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Warehouse Management Systems: A Key Element to M&D Digital Transformation

January 21, 2020

› Individuals• Participate in entire webinar

• Answer polls when they are provided

› Groups• Group leader is the person who registered & logged on to the webinar

• Answer polls when they are provided

• Complete group attendance form

• Group leader sign bottom of form

• Submit group attendance form to training@bkd.com within 24 hours of webinar

› If all eligibility requirements are met, each participant will be emailed their CPE certificate within 15 business days of webinar

To Receive CPE Credit

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Presenters

Matt Looker, CPA, MCPSenior Managing ConsultantBKD Technologiesmlooker@bkd.com

Tim Sparks, MCPSenior Managing ConsultantBKD Technologiestsparks@bkd.com

1. Introduction

2. Why traditional WMS is lagging in the digital age

3. How will WMS transform your business

4. Importance of integration

5. What to look for in a WMS

6. New technology & looking ahead

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“Whereas before, logistics and warehousing processes were seen as cost centers, today, they are a source of competitive advantage if they can be run with the necessary speed and flexibility.”– Marco Ehrhardt, Managing Partner & CEO Ehrhardt Partner Group

Leave the Silos for the Grain

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› Best-of-Breed WMS will reduce inventory carrying & opportunity costs!

› Best-of-Breed WMS will reduce labor costs!

› Best-of-Breed WMS will increase storage capacity!

› Best-of-Breed WMS will increase customer service!

› Best-of-Breed WMS will increase inventory accuracy!

The Claims

› Inventory levels predominant factors• Lot sizing

• Lead times

• Demand variability

› Labor savings• Automated data collection needed (check out our last webinar!)

• New labor costs to maintain new systems

› Safety stock red herring

The Reality

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› Order management• Smaller

• Quick succession

• Third-party carriers

• Visibility

› Pre-fulfillment

› Fulfillment

› Shipping & delivery

The Challenges

› Clashing of generations• Workforce

• Software/WMS

› Company management• Historical static data

• Inventory levels

• Bottlenecks to milestones

› Inventory visibility• Accessible

• Accurate

• Real-time

• Integrated through supply chain

› Fulfillment• Workflow

• Transparent

• AI & machine learning

How Will WMS Transform Your Business?

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› Automated data collection• Efficiencies & cost savings

› Live tracking• Agile & responsive

› Proactive maintenance• Preventable bottlenecks

› Data/history• Detailed material movement

• Procurement to shipment/delivery

How Will WMS Transform Your Business?

Data Sourcing: Warehouse

Industrial Internet of Things(IIOT)

• Real-time recognition & traceability

• Automated ordering

Must-Haves

• Data flexible –real-time centralized data management

• Speed & agility• Fully automated

integration of data

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Data Sourcing: EDI

Inbound

• Data accuracy • Eliminate human

error

• ASNs• Labor savings• Simplify receiving• Leverage

automated data collection

Outbound

• Optimal flow• Visibility for “next”

process

• Carrier communication• Quicker fulfillment

times

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Integrated Logistics – Foundation for Digital Success

› Automated data collection• Efficiencies & cost savings

› Live tracking• Agile & responsive

› Proactive maintenance• Preventable bottlenecks

› Data/history• Detailed material movement

• Procurement to shipment/delivery

Integrated Logistics – Foundation for Digital Success

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› Customizability & adaptability• Changes with customer & regulatory requirements accelerating

› Open API interface• Synchronize all market channels for inbound/outbound electronic commerce &

fulfillment

› Transportability• Desktop, tablet, mobile devices, etc.

› Scalability• Cloud & on-prem both viable

Things to Look for in a WMS

› Data driven• Real-time supply chain & inventory information available through accessible dashboards &

reporting

› Optimization of fulfillment• Investigate AI & machine learning options

• System must be able to drive off both inventory & customer-based rules

› Flexibility in fulfillment• On-Site, DC, supplier drop-ship, & other unique methods must be accounted for

› One version of the truth• Integrate with ERP & other systems to be the master of all inventory

Things to Look for in a WMS

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› Moving away from device specific interfaces & into browser-style screens

• No local installations, transportability across devices, less IT time for new hardware

› Mass adoption of tablet & mobile devices• Possible cost savings compared to traditional scanning hardware

› Cloud technology • As companies gain faith in cloud technology, many are migrating away from

in-house server based systems

Recent WMS Breakthroughs

› End-user personalization ability

• No need for IT or vendor intervention to optimize the user experience

› Localization options

• Vendors now offering country &/or region-specific versions of their solutions catering to localized needs

› Barcoding

• Traditional 1D & newer 2D options available

Recent WMS Breakthroughs

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› IoT solutions for tracking & tracing through facility

• Drivers of IoT adoption: regulations, labor/overhead/material efficiencies, product quality & customer experience

› Better integration to the cloud & more open APIs available

• Continued development for ease of adding new functionality

Looking Forward

› Data-centric view on decision making

• Data streams from internal & external sources

• Data continually pushed/pulled through open API interfaces

› Usage of drones, conveyor systems & robots

• Look to the big players in warehousing & logistics

• Robotic forklifts already in-place & drones are being well adopted across a variety of industries

Looking Forward

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Continuing Professional Education (CPE) Credit

BKD, LLP is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org

› CPE credit may be awarded upon verification of participant attendance

› For questions, concerns or comments regarding CPE credit, please email the BKD Learning & Development Department at training@bkd.com

CPE Credit

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The information contained in these slides is presented by professionals for your information only & is not to be considered as legal advice. Applying specific information to your situation requires careful consideration of facts & circumstances. Consult your BKD advisor or legal counsel before acting on any matters covered