A few times every year I suddenly discover solutions and ideas that completely surprises me. Today was one of these days. We have all heard about sure step and rapid start, and they are great tools. Now To-Increase has created an integrated business process tool that allows you to model your business processes right from Dynamics AX. When I often see tools like this, I often feel that it is a framework, and you need to build all yourself. But the To-Increase Rapid Value is actually filled with contents, and real and proven business processes. Here are some screen shots from the application.

One of the best part is the smooth integration to VISIO and other Microsoft Office applications. Pick you processes from Dynamics AX 2012, and use them in the Visio to show the flow of your business processes.

It’s also works with Sure step and Rapid Start Microsoft, and is a valuable addition to this. I look forward to working with customers on this tool, and I’m quite sure that this will bring rapid value to our customers. My last comment is “bye, bye whiteboard, and long process definition meetings”

If you want to take a closer look at it, browse into the To-Increase site here:

The first stage of the fulfillment cycle is the way in which your business processes a customer’s order. How your business handles orders has a major impact on customer service, from encouraging initial interest to prompting repeat business. Factors such as price, quality of product or service, range of goods, stock availability are vital to achieving sales in the first place, but a responsive, fully automated order-fulfillment procedure plays a key part in overall customer satisfaction.

Improving how you handle orders

You need to know exactly how well your business deals with order handling before you can make improvements. You should evaluate how orders are processed by doing the following:

1. Identify the connections between sales, planning, purchasing, etc. Flow charts and activity diagrams can help you map out your processes and highlight the links. There are simple software tools like (Microsoft Visio) available to help you do this.
2. Consider linking your systems to those of your customers if you operate in a business-to-business environment. Find out what systems they use and determine if yours are compatible.
3. Ask staff for their input – they may be able to help you identify problems and solutions.
4. Encourage customers to give you feedback on how their orders were handled.

Automating your Dynamics AX system can help achieve the speed and efficiency you need from order processing. It brings together all departments that handle the order, from website or sales reps to warehouse staff. Tie in your website with other facets of your business, such as planning, manufacturing and distribution. Connect your suppliers and customers to your Dynamics AX 2012 system. Integrate your sales order processing closely to your website, and when customer orders arrive in your system they can be automated, and even transformed into purchase orders to your suppliers. With this they can benefit from more timely, accurate order information, with invoices sent and processed automatically.

Automating your internal systems may speed up order processing, but remember that some customers may still prefer personal interaction to maintain the customer service experience.

Ensuring that customer orders are delivered quickly and efficiently is integral to any e-commerce service. Delivering what you promised relies on seamless interaction between your business processes and the actual fulfillment service that you have. For those products requiring a physical delivery, the issues associated with conventional logistics need to be addressed alongside the technology needed to manage the process.

Dynamics AX 2012 do have many processes that can be automated, and many companies have already done this. Pretty much can be done without making customizations or choosing an ISV solution.

Let’s say we have the following simplified process:

Confirmation

I will not go through the recommended setup for automation, because this varies for very implementation

The first place we can automate is on the generation of confirmation. You can find the menu item under Sales and Marketing\Periodic\Sales Update\”Sales order confirmation”

Use the late selection option to make sure that the query specified is used every time the batch is executed, and also use the print management destination to control the printout or destination of the form letter. Then set the job into batch, and let it execute once a day, or as often as required.

Picking route

When the shipping date is closing, then release the picking route. You have several options here, but I’ll focus on the simple one. You can find the menu item under Sales and Marketing\Periodic\Sales Update\”Picking list”.

In addition to what is described on the confirmation, make sure that only confirmed sales orders are sent to picking. Also, if backorder handling is allowed, then enable the “Reduce quantity” so that the picking route is only released of items you have on hand. There is another option under the “other”-tab, called “Reservation”, that I would recommend checking that it is enabled, because then the items will be reserved against the order. When the picking route is printed, then pick the items. Put it into batch, and let it run as often as required.

Picking route registration (The manual step)

The next step in the process is that actual picking. Some companies choose to release picking routes, where the items already transactional picked, and this is a setup on the parameters. But I prefer and recommend the picking route registration screen, available as a menu item under “Sales and Marketing”\Journals\Sales orders\”Picking list registration“.

In AX 2012 the picking route can be printed with a barcode version of the picking route id, that can be scanned into the picking route field on top. The next step is to finalize the picking, and make the necessary adjustments on quantity, dimensions (like serial, batch, pallet id etc), and then use the “UpdatesàUpdate all/selected” to actually pick the items, and therefore also updating the on hand values correctly.

Packing slip update

The next step in the automated process is the packing slip update, that is available under “Sales and Marketing\Periodic\Sales update\”Packing slip”.

Choose only to packing slip update the picking sales orders, and print out the packing slip either send it automatically on email as a PDF to the customer, or even electronically as a ASN/XML to the customer. Depending on how the process is, the packing slip batch job can automatically be printed or sent electronically.

Invoice update

The last step in this automation of sales order processing is the invoicing. The menu item is placed at “Accounts receivable\Periodic\Sales Update\Invoice“.

Set the Quantity parameter to “Packing slip”, and the invoicing will invoice all packing slip updated sales orders. Set up the printout and use the print management destination setup to control where and what should happen with the form letter. Set up the batch-job to run periodically for automation.

Summary

There are many more options available in Dynamics AX 2012, for consolidation of picking, packing and invoicing, but my main message is to start to look into automating these processes to speed up, and reduce the time spent on routine tasks. Let your Dynamics AX 2012 be the engine that pulls the processes, instead of valuable people that needs to push the processes. This will free up time to other important tasks.

What I also want to mention is that when the requirements to automation increases, and you cannot find the solution to your problem in the standard functionality of Dynamics AX, then please evaluate the To-Increase Warehouse Management and Distribution. Here the automation has been lifted a few steps to support mass transactional processes and the integration to warehouse equipment and to freight forwarders.

The utilization of barcoding and barcode readers has transformed business efficiencies of an incredible number of businesses both large and small. Simple still effective, the bar code as an invention has made itself indispensable only by the multi-faceted advantages that it is offers to the user through the entire barcoding spectrum. Some of the killer advantages of these marvelous invention is.

1: Speed plus Accuracy

A really good information entry operator could enter a Twelve digit number (including product code one example is) on his PDA in approximately 4-5 seconds, but the average could well be more like 7 just a few seconds or more. The same operation in case performed with a bar code scanner would take just one flick in the wrist, less than a second. The use of the bar code scanners is unmatched to use ability to plough through significant volumes of these operations effortlessly. While an information entry operator will make keyboard errors whenever he types with data, the chances of a new barcode reader giving wrong output is actually nonexistent tending almost for you to zero. For all simple purposes, accuracy is exact, every time this barcode reader creates its flowing movements over the barcode.

2: Implementation Ease

You decide you need to start using barcodes to your products but are uneasy that you have never completed it before? Fear not, to get in 10-20 minutes of energy that scenario could possibly get reversed. The use of barcode readers is almost childishly uncomplicated with no prerequisite intended for usage. Not only can any individual do it, but they are able to do it quickly in addition for the learning curve of using barcodes is extremely steep and brief.

3: Bang for the dollar

If you could get information quickly in addition to accurately, it could exclusively mean a tighter provide chain and well-knit company processes based on these records. With superior information and facts, you can take excellent business decisions that increase shareholder benefit. Imagine what disastrous consequences incorrect info could have on your organization! A vast collection of bar code scanners and barcode code reader usage data has revealed that the investment made in this technology pays back in as short a time as 6 to 10 months ? Way faster in comparison with most modern technologies of which attempt to improve the approach we take to conduct our enterprise. Thus the bar code genre is one the place that the customer truly may get good value for money and high return on investment.

But there is more.

Did you know that Dynamics AX 2012 do have a complete platform for building barcode enabled functionality? Dynamics AX is already using this in several places to give us some idea of how it can be used. A EAN128 barcode label often looks like this.

One of the places where the use has been taken to the extent is in the arrival journal.

Here there is a field for scanning EAN128/UCC128 barcodes. The great thing about EAN128, is that is the barcode can contain multiple information. So in the example, I have included pallet/SSCC and itemId, and when is it scanned, the system will automatically fill in the fields for me :

To give you an insight, I have created the following job-code that shows how to use the barcode classes:

This will generate the following infolog:

In my example above in the item arrival journal, I just took the Barcode HR, then removed the (), and pasted it into the arrival journal, and then the decoding happened, and the fields where automatically filled in.

