Trends in Warehousing. Rafael Hernandez December 4 th, 2014
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1 Trends in Warehousing Rafael Hernandez December 4 th, 2014
2 Table of Contents Honeywell An Overview Major Industry Trends Warehouse Challenges Summary
3 Honeywell Corporate 1,300 sites, 68 countries 131,000 employees Morristown, NJ headquarters Fortune 100 $39.1B in sales for % sales outside U.S. Performance Materials and Technologies Aerospace Automation and Control Solutions
4 Organized for Success A strong organization built with extensive resources
5 HSM Banner Customers Retail Healthcare DC T&L DSD Field Service
6 Value Share Holders DC Target Market Focus Grocery Retail CPG Foodservice 3PL Pharma/Med Industrial Automotive High-Tech
7 The DC in the Supply Chain TL / LTL Freight Home Delivery Customer Mfg / Supplier Distribution Center Private Fleet Field Service DSD Retail Store
8 Major current IT Trends in the industry Today Cloud Security Edge Application Development Operating Systems IOT Internets of Things Big Data Omni Channel BYOD and CYOD Consumerization of IT Industry Experiencing Unprecedented Changes Major Trends are Changing the Supply Chain Technology Landscape Forever
9 2014 Supply Chain Digest Technology in the DC
10 DC Workflows FLOW THROUGH RECEIVE/YARD CROSSDOCK PUT-AWAY REPLENISH PACK/AUDIT/RETURNS VAS LOAD/YARD ADMIN INVENTORY CONTROL PICKING STOCKING
11 Where the costs are? Store Costs 55% Returns 8% Transp. 7% DC 30% Labor 60% Space 25% Equip 15% Labor Expenses Pick 60% Represents, on average, 18% of all ops costs for traditional retailers Picking is 11% of total!!! Other 40%
12 What DC management is looking for? They are pressed