you haveto work better, together.

Buying a new sorter or WMS isn’t going to do that!

What you really want is to be competitive. And the only way to achieve that is by closing the gap between customer engagement and the executing of the

promise in the most cost efficient way possible. "

Customer engagementExecution

That’s a tricky proposition!

It can mean a whole host of issues and changes depending

on your business

And that’s not even accounting for what those marketers may be offering tomorrow

!

It’s incorporating multiple channels

It’s dealing with changing

and varied order profiles

It’s meeting ship-to deadlines

& it’s much, much more

So how do you solve a distribution problem that means a ton of things today and maybe more tomorrow?

And how can you successfully implement solutions today without negatively impacting how you adapt to new challenges tomorrow?

?

? ? ?

You could try MHE!

The problem is that MHE vendors continue to innovate around their own offerings instead of finding ways to use their technology to create holistic health inside their customers’ DCs. The result has led to many facilities misguidedly plugging in costly, new MHE into their systems, only to fall short of the returns they aimed for.

Most MHE will do exactly what it claims to do…!

What about Software?

Warehouse Management Systemsare great at managing your...

Inbound Shipments

Labor Management

Inventory

Warehouse Control Systemsare fantastic at managing the physics of your DC

moving conveyors

picking

machinery

The problem occurs when you put the two together, creating a giant gap in your order processing flow. This forces you to throw orders over a technological fence

inside your own warehouse.

WMSWCS

We’ve seen a lot of DCs!!

And what we’ve found is that most people are throwing money at these various solutions, investing heavily so they can get in front of the problem.

The most aggressive make a valiant attempt at creating state-of-the-art DCs, chalked full of automation and advanced MHE. All in the name of fulfilling the

omni-channel promise.

Omni-channeltron 4000 X1

But piecemeal equipment and legacy systems are simply not meant to be agile. They’re meant to perform their

single function inside the warehouse.

Function AFind box Pick box

Function B

And what happens when you run out of real estate trying to facilitate the rapid fulfillment of on-demand orders?

Cost

Per

Uni

t

You've got too much labor, too much automation, not enough real-estate. Your cost per unit shipped has skyrocketed. Sure, you're pumping out the volume necessary to fulfill the promises, but it's eating a hole through your earnings!

You've already invested heavily in your warehouse:!

You don’t need to sink more money into WMS, ERP, MHE or other solutions that might work great alone, but can’t play as a team!

WMS WCS

And simply ripping and replacing these solutions isn’t going to create agility or alignment in your operations.

Agility

Alignment

Chances are you’ve tried this before

Did it work?!

? ? ?

Before you pour more money into your DC, why not first re-think what an omni-channel optimized facility looks

like for YOUR BUSINESS, today and tomorrow.

Are your order profiles changing? If so, how are those order cycle times impacting the traditional orders being fulfilled? Are you eroding your current customers by way of introducing new customers? Is the inventory coming into your facility aligned with your outbound processes? How does work flow through your DC? Do short waves make sense? Long waves? Do you need to go waveless to compensate for changing eCommerce orders?

Ask Questions!

1

2

3

?

???

A real solution begins with an analysis, not a product

Not an analysis of a problem, but a systematic look at the holistic health of your warehouse as seen through the lens of your business goals and

existing infrastructure and systems.

You need to break free of the mindset that parses out solutions. For example, implementing solutions like a labor management solution might bolster the efficiency of your labor, but what happens when they out pace your MHE?

You end up with bottlenecks and idle labor. !

bottle neck

...you need a system that can implement a solution based on your analysis. You need a solution that has the capacity to leverage and link the disparate

islands operating inside your DC.

NEXT…!

The system should be built with the modularity to allow you to plug and play different components, all while creating holistic success, so it may

align, cohere, and improve what you already have.

1

23 4

Ideally, it should be able to fit itself within your existing system to bring holistic value, regardless of what you have, and not inadvertently sub-optimize existing solutions already

doing a great job solving a specific problem.

What you need is a nuanced solution: One that builds and adapts from your problems and from your assets,

so you can reach your business goals,

Even as those goals change!

Just as your channels and order profiles will continue to shift and multiply

Order OrderOrder Order

Order

OrderOrder

Order

Order Order

Enter WES WES

A warehouse execution system (WES) provides a practical solution by creating a connective tissue between existing systems such as WMS, WCS, and MHE, aggregating their data and

aligning their functions under a unified platform.

WES

WMS WCS

This isn’t a new term for a big bang implementation overlay of a WMS -- it’s a complementary solution set to solve the

problem holding the rest of your systems back.

A well designed WES will give you the agility and holistic success to do so without the inefficiencies that eat away at your earnings.!

Combined with the modularity that allows for implementing greater intelligence,

workflows, and systems to be added to address your specific problems.

PROFIT

x x

The Reddwerks Solution !Warehouse Execution Powered by Distribution Science®

The Reddwerks approach is built on creating holistic health within your DC among your existing systems as well as injecting intelligence and agility.

It is a nuanced, consultative solution based on a systematic analysis of your existing facility, followed by the implementation of an execution layer based on your

facility’s needs, pain points and business goals.

Analysis Plug In AchieveAlgorithm

Our process begins with our in-house operations engineering team. We use our patented process of systematic analysis we call Distribution Science® to assess

and solve the problems occurring inside your warehouse based on the logical and physical constraints created by your existing infrastructure.

This methodology is built around using real data to run models and simulations of your DC. We hypothesize and test those hypotheses for

potential solutions to balance work across your DC, and boost the performance of your labor and MHE.

Real Data Model

Then, depending on the way we best believe our solution can help, we implement the WES in your system to handle order processing, and include workflows,

solutions, and system directed capabilities to boost overall performance and give agility to your system.

Order Processing

Workflows

Solutions

System directed capabilities

WESPerformance0% 100%

Agility0% 100%

The Reddwerks approach is built on injecting intelligence and agility into your existing distribution centers, which

has lead to some compelling ROI by way of:

Reduce Direct Labor Costs Increase Facility Throughput Create Process Alignment

Improve MHE Utilization Enable Operational Agility Extend Infrastructure Life

Whether you are looking to optimize labor efficiency through system directed execution, increase other material handling equipment

utilization, or extend the capabilities of your existing WMS or ERP, Reddwerks Warehouse Execution Software can help take your

distribution facility to the next level.!

WES

To view more resources about Warehouse Execution Software, Operation Agility and Dematic Reddwerks, please visit our learning center www.dematicreddwerks.com

Thank youWES

WCS

WMSCost Per Unit