Out of the box, Dynamics AX can decode the following application identifiers of EAN128:
(00) SSCC – PalletID. The item arrival journal will also create the pallet ID in DAX
(01)+(02) EAN – Itembarcode, that will then identify itemid + product dimensions
(10) Batch
(21) Serial number
(30) Quantity –

But do not despair if you feel something is missing. Microsoft has made it easy for us to extend the number of application identifiers, that we can fetch out of a EAN128 barcode. Take a look at \class\BarcodeEAN128 .classDeclaration(): for other EAN128 application identifiers see http://en.wikipedia.org/wiki/GS1-128

For more information about the barcode foundation in AX 2012, take a look at http://msdn.microsoft.com/en-us/library/barcode.aspx

I also want to add that the To-Increase WM&D solution are using this technology several places, and I know that the functionality will be extended as the solution goes forward. The WM&D solution uses integration to BarTender to produce the labels, but Dynamics AX do have capability to print barcodes.

Source : http://www.ezinetoparticles.com/3-very-advantages-of-barcoding-and-bar-code-scanners/

Today, companies management is expecting that the financial departments is contributing with up fresh data to support decisions and with a good overview over regulations.

If your answer is “no” to one or more of the questions below, you should continue reading to see how an effective and correct periodic closure can help your business:

•    Do the financial functions deliver what they are supposed to, in an effective manner and at desired cost?

•    Is reporting done in an appropriate manner?

•    Is your company focusing on the appropriate management parameters?

•    Does your company have the right competencies and capacities?

Experience shows that solid routines tied to an effective periodic closure gives:

•    Improved reporting and basis for analyses

•    Correct KPI’s and measurements

•    Improved budget and forecasting, and follow-ups

•    Effective transaction processes

•    Effective operation and organization of the financial function

•    More competent and content employees

An example of a periodic/monthly closure checklist with the use of Dynamics AX can be:

(T = the first day in the next period)

This checklist will give your organization:

• More effective periodic closure and reporting
• Determined management and financial reporting
• Effective budgeting, estimation and reporting
• Improvement of structure and efficiency in the financial function
• “Shared Service Center” and merger of financial functions possible

The current slotting in WM&D is based on Pre-slotting. This means that there is a system to do the slotting/location planning upfront. This works quite good in environments where they have a lot of picking locations, and where it is known what products that should be sold in the next period.

The main processes for doing pre-slotting is:

1. Select items that should be included in the slotting
   
2. Select locations that should be included in the slotting
   
3. Map items to locations in a “simulated plan”
   
4. Activate the location plan, and archive the old location plan.
   

In std DAX, the slotting is stored in a table called InventItemLocation, that looks like this:

Here we can see that it is possible to add one picking location per item dimension. In WM&D it is possible to have multiple picking locations per item dimension per warehouse. To make this possible, WM&D has created a “shadow” table that mirrors the InventItemLocation:

Then there is a possibility to have multiple planned picking locations per warehouse per item. In WM&D we also have the ability to simulate the slotting into a slotting plan, before activating it, and there is therefore a “plan” table exists (WeeInventItemLocationPlan). Since it is sensible to also track previous locations, an archive table exists (WeeInventItemLocationHistory).

But why am I writing this ? The reason is that I have extended the WM&D slotting with a new concept called Dynamic Slotting. I previously described the benefits for dynamic slotting can be seen here.

Dynamics slotting overview

Dynamic slotting—managing the physical location of inventory—is critical to workforce’s ability to fill orders quickly, accurately and safely. Dynamic slotting determines the best picking profile for the warehouse and suggests timely, intelligent adjustments as inventory trends change.

Dynamic slotting uses data on each product’s physical characteristics and order frequency to calculate a relative value for each potential slot position within the warehouse facility. The values for all products are aggregated. It then compares millions of slot combinations against user-configured strategies to determine the optimal layout for the warehouse.

As input data changes, such as seasonal ordering trends or new or discontinued products, Dynamic Slotting can incrementally revise its recommendations to keep the warehouse at maximum efficiency without costly overhauls.

Dynamic slotting can also track changing inventory to enable continual improvements. The Dynamic slotting can be used from day one to plan racking requirements and maximize capital investments in costly warehouse infrastructure.

Dynamic slotting automates and manages many critical warehouse slotting components, including:

• Organize by velocity(real and expected) to maximize throughput
  
• Balance volumes among the aisles to decrease bottlenecks
  
• Identify golden zones to reduce worker fatigue and accidents
  
• Keep similar items separated to reduce miss-picks
  
• Group by product families to improve customer service
  
• Optimize placement to reduce product damage
  
• Determine optimal capacity of pick locations to reduce replenishment trips
  
• Simplify picking by storing kitted items together
  
• Apply customized filters to target specific SKUs for re-slotting
  
• Automate the slotting process to minimize manual tasks
  

Dynamics slotting on top of WM&D

To implement dynamic slotting in WM&D I needed to extend the algorithms that WM&D are using. The WM&D has therefore been extended with the following functions/tools:

1. ABC – Classification of items
   To give the fastest items the fastest locations, will reduce the picking time. Pickers need to walk less, and the warehouse can deliver more within the same time. The main criteria for calculating this is to find a way to calculate item velocity. It is easy to calculate based on history, but if it is a new item, then a forecast must be applied.
   
   
   The algorithm is very close to the std. ABC classification found on items, but here all items/sizes/configs will be classified as A, B or C, based on real and expected issues an item will have. I have also included a weighting of the items issues, so you could say that real picks should weight 60%, while forecast and ordered should weight 20% each. Then new items will get a proper A-B-C classification without that it has been in sale. The ABC value of item+dimensions is just a way of making things a bit easier for the users. Behind there exists a full transactional system, that evaluated many parameters, and also lets you correctly get the right ABC classification of new items without recalculating all items each time.
   

    

2. ABC classification of locations
   

   To classify locations, a simple ABC classification PDA form has been created, that makes it simple for the warehouse worker to select which location should be classified as A, B or C.
   

   
   

   The user just selects classification, and then starts scanning locations. What should be A, B or C location must be a subjective classification by the warehouse users.
   

3. Automatic weight and volumetric calculations
   Since WM&D can automatically record volume and weight of every inbound cargo, this information can be used to automatically populate the average weight and item volume. In std. AX weight and volume is properties on items, while on WM&D you can find these data also on the sizes. (note : Having it on inventDimCombination would be better, I agree)
   
   
4. Create a controllable picking sequence
   

   One important aspect we see, is the ability to pick as fast as possible, by minimizing the walking time. We need the ability to pick ascending and descending according to the Aisle. To control this, WM&D will use the sorting criteria on the Aisle Register :
       
   

   The descending field (that is a std. ax field), will both control the locations sort-code, but also in witch direction the aisle will be picked in a consolidated picking scenario using PDA’s.
   

    

   If we mark that each rack is an Aisle, then WM&D is able to create a consolidated picking route like this:
   

   If we define that an Aisle is the “space” between the racks, then WM&D is able to create a consolidated picking route like this:
   

   This will save up to 20% in walking distance, because an aisle is picked in a “zig-zag” picking pattern.
   

5. Hot-spot analysis
   

   To make sure that we don’t get “hot-spots” in the warehouse, the dynamic slotting will try to balance and spread out the “hot”-items through the warehouse. This is done by maintaining an expected pick load (Hot-spot sort-code) per aisle. The algorithms is making sure that as soon as a “hot” item has been slotted to an aisle, the aisle will be sorted/prioritized down at the next dynamic slotting approach. This will evenly balance the pick-load per aisle.
   

6. Release locations that are no longer used.
   The first step was to create a system that automatically free up space in the warehouse. Without making locations as free, I cannot start using it for other items. I therefore created a class that looks on on-hand of an item, to see if the current fixed location could be released. This is a typical scenario in the retail industry, where products are only purchased in a defined quantity.
   
   

   What this program remove current location from the location plan, if the on-hand is zero, and there are no expected receipts. When the items arrive again to the warehouse, the put-away will dynamically find a new location for the item.
   

7. The actual dynamic slotting
   The dynamic slotting works like this. When there is a receipt (from a purchase, or internal transfer) or an internal replenishment from a Buffer Location to a Picking location, then the dynamic slotting will first check if the item do have a fixed location, else give the item a fixed location, that suits the velocity criteria for the item.
   Not many nice forms to show this, but you can see the results in the WM&D location planner :
   
   

   But we see that “A”-items gets allocated to “A”-locations automatically. What we also have seen in the live customer environment, is that the picking now takes drastically shorter time. Here is a real life example from a consolidated picking route :
   

   
   

   58 pcs has been picked from 9 locations, within 5 minutes. If we estimate around this, it means that with the new Dynamic Slotting it could possible for a single picker to pick from more than 100 locations per hour, and in a full working day this would be 750 locations and, with an average of 4 pcs per location, this could mean more than 3000 pcs per picker per day.
   

    

   Disclaimer:
   

   The solution shown here is not a part of standard WM&D, and has therefore been built as a customer customization on top of WM&D.
   

At a customer site, we sometimes saw that the recid is “jumping” in Dynamics AX 2009. We cannot explain why, but it seems to happen a few times every year. To deal with this, we created the following SQL trigger :

Thanks to FSB-development that came up with this. I share it to the community, because it would be easy to modify for other purposes.

To-Increase have released a customer reference video of Spar Kjøp.

Take a look. It is very nice, and I’m quite proud to have contributed to this customer.

This week I’m looking into dynamic slotting for this customer.

First I would congratulate Microsoft with the release of Dynamics AX 2012. It looks very nice, and we get very good feedback from the marked on it. But this blog post is questioning the statement that AX 2012 is much faster than AX 2009. The reason why I raise this is because I often feel that the AX 2012 actually is slower than AX 2009 when it comes to opening, and using AX forms. I was then wondering if it could be related to the fact that I was using the Hyper-V image from Microsoft. I also wondered if it could be related to the hardware we used. To check out this, I decided to make some simple tests to compare AX 2009 to AX 2012 performance.

The first thing I did was to eliminate hardware restrictions. I get a new portable PC, with 8 CPU cores, 16 Gb RAM and 2 SSD disks. I then installed Windows Server 2008 R2 and MS SQL 2008 R2 with all updates from windows update. I then also installed AX 2012 locally from scratch, and applied the Cumulative 1 to the AX installation.

Then I decided to look into the form/List page “All customers”( CustTableListPage), because this form is functionally quite similar to AX 2009.

AX 2012 CustTableListPage form

AX 2009 CustTableListPage form

I then focused on opening this form, and time it. To get the best results as possible, I decided to open the form a few times before I started to time the opening of the form, to make sure that the AOS and SQL server had cached every thing in memory.

My findings was this:

I have retried in several different environment and configurations, and the results are pretty much the same AX 2012 is SLOWER than AX 2009, when it comes to forms. And 3-4 seconds to open a form IS regarded as slow, because we often get the response requirement from customers.

I decided to see where AX 2012 is actually using time, and therefore started using the code profiler to time the AX 2012 with and without AERO

We see that AERO enabled, the client actually needs to perform 45 additional method calls when opening this form on AX 2012, but the number of method calls compared to AX 2009 is more than doubled.

Here is the profile for when opening the form in AX 2012:

We see here that AX 2012 uses a lot of time in the SysSetupFormRun.init(), and that the SysSetupFormRun.loadUsersettings() is actually loaded 10 times. The reason for this is the fact boxes related to this form.

If we hide the fact boxes, we get a much better performance :

In the profiler we see

So the conclusion is, that to speed up the AX 2012, reduce the number of fact boxes that is loaded, because for each fact box added to a form, the SysSetupFormRun.loadUserSetting() is slowing your system down.
To hide fact boxes, the following can be done :

Also remark that AX 2009 is faster, because of fewer method calls. AX 2012 seams to redraw the screen for each loadUsersetting.

PS! It would be fun to compare AX 3.0 to AX 2012. Here I think the difference would be even larger.

The new version of Dynamics AX 2012 looks very nice, and it can be downloaded from Mircosoft partner source.

But one of the initial reactions to the released hyper-V, was that I experienced that the performance was poor. I especially saw that refreshing forms took several seconds. We quickly saw that it was not lack of hardware, because the hyper-v was allocated with 16 Gb ram, 4 CPU cores and a raid for disk.

But I found a solution that worked perfectly for me :

Then the AX 2012 RTM on hyper-V started to live up to its claim of 20 times increase in performance compared to AX 2009 on selected areas.

Try it.

In standard AX the production module do have a separate process of generating picking routes, but it is possible to set up std. AX so that consolidated picking routes are generated. The advantage is that then the picking routes generated from production is the same as picking routes from sales and transfer orders. Then the warehouse workers will use the same picking screens and processes regardless of there the picking process is initiated from.

Production Picking

While processing the production order, it is important to have required goods picked from the respective location at appropriate time. While working with large scale warehouses having bulk locations for picking goods, it is highly required to have optimized production picking to save the cost and time. This has become a challenge for the warehouse managers to transfer all necessary goods to the shop floor in an optimized way.

Using the WM&D production picking process, all goods required at shop floor will be shipped at once and would guide Fork lift or conveyors to optimistically do the picking and shipments.

This article explains the functionality of and how to use the production picking.

Process description

Understanding Production picking process integrated with Standard AX

Production picking would require consolidated picking setup to be done. Once the consolidated picking process is setup for the production order, the picking process will use shipments to complete the picking.

Please find below the process flow from Production order to picking of goods using forklift. This is explained in below section:

Please find the reference of the statuses for orders based on specific setup and using the above work flow:

Setting up base setup for Production Picking

Consolidating picking should be setup for one of the following to get the Output Order

Inventory Model Group

Selecting “Consolidated picking method” for Inventory model group will use shipments and picking of multiple orders as the mechanism.

Warehouse

The setting can be overruled on warehouse as it might and might not be required per warehouse.

Warehouse Items

The setting can be overruled by Warehouse Item as consolidated picking might be or might not be required.

Production Order using WM&D

WM&D supports consolidated picking for production order and helps to override all settings and use as per the needs of the production.

Default setup for WM&D as per the warehouse is done in Parameters form of WM&D

Production order could overwrite all setup for consolidated pickup in Setup tab which is initially setup as per the default setup of WM&D.

Setting up Shipment Template

Automatic Shipment Creation should be checked and appropriate criteria should be setup to make it work with Production orders.

To setup shipment template, following are the pre-requisites as per standards AX, please look in the Standard Ax for further details.

• Setting up Shipment Reservation Combinations
• Setting up Shipment Reservation Sequences

Processing Steps for Production Picking using Consolidating Picking Setup

Production picking process using consolidated order

Production Order – Create Production Order

The Production Orders form can be opened from Production
>
Production Order Details.

Create a new production order and fill the required details.

Production Order – Update Job Scheduling

Run the process of Job Scheduling.

Production Order – Update Release

Select Release to release the production orders that are ready for the shop floor. This will in turn create Output order so to start the picking process of the raw material.

Find shipment related to production order

The shipment is created for the production order to support the picking and shipping it to the location.

Locate the production reference by looking into the General Tab of the Shipment Lines as shown below:

Shipment – Activate Shipment

Activate the shipment after confirming the details so it can be located by the forklift driver to pick the inventory. This will change the Pick status of the shipment to be “Activated”

Forklift Main Menu – Select Consolidated Picking

Forklift person will be working on his forklift menu and will looking in the consolidated picking list.

Select Shipment

Select all the shipments until ready to start picking up of the goods.

Selected Shipment

Select “Selected” to see the selected shipments.

Picking Routes

Select “Picking Routes” to see other details related to the goods that need to be picked.

Select Picking route and Scan Location

Select the picking route will change the Pick status of the shipment from “Activated” to “Started“.

Scan the location from where the goods need to be picked.

Scan Item

Scan the items that is picked for the shipment

Scan Cargo and Print Cargo

After finishing with scanning of the items, scan the outbound cargo which will be used to ship the goods. Scanning the Cargo will change the Production Pick Status to “Picked“.

This will also change the Inventory Transaction to “Picked“.

Once done, print the Cargo details to be pasted on the shipment.

Production – Update Start

Starting the production order by posting the picking list will change the pick status to be “Completed“. This will also change the Inventory Transaction status to “Deducted“.

This article is about the value added services(VAS) module in To-Increase Warehouse Management and Distribution solution for Dynamics AX 2009.

VAS = Value Added Services

Value Added Services is among the crucial elements of any supply chain management system. It enables companies to adopt postponement strategies and mass customize products at the time of distribution and fulfillment to ensure customer requests are fulfilled correctly at the lowest total supply chain cost. Companies get greater ability to accommodate rapidly changing customer tasks and product requirements, get more flexibility over their inventory, reduce inventory on hand and product obsolescence, highly improve customer service.

The Value Added Services module of the Warehouse Management and Distribution solution enables assembly and kitting right in the distribution center. It facilitates personalization and other product enhancements, single and multi-station kitting and assembly, packaging and labeling operations for existing products, and complex final assembly operations for customer-specific products, all encapsulated in a very intuitive and easy to use interface, from creating Value Added Service by an operator and to guiding a VAS worker though all the required steps with touch sensitive station interface.

Build on Inventory

One important requirement met developing the VAS extension is the customers’ ability to customize which services the company offer and at what price. Because VAS is based on the standard Dynamics AX Inventory functionality, the VAS extension not only offers new functionality to DAX but also exploits the many great features build into the inventory module.

This means that all the standard DAX features, in relation to inventory items, also is available for VAS services – for example setting up multiple languages, pricing, trade agreements and forecast etc. A VAS service is simply an item in the Inventory management module, but of the type “Service”.

To turn an item into a VAS service, simply check the “Value Added Service”-check box on the Item details form (Inventory management > Common forms > Item details, and select the Setup tab page). This automatically creates a VAS template, available in the VAS templates form.

Furthermore, the VAS service, when it’s requested by the setup, will automatically keep synchronized with the corresponding service item on the sales order, enabling you to utilize the standard sales order functionality of fetching the price and discount agreements on the service, as well as invoicing the customer.

Setting up Value Added Services

This section describes how all the VAS related tables are related to setting up VAS and how they influence the way VAS is processed.

The VAS Templates form

The VAS Templates form (Warehouse Management and Distribution > Setup > Value added services > Templates) displays the VAS templates, i.e. those VASs that the company has chosen to offer customers.

There are 2 types of VASs in the system:

• those that are represented by the service item and therefore are offered, then taken as order and finally invoiced to customers,
• and another type that is not bound to a service item and do not incur customer involvement, but rather can be treated as a service that is not charged and unknown to the customer, but on the other hand is required in the chain of VAS operations and similarly carries a bunch of tasks that a warehouse VAS performer will take as instruction and accomplish.

The VAS Action groups form

The VAS Action groups form (Warehouse Management and Distribution > Setup > Value added services > Action groups) are a VAS attribute and used for workstation capabilities setup (refer to VAS Processing chapter).

The VAS Action sequence groups form

The VAS Sequence groups form (Warehouse Management and Distribution > Setup > Value added services > Action sequence groups) are used as a VAS property to establish the order in which services are performed. The less the value field, the earlier a service is going to be performed.

The VAS Action texts form

The VAS Action text form (Warehouse Management and Distribution > Setup > Value added services > Actions) is a set of guidelines specifying all the required actions that a warehouse worker needs to perform to fulfill a VAS. The service fulfillment description can either be placed in the Action field or as an html page, using the Edit button. The latter option enables users to use different fonts and add pictures to the html document.

Since the warehouse staff often speaks different languages, action text supports multiple languages. This is set up in VAS parameters form (Warehouse Management and Distribution > Setup > Value added services > Parameters).

When creating a new action text, the system automatically creates records for all languages set up in Parameters, and records with no text appear with a warning icon.

The VAS Customer groups form

The VAS Customer groups form (Warehouse Management and Distribution > Setup > Value added services > Customer groups) are used for setting up the automatic creation of VAS. A VAS customer group classifies customers into groups for which the same VAS applies. The groups are available for selection on the VAS auto. creation
form, and when orders are created for these groups, the VAS lines are automatically applied to the order.

To assign the group to a customer, open the Customer details form and on the Sales order tab page, specify a customer in VAS group field. The group from the customer is automatically transferred to a sales order, and can be found and changed in the Sales order details form, on the Setup tab page.

The VAS Item groups form

The VAS Item groups form (Warehouse Management and Distribution > Setup > Value added services > Item groups) are also used for setting up the automatic creation of VAS. A VAS item group classifies items into groups for which the same VAS applies. The groups are available for selection on the VAS auto. creation
form, and when orders lines are created for these groups, the VAS lines are automatically applied to the order.

To assign the group to an item, open the Item details form and on the General tab page, specify an item in VAS group field.

The VAS Parameters tab page

The Value Added Service parameters form (Open the menu: Warehouse Management and Distribution > Setup > Parameters, and then select the VAS tab) displays the setup for the module.

Setting up VAS integration on workstations

In the Warehouse Management and Distribution solution a warehouse worker can be bound to a workstation. This defines their functional responsibilities, i.e. operations that they can fulfill.

In relation to VAS processing, a workstation is a required element. Processing different VASs requires different technical, organizational warehouse facilities and different worker skills. That is why workstation capabilities in relation to VAS processing must be defined and setup to process VAS.

To setup a workstation to utilize VAS capabilities, open the Workstation form (Warehouse Management and Distribution > Setup > Inventory equipment > Workstations) and on the VAS tab page add the action groups (described earlier in this document) that is allowed to be processed on this particular workstation.

Setting up Automatic creation of Value Added Services

Automatic creation of VASs is effective when customers always use some services meeting specific criteria.

You can specify automatic VASs for:

• A specific customer account, a group of customers, or all customers.
• A specific item, group of items, or all items.
• A combination of the above. VASs can, for example, be added when a specific customer buys a specific item.

Open the VAS auto creation form (Warehouse Management and Distribution > Setup > Value added services > Auto setup).

The Level field

There are 2 types of automatically created VASs which correspond to the Level field at the top of the form:

The VAS relation tab page

The VAS item criteria tab page

Integrating VAS with the Packing station

When a picking list is processed at a Packing station the system checks for the presence of unfinished VASs. If one or more VAS lines are not completed, it is not possible to proceed with the packing procedure, until all VAS lines are completed.

VAS integration on the Packing station form is visualized by changing the label of the Finish-button from “Finish” to “Perform VAS”. When the user selects the button the VAS processing form appears.

Processing Value Added Services

The VAS designer form

The VAS designer form is the main form in Value Added Services. Here you design the VASs attached to an order. This form is opened from a sales order form (Accounts receivable > Sales order > Setup > Value added services).

The VAS tree window

This section displays a hierarchy of all VASs for an order. Each VAS type has its specific icon in the tree.

In order to add a VAS service to an order, simply drag a VAS template line or order line and drop it on the needed node of the tree, the VAS edit dialog will appear and after closing it, the VAS will be created in the system.

There are some rules for creating VASs hierarchy:

• Root node – is a system node, it cannot be deleted or modified.
• Assembly and Package type nodes can have several sub nodes.
• Action and Label nodes can have only one sub node.
• Item node, representing an order line can have several sub nodes of types Label or Action, called Flat actions, which in their turn cannot have any sub nodes.
• The total order line quantity cannot exceed the origin order line quantity.

  The VAS details and Dimensions tab page
  

The VAS details tab page and Dimensions tab page display main attributes of VAS, corresponding to the currently selected tree node.

The VAS template lines tab page

The VAS template lines tab page displays a list of VAS templates currently available. These templates can be used to build up a set of VASs connected to the order.

The set of filter fields includes:

• Action – Action group filter
• Type – VASs type filter
• Acton text – filters by action, separate words in the field are applied as range criteria with OR operator.

  The Order lines tab page
  

The Order lines tab page shows the lines of the order VAS is designed for.

The Setup tab page

The Setup tab page contains a number of VAS tree options.

The VAS Designer button panel

The button panel to the left contains buttons representing the following main functions:

Order synchronization

The source order is synchronized and kept in consistency with the VAS connected to it:

• The total order line quantity cannot exceed the origin order line quantity. If the quantity in the order line is decreased and the VAS quantity related to this order line is larger, the user has to adjust the VAS quantity first.
• When a VAS that is invoiced to a customer is added, the system automatically adds the order line with the corresponding quantity to the order, and vice versa, order line will be deleted or quantity adjusted if a VAS is deleted or its quantity corrected.

The VAS processing form

The VAS processing form, if not opened from the Packing station form, can be opened from Warehouse Management and Distribution > Value added services processing. The form is designed with touch screen capabilities.

Action + Text tab page

The Action grid is comprised of the following fields:

Processing item tab page

In the Processed item grid the following fields are displayed:

Information grid

At the bottom of the form an information grid log is located which displays all the system messages.

Button panel

The following buttons available in the screen:

Instructions tab page

Using the button Show/Hide instructions toggles between showing the Instructions tab page with HTML rich description or the Text tab page.

Log + Overview tab page

The Log + Overview tab page displays the full list of VAS operations that is applicable to the sales order. The user can view all the VAS line details and re-print labels for label services.

In the Log + Overview tab page the following fields are displayed:

The Processed item tab page

The Processed item grid contents are identical to the one on Action tab page, showing processed items of the log operations.

The following buttons are available here:

Scenarios for Value Added Services

Scenario 1 – Creating a sales order with a invoiced gift packing VAS

A customer calls our company and places an order for 1 “Sony Vaio Laptop, model X1” and 1 “Logitech Anywhere Mouse MX”. Besides that, the customer orders some VASs: he requires that this order is packed into a gift package, our service SRV0004.

1. Susan, the order processor, creates a sales order and adds the needed lines.
2. She then opens the VAS Designer to add required VASs. She drags and drops the VAS line template with service id SRV0004, “Gift packing”, and clicks Ok in the VAS create dialog.
3. She then adds (drags and drops), from sales order lines, “Sony Vaio Laptop, model X1” and “Logitech Anywhere Mouse MX”. Quantities are 1 by default.
4. The VAS structure now looks the following way:

1. When Susan returns to the sales order form, having refreshed it, she finds that the system has added the service as a sales line. Therefore this service will be included in the invoiced.

1. This completes Susan’s work.

Scenario 2 – Creating and process a sales order with co-packing, labeling and pre-configuration of an item

One of our customers, a retail company, has planned to run a campaign. To boost the sales of the Sony Vaio Laptop, model X1, they plan to give away a Logitech Anywhere Mouse MX. They also want the laptop and mouse packed together (service SRV0006, Co-packing, default band) and the package labeled with a special promotional label (SRV0005, service Color label, 100 X 200). Finally, since they see the growing demand for Microsoft Windows 7 Home Edition OS, they want the laptops to be pre-configured with this software installed (service SRV0003, Installing Microsoft Windows 7 Home Edition). The customer calls the company and places an order for 20 units.

1. Susan, the order processor, creates a sales order and adds the needed lines.

1. She then opens the VAS Designer to add required VASs. She drags and drops a VAS line template, service SRV0005, “Color label, 100 X 200”, specifies the label type in the creation dialog, keeps the quantity 1 and clicks Ok.
2. Then as a sub-node of labeling, she adds VAS line template service SRV0006, “Co-packing, default band”, with the quantity of 20.
3. Then as a sub-node of co-packing, she adds items from the sales order lines “Sony Vaio Laptop, model X1”, and “Logitech Anywhere Mouse MX”, both with quantity 1.
4. Finally, she adds SRV0003, “Installing Microsoft Windows 7 Home Edition” as a sub-node to the “Sony Vaio Laptop, model X1”.
5. The VAS structure now looks the following way:

1. This completes Susan’s work.
2. John, the warehouse worker, picks the items into a pick basket and places it at the VAS station.
3. Sammy, the VAS operator, scans the picking list number into the Scan document field and is presented with the first action on the screen:
   
   
4. Sammy notes that he needs to install Window 7 on the laptop but in the information window he also notes that 20 similar actions need to be done.
5. Sammy then carefully reads the instructions and installs OS in all 20 laptops.
   
6. When finished, he clicks the Confirm all (20) button. This updates all 20 actions and brings up the next action.
   
7. The next action is to bundle together one laptop and one mouse. The number of those bundles to be created is 20 (according to the information window) and moreover every bundle must be marked with tag “1”.
   
8. Sammy completes the bundling and sticks a tag “1” to every bundle.
9. When finished, he clicks the Confirm all (20) button. This updates all 20 actions and brings up the next action.
   
10. The next action is to label all packages with tag “1”. Those are the packages that he marked with this tag at the previous step. In Order to print all labels in one go, he clicks Print all labels (20) button.
    
11. When finished, he clicks the Confirm all (20) button. This updates all 20 actions and brings up the next action.
    
12. Finally, Sammy is informed that all VAS lines are completed and that he can scan the next picking list.
    
13. Sammy puts the packages into the pick basket and then places it at a packing station.
14. Lisa, the warehouse packer, packs all the packages into a carton and adds filling.
15. Lisa, prints and attaches labels to the carton and ships the goods.
16. This completes the scenario.

Scenario 3 – Explaining the use of “tags”

A customer ordered 5 DVD players. One of those is to be shipped overseas by our customer. As result of this request, and only for the DVD player that is to be shipped overseas, the customer has requested:

1. DVD player customized to the regional setting required in this area.
2. Packed with additional filling to make sure it will be shipped unbroken.

The procedure at the warehouse is then:

1. Susan, the order processor, creates a sales order and adds the needed lines.
2. John, the warehouse worker, picks the 5 DVD players into a pick basket and places it at a VAS station.
3. Sammy, the VAS operator, customizes one of the DVD-players, returns it into the pick basket and then places it at a packing station.
   
4. Lisa, the warehouse packer, packs;
   4 DVD players into one carton,
   1 DVD player is packed with additional filling into one carton.
5. Lisa, prints and attaches labels to the cartons and ships the goods.
6. This completes the order processing.

The issue that arises here is that after customizing one of the players, it will be put back into the pick basket. When all 5 players arrive at the packing station, Lisa is asked to pack the customized DVD player into a separate carton with additional filling. Lisa must be able to differentiate which DVD player that was customized.

This is addressed by introducing tags, or stickers. Tags could be small labels that are attached to items, in order to identify them later on the VAS route. Using the VAS system, all items in the sales order that need recognition among the same items further down the VAS route, will automatically be assigned a tag. The tag is numeric and starts from 1.

The procedure for attaching tags is:

1. At the VAS stations, the user has pre-printed tags from 0 to 9.
2. The system assigns a tag for the item; the user is prompted to stick the tag to the item.
3. The packer at the packing station is informed that specific packaging is required for the item with tag “1”.

Scenario 4 – Automatic creation of Value Added Services

One
of our customers is located in a region where shipping requires usage of heat treaded materials. In addition, it requires that all goods that are sold to them are specifically labeled.

In order to make those services applied automatically, the following procedure must be followed:

1. Susan, the order taker, opens the VAS auto creation form and creates the following entry on the Main level:
   
   
2. She then switches to level Line and creates a line where she specifies the customer and VAS applied (Labeling) on the VAS relation tab page, and finally activates it.
   
   
3. On the VAS item criteria tab page she then creates a line and specifies Group as an Account code and selects that group in the Item relation field to which a set of items should already be connected. Again she checks the Active field to activate the criteria and saves the record.
   
4. Now Susan creates a sales order for Customer 1101, Forest Wholesales, comprised of 50 pieces of “Sony Vaio Laptop, model X1” and 20 pieces of “Logitech Anywhere Mouse MX”. After creating the sales lines and refreshing it she notices that 3 extra sales lines were automatically created.
   
5. The VAS structure will be the following

This concludes the detailed description of Value added services module with the To-Increase Warehouse Management and Distribution for Dynamics AX 2009.

This article describes kitting from a sales perspective. Another article will be published later that deals with the execution of the kitting and value added services(VAS).

Assembly and Kitting is a great alternative for companies that are not equipped with finished goods warehouse facilities or cannot afford the capital expenditure of setting up a finished goods warehousing facility. Your company can take advantage of the services that are necessary to forward a product to market quickly. Assembly and Kitting support the assembly of products in boxes, shrink wrap, blister, or clamshell packaging.

Some companies require assistance preparing their product for shipment and display. There is a better chance of selling your product if it is accurately packaged and prepared for market. There is nothing worse than excitedly opening a new item just to find that pieces are missing from the package.

An example of how Assembly and Kitting could work:

You have several items that belong together in a package. In an assembly line, each individual in the line subsequently adds another component to the package in a specific order. This ensures that everything is included in the package. At the end of the assembly line, an individual conducts a quality review. Part of that review could include weighing the package. If the weight of the package is accurate, then all the parts have been included; no more no less. If the weight is incorrect even by a couple of ounces, then it means that either a component is missing or there is an additional part.

Assembly and Kitting allows the warehouse to build an order for shipping then distribute or store it. Getting the distribution center to kit your products not only prepares the items for distribution, but may also save your company money, because you do not have the labor costs and capital expenditures to deal with.

Kitting and sales order

One of the requirements is to show the kitting structure in the sales order form in Dynamics AX. Kitting stipulates that there is a hierarchy of items, where only the bottom level is real items that are purchased, stocked and priced, while the upper levels are phantom BOM items. When a customer orders a product, the customer only need to relate to the uppermost BOM-level, while the warehouse workers are picking the actual contents of the kit.

Explosion

Explosion of a phantom BOM items on a sales order is built into the order line processing procedure, the procedure that takes place every time a sales line is inserted, deleted or updated. A parameter field “Kitting” is added to the item table (it is available for BOM and phantom items only). This parameter defines if a BOM item is exploded on sales line processing. Moreover, value added service (VAS) orders is automatically created upon adding such kitted items to the sales order, in order to secure that the items will be packed accordingly. The VAS orders will also ensure that we always have a combined delivery (that we cannot deliver one of the sub-lines, but must deliver the entire kit).

Explosion of BOM item is performed on all BOM levels and all the phantom BOM levels create sales lines marked as a kit, while real items create normal sales lines. The relation between levels for the Kit sales lines is established via a new reference field on sales line. When using the sales order screen, the order looks just like the normal sales order screen:

By clicking on the “Show kit lines”, all lines are shown inside each kit:

The bottom-level sales lines (real stocked items) should be editable only in terms of unit price, line discount amount and multiline discount amount, the rest: quantity, delivery dates, etc. should be derived from the uppermost line. The structure of BOM cannot be manually adjusted: sales lines that are sub levels of the top phantom BOM cannot be deleted manually.

Price and discount calculations

Price amounts and discount amounts are set on the lowest level of BOM only. The price on the upper level is always the sum of the sub lines.

Inventory transactions to kits

The final kits do not have inventory transactions. The reason for this is that kits are “virtual items” that do not need a physical picking. It is the sub-components that are picked. Kits are still being packing slip updated and printed on the invoice.

Setting up Assembly and Kitting

This section describes how all the Assembly and Kitting related tables are related to setting up Assembly and Kitting and how they influence the way Assembly and Kitting is processed.

The Kitting form letter setup form

The display of the kitting structure can be shown per item and customer on confirmation, packing slip and invoice. To handle this, a new form Kitting form letter setup is available. This form is following the standard “Table, Group, All” Microsoft Dynamics AX pattern. Here the user can specify if the kitting structure is printed on confirmation, packing slip and invoice for a particular customer.

The form is available under Warehouse Management and Distribution > Setup > Delivery > Kitting form letter setup.

If the Show kitting structure is enabled, the form letter will show the kitting structure as follows:

Assembly and Kitting FAQ

This sections covers information related to Assembly and Kitting, and is described as a FAQ.

When it comes to choosing the right warehouse management system (WMS) for your business, it’s important to understand your warehouse needs and the benefits of having an integrated WMS before starting the selection process. Whether your goal is to automate your warehouse operations for the first time or to upgrade to a more robust warehousing system, this article is an ideal resource for finding the right WMS—including information on how to build an effective project team, ask the right questions of your software reseller, and successfully implement the system.

5 Common Mistakes People Make When Choosing a Warehouse Management System

Mistake 1: Not doing enough homework.

Analyzing and then selecting a warehouse management system takes time and effort. Information is critical to selecting the most appropriate system for your organization. You’re already a step ahead of most people because you’re reading this blog.

Mistake 2: Misunderstanding the benefits of automation

Automating warehouse operations and related functions can save your organization considerable time and money. However, if you don’t also improve your current processes and ways of interfacing with RF-based hardware, shipping systems, and warehouse equipment, automating your system won’t deliver the full return on investment you require.

Mistake 3: Ignoring hard-to-quantify benefits

It is difficult to calculate possible future gains such as increased productivity, better warehouse efficiency, improved customer service, and other factors after a new system has been successfully implemented. Remember, these types of benefits can dramatically improve your bottom line and should not be overlooked.

Mistake 4: Passing the buck

Top management and other key personnel within the organization must be involved in the selection and the implementation process. For the project to be a success, management needs to stay involved.

Mistake 5: Underestimating the ramp-up phase of a project

Many companies assume a well-designed system will operate at peak levels shortly after they make the purchase. The best system will not perform as expected until properly trained personnel have developed complete competency with the system. Allow users to gain confidence through a gradual process of operational ramp-up, including incremental training and system usage. Wait to introduce them to new and more complex system functions until they have mastered the basics.

When is the “Right” Time to Move to a New System?

Don’t wait until your warehouse operations are no longer competitive to evaluate whether you need a new system. Here are some important tips to help you maximize your business processes:

Keep pace with industry trends

The availability of new technologies and increased market demands are driving rapid change in many industries. Watch for trends such as rising customer expectations, increased competitive pressure, or dropping margins. Introducing new or improved automation management technology to your warehouse can be a powerful tool for increasing competitiveness in a challenging market.

Ensure compliance with integration requirements

If you plan to sell to large retailers, you’ll need to comply with their terms in order to remain in good standing and keep your margins in place. Most large retailers have strict vendor compliance requirements that make a modern warehouse management system absolutely critical for success. Since many large retailers use EDI (Electronic Data Interchange), an ideal WMS solution will have EDI integration and be able to automatically transmit order information into an ERP (Enterprise Resource Planning) system.

Manage the changes required by e-commerce

If you’re one of the many businesses selling products over the Web, a WMS is essential. An online business encounters higher transaction volumes and greater customer expectations. Your material-handling needs also change when you ship directly to consumers rather than to businesses. Instead of pallet or case shipments, most online businesses fulfill many small unit shipments. As shipping times decrease, new requirements such as cross-docking may be required. Without the right system, many errors can occur. And with thin margins, shipping errors can be detrimental to your business. You want a WMS solution that supports and integrates with your e-business initiatives.

Automating your warehouse

If you’re finding that the lag time between warehouse activities and the entry into your warehouse system or accounting database is slowing down your business, you may want to consider automating those processes. A strong WMS solution integrated into your ERP system will allow you to monitor the warehouse activities in real time, minimizing entry errors, and measure the efficiency of your warehouse employees.

Make the most out of a warehouse move

If you plan to relocate to a new warehouse, this may be a good starting point to implement a new warehouse management system. By designing a plan from the ground up at your new location, you can eliminate the bottlenecks and inefficiencies of your old warehouse. The sooner you plan and implement, the sooner you can reap the benefits of your new system. Measure your current capabilities An objective way to assess your warehouse efficiency is to conduct a detailed benchmark measuring your current capabilities. The benchmarks can show you how well your warehouse is performing and the areas you may want to improve. If your assessment indicates significant changes are necessary, now is as good a time as any to implement a new system that provides the required functions of your warehouse.

5 Important Questions to Ask Before Implementing a New System

It’s important to ask questions, especially if you’re finding that your warehouse is not as productive as it can be. Discuss order fulfillment, shipping/receiving, inventory control, labor, and equipment challenges. Here are some questions to address:

1. How are inaccuracies negatively impacting your organization?

2. What do you need to accurately pick, pack, and ship your orders?

3. How can your current system integrate with your e-business initiatives?

4. What information do you need to make strategic decisions?

5. How fast do you need warehouse data to be available across the enterprise?

Getting Started

Today, more than ever, warehouse efficiency is a critical success factor to effectively manage your supply chain and achieve peak performance. Implementation of the latest technologies can significantly improve warehouse operations, employee productivity, and customer satisfaction. By installing the right system and realigning how your warehouse interacts with your employees, customers, and vendors, you can streamline your warehouse operations while achieving a high return on investment.

Build the case for a new system

The greatest challenge to implementing a WMS may not be finding the right system; it might be convincing your management team of the need for it. While most executives agree an accounting system is a must-have, the sentiment does not always apply to WMS. You probably have to sell the idea of a new system to the rest of your senior management team. They may be skeptical about whether the investment is really necessary. You’ll need quantifiable metrics, such as predictive error rate, RMA (Return Materials Authorization) costs, etc. That’s why it is important to determine all the ways your company will benefit from the system, both directly and indirectly, and be prepared to explain these benefits to senior management.

Form a project team

Assemble the team of people who will decide what your company needs from the new system and what functions it must include. Depending on the size of your company, team members may include the warehouse manager, a senior finance representative, and the director of IT. Define each person’s role and their level of involvement and decision-making during this process. Clearly define each team member’s responsibilities so they know up front how much time and effort will be required of them. You may need to restructure work priorities during the selection and implementation phases to make sure your project team has the resources to get the job done.

Evaluate your current system

To get the most out of your new WMS, you need to do more than simply add technology to your current processes. The more you know about the problems you expect the new system to solve, the more successful your final choice will be. Discuss what modifications need to be made to current system procedures. What works? What doesn’t? Consider not only how technology can automate current processes, but also examine other ways they can be improved. Encourage your team members to be candid about what they find frustrating, redundant, or ineffective. Examine how your warehouse interacts with customers, suppliers, and your organization’s departments; look for weaknesses and ways to improve these communications.

Share your expectations

Once you’ve agreed on the process and the timeline, have each member of your team share their expectations for the new system. Conduct a session to brainstorm ways the existing system can be improved, including new functions and processes that aren’t currently in place.

Agree on your needs

Have each team member create a list of key functions they feel the new system needs to provide for the company. Then have them prioritize these items as Essential, Greatly Desired, or Would Be Nice. Encourage team members to differentiate between functions they want and functions they definitely need. Achieve a general consensus within the team, defining the rank of each function and then combine those items into a prioritized list.

Create your list of required functions

Once you have consensus, refine your mandatory requirements into a formal Required Functions List. Your Required Functions List should be a short, one- to two page prioritized list that includes all of your must-have functions. This list of mandatory features will help you quickly eliminate systems that don’t meet your needs.

Consider the benefits of back-office integration

Selecting WMS software that integrates with your ERP system ensures complete control and flow of information between your back-office and warehouse floor. An integrated WMS system will keep your warehouse activities in synchronization with your accounting data, eliminating manual intervention and transcription errors while providing accurate and up-to-date inventory control. Look for a smooth-running warehouse system that can easily and reliably interface with your financial data—supplying in-depth information across the enterprise. Just as important, an integrated WMS will support your Web order and EDI needs, and send back Advance Ship Notices (ASNs) to notify customers of incoming shipments.

Don’t forget about hard-to-quantify benefits

The right warehouse management system maximizes the productivity of your warehouse staff. It frees them from tedious, time-consuming tasks and allows them to focus energy on picking the right items the first time, every time. It allows your company to benefit from increased inventoryhandling accuracy and reduced carrying costs associated with obsolete and slow-moving stock.

Avoid RFPs

Contrary to what your colleagues may tell you, the next step is not to create and send out a Request for Proposal (RFP) to resellers you are considering. Creating an RFP, sending it out, waiting for proposals, and reviewing them can take months. You can achieve the same results in days by asking potential resellers if their system provides the key functions you require. Obviously, if your company requires you to use an RFP, this step is necessary.

Finding a Reseller

The ideal reseller has knowledge of end to-end operations, including warehouse management, accounting, order management, customer relationship management, and integration with EDI and wireless data collection systems. Another critical aspect is their experience with implementing software for businesses in your industry. When evaluating a reseller, ask yourself these questions:

Can the reseller provide my company with a complete service package?

Critical elements of any software implementation are product training, technical support, future maintenance, and upgrades. Look for a reseller who wants to assist you not only with the immediate sale and installation, but also with long-term training and service.

Does the reseller listen effectively?

This question separates the true solution provider from a product peddler. To make the best recommendations for your organization, a reseller must first learn about your organization—including your systems’ current capabilities and those missing (but required) items or functions. Has the reseller attempted to learn as much as possible about your organization? Has the reseller spoken to more than one person within your company?

Does the reseller communicate clearly?

Be wary of resellers who spend all their time discussing features of a program. Your focus during discussions with a reseller should include the system training and services the reseller can offer in addition to features and benefits of the WMS software itself.

Can I work with the reseller?

Remember, you’ll be working closely with the reseller over a period of weeks, maybe even months. It’s important to find a reseller you enjoy working with, who is a good fit with your company’s philosophy, and who you feel will provide the necessary expertise and consultation in a professional manner.

Find the Best Fit

Just ten years ago, you could easily evaluate every warehouse solution available on the market. Today, with so many solutions to choose from, you can spend months looking at demos and still not see them all. Every warehouse is unique—with different processes, tracking systems, and problems. This is why it’s critical to choose a system tailored to your specific needs.

Generally, look for a system capable enough to significantly improve inventory control and staff productivity. This is first accomplished by integrating your warehouse staff with the tools and equipment at their disposal: radio frequency (RF)-based communications equipment, shipping systems, lift trucks, forklifts, etc. Secondly, all the information gathered by utilizing this equipment should be made available to your entire enterprise—including the accounting and inventory management data.

The vendor you choose should be dedicated to serving the changing needs of the warehousing and logistics industry, and consequently committed to upgrading and improving the product. Consider the following factors when evaluating available WMS solutions:

Know the benefits of working with a reseller

Before you begin narrowing your list of WMS contenders, it is important to understand the benefits of working with a reseller. Typically, resellers have been through the process many times before and can save you time and effort. They can help you select the right software for your warehouse, install new networks or hardware, and make sure the system is running by your target date.

A good reseller will:

• Evaluate and suggest the best WMS software for your organization.
• Save your company time and money during system installation and subsequent training.
• Help you get the most out of your WMS implementation based on your organization’s requirements.

Screen potential solutions

E-mail a copy of your Required Functions List to the resellers you are considering so they have time to prepare and can quickly answer your questions. Conduct a phone interview with each reseller to determine how well their solution matches your required functionality. Note whether each feature comes standard with the system, is available as an add-on module for an additional fee, or is not available at all. A good reseller will also need to ask you many questions to determine which system is the best fit for your company.

Consider implementation time

Look for a complete solution that can be up and running smoothly and rapidly. The less upfront customization your system requires, the more quickly the implementation process can be completed. Ask your reseller how long the implementation will take and what factors may increase or decrease the amount of time needed.

6 Questions to Ask Resellers About a New System

Pick the best three systems and ask each reseller to provide the following information:

1. Estimated license costs for your implementation.

2. Estimated build-out costs to adapt the system to your requirements.

3. If automated wireless data collection and bar-coding equipment are a good fit for your company, what are the estimated costs?

4. Timeframe and cost for implementation.

5. Annual support and maintenance costs.

6. Training methodology and training costs.

Choosing the Right System

As you narrow the field of software contenders, begin examining the companies more closely to see how well they meet your needs. Consider the following factors to weed out vendors that won’t fit with your long term strategy for distribution excellence:

Interview resellers before the demo

Familiarize yourself with the various WMS solutions available on the market so you can be confident about your top picks when you shortlist the best options for your company. By interviewing as many software resellers as possible in advance, you can avoid time wasted by lengthy, irrelevant demonstrations.

Get to know the software manufacturer

Are you familiar with the company that makes the software? Are they a respected name in the software industry? How long have they been in business? What is their vision for the future—for their products and for the company? These are just some of the questions about the manufacturer you want to address when evaluating WMS solutions. Clearly, you don’t want a “here today, gone tomorrow” organization.

Insist on a user-friendly system

Even with all the functions your system promises to deliver, if your WMS is not user-friendly, your staff won’t be able to maximize the full benefits. Make sure you select a solution that’s logical and easy to use. Ask these questions during the interview process:

• Does the system enable users to easily sort and view information, allowing warehouse employees to know exactly which activities need to be done at all times?
• Does the software use the familiar navigational model of a standard hand-held browser?
• Can the software provide a real-time window into your warehouse operation and access to critical data with only a few clicks?

Look for a solution that integrates with your accounting data

Make sure the WMS software has solid integration with your accounting data so multiple departments and your warehouse staff can more effectively track inventory and order fulfillment. Real-time integration of inventory and shipping information to your back-office data can reduce transcription errors, lower the staffing requirements for data entry, and improve access to information throughout your organization. The best way to ensure this real-time integration is to have the WMS functions as a module within your ERP system.

Ask about the capability to automate the warehouse management processes

Look for WMS software that supports wireless RF-based technologies. The warehouse management data is updated as soon as information is captured on an RF-based hand-held device. Also, if a system promises real-time delivery, make sure vital business information (for example, inventory count) with orders requiring same-day shipping—which can result in high compliance fines.

Understand how the wireless system collects data

Consider how well the system monitors your critical operational activities. When you’re running at full capacity, can you monitor which items have been received? If so, what communication standard is used to capture and transfer data? Most RF-based technologies collect data using the 802.11 communication standard. Make sure the system you choose supports this widely accepted standard, and isn’t limited to a proprietary communication standard.

Find out costs for extra users and modules

In addition to maintenance, upgrade, and support costs, it is important to consider how much you’ll have to pay for additional users. Solutions that include all modules generally cost less than those that don’t, but will often charge a higher cost per number of users. You may also encounter vendors who are relatively inexpensive when it comes to adding seats, but charge significantly more for additional modules. Be sure to ask the reseller what the cost structures are for adding users and modules.

Ensure options for growth

Before you make a purchase, find out if your software vendor has a maintenance program in place that gives you access to frequent updates. A good vendor invests heavily in engineering and develops new product features and enhancements regularly. They stay abreast of new technologies and make sure their customers do too, particularly those customers with fast-growing businesses. The opportunity to move to a similar, but more powerful, solution provides you greater flexibility as your company grows. Often, software upgrades cost far less than the retail price of the full program. Some vendors even provide upgrades within their support programs. Imagine purchasing a new car a year ago, and then seeing this year’s model and wanting some of the new features. You can’t have those new features unless you purchase the new model! In contrast, a good software manufacturer will provide product upgrades at reasonable prices or as part of a yearly service agreement.

Inquire about the system’s capacity

What is the maximum number of users allowed to work with a particular application at a given time? What happens if your business needs to add another warehouse or configure multiple work zones in your existing warehouse? It’s important to consider what your warehouse will need in the future to avoid having to purchase another new system within a short period of time. There are always opportunities for further efficiency gains by maximizing warehouse automation equipment and perhaps reworking some of your existing inventory-handling processes. When selecting a system, ensure the software has the capacity to grow with you.

Look for e-business strength

Online retail fulfillment is very different from traditional fulfillment—requiring different picking strategies and special material handling operations. Fulfillment operations for a Web store will have thousands of orders, but usually with only one or two lines. In contrast, traditional fulfillment typically has fewer orders, but many lines per order. If your company is considering electronic commerce, look for a flexible system that can manage a multitude of operational strategies. You’ll also want a scalable solution to ensure that seasonal peak volumes can be handled accurately and efficiently.

Get powerful reporting

Look for a system with the ability to extract relevant information easily. Your warehouse manager should be able to track labor productivity and provide order fulfillment, and inventory movement information. A good system can provide virtually unlimited reporting capabilities. Ask for samples of reports when evaluating the different systems.

Evaluate system security

The degree to which sensitive functions and reports can be protected will affect how the system rates in security. Ideally, you should be able to specify which operations certain users can perform at specific times. A good system can be set up so your warehouse technicians only see information relevant to their job function.

Conduct product demonstrations

Before each product demonstration, have your team meet to discuss the perceived strengths and weaknesses of each software solution and areas they think require particular attention. Inform resellers ahead of time the order in which you want the functions demonstrated. It will make the demonstrations easier to assess if they are all presented in the same order. Keep the demonstration focused on the functions your company needs and not on the ones that look most impressive on-screen. Have your team fill out comment sheets during each interview for use during the final decision process.

The software demonstration is an excellent time for your team to understand the features and capabilities of a particular solution. Take full advantage of this opportunity by following these guidelines:

• Inform software resellers about your specific needs in advance. A software demo is a reseller’s opportunity to profile their products and services. By informing them ahead of time about your specific needs, you direct the demonstrator’s attention to your interests, not theirs.
• Make sure your core team is able to attend the demos. Make it a priority to keep your core team up to date about their appointments. Since each team member has a different area of expertise, it’s important for everyone on the team to be at the demonstrations in order to get the most out of each demo. Encourage team members to remain in the room through the entire demo; shared concerns can be flagged more effectively if everyone is present to hear questions raised by others on the team.
• Plan your questions. Have the core team come up with questions for each product demonstrator. You may also want to plan the sequence in which the questions will be asked, to ensure that everyone stays on topic during each demonstration.
• Establish a system for scoring each issue addressed by the demonstrator. Keeping tally for individual issues makes the entire scoring process efficient. It prevents situations in which someone from your team forgets how a particular demonstrator addressed an issue. The scores will also come in handy when it’s time to decide which of the shortlisted solutions is best suited for your organization.
• Ask the reseller to follow up on issues not fully addressed. The reseller may need to consult with colleagues or the software manufacturer before providing answers to more in-depth questions. Be sure someone on your team follows up on any unanswered questions after the demo.

Ask questions during the demo

If someone on the team has a question, such as whether the RF-based technology being demonstrated can update inventory in real time, make sure they ask during the demo. It will be easier to get a clear answer if you ask questions when they occur to you, and while the functionality in question is on the screen.

Understand the difference between standard functions and “extras”

Some software vendors provide basic functions but then make you purchase “extras” that come standard in competing solutions. Confirm which functions are included in the core pricing and which must be purchased separately.

Ask about technical support

Your reseller will be a good resource regarding technical questions or other issues that arise. However, you may still need to rely on the software vendor’s technical support team as well. Find out the cost for technical support as well as the policies for maintenance, upgrades, and support. Ask your reseller what you can expect in response times to support questions and if there are support packages available for purchase.

Implementing Your System

You’re almost there. You’ve done your homework, chosen a reseller, and a solution—now it’s time to put your system in place. To ensure a smooth and successful implementation, consider the following guidelines.

Start with a plan

Begin the implementation process by laying out the goals of the project. This helps keep every team member focused. An installation usually takes between one to three months with an off-the-shelf package that requires minimal customization. If you have numerous goals to achieve, plan on a longer implementation with more consulting resources.

Revisit your timeline

Make sure your implementation timeline is realistic. Your reseller will propose a timeline with deadlines they feel confident they can either meet or beat. Find out what you need to do and which individuals need to be available to help with the process.

Remember: Time is money

Your reseller will probably give you a range of hours each task will take. The general rule is the more resources you allocate for implementation, the less it will cost you in both time and money. The reverse is also true. If you aren’t able to give your reseller the time and resources requested, the process is going to take longer and cost more.

Provide ongoing training

If you want your warehouse operations to reach their full potential, maintain constant vigilance over your system. Ideally, WMS training never ends. Promotions, new hires, and the start of every quarter introduce new opportunities for training. Develop a training agenda focused on continuous learning, along with supporting materials, such as written tests and training guides. These tools will enable you to reinforce existing methods and procedures, teach new hires, and ensure that you’re optimizing the efficiency of the people in your warehouse.

Postpone modifications

Don’t request any major modifications to the software before you’ve actually installed it and started using it. Instead of trying to make the software work the old way, wait until you and your staff are familiar with the new system before attempting to change or customize it.

Schedule a good rollout time

Find an appropriate time to roll out your new system. It’s difficult to schedule a “right time” to do this, but at the very least, plan to install the new software during your organization’s slowest time of year, to minimize business interruptions.

Measure against the old system

The success of your warehouse management system in part depends on the goals you have established for your operation. Once your system is up and running, be sure to benchmark it carefully and compare the results to your pre-system benchmarks. You’ll collect vital information to help calculate the return on your investment. The benchmark also sets a standard for your team to beat. With ongoing benchmarks, you can put measurable employee incentives in place, compare your results to industry averages, and set targets for coming years.

Sample Warehouse Management Software Checklist

Source : Sage – how to choose a WMS system

Process definition

Efficient transportation planning, execution and billing pose a daily challenge for distribution companies. With To-Increase Warehouse Management and Distribution, companies can increase customer satisfaction and tap new cost-saving potentials.

Transportation planning module is a front-end module to plan the transportation requirements. Some customer will use transportation planning, while others will not use transportation planning.

In the process from orders to shipment an intermediate step can be created, that controls how the transportation should be. The transportation planning is not a mandatory step, and the use of transportation planning should be controlled in the delivery rule setup of WM&D. The transportation planning handles multisite distribution and shipments. Meaning that the transportations/trucks can have multiple pickup addresses and multiple delivery addresses. The loading sequences are very important, because the trucks must be loaded and unloaded in the right sequences.

Explanation of definitions

Key scenarios

In this section we will describe some of the key scenario’s to create a transportation plan:

Transportation planning in relation to multi-warehouse picking.

In a multi warehouse/site scenario the transportation planning must include the ability to have multiple pickup addresses. To handle this, a Transportation route type algorithm is implemented. This algorithm can be schematically described like this.

Example scenarios that is supported

Multi warehouse shipments with internal replenishment

2 pickup locations + internal transport

Description:

Multi warehouse shipments

3 pickup locations

Description:

Delivery through distribution center

In this scenario all goods will be consolidated at the distribution center, and there will be internal movements from decentralized warehouses to the distribution center

Description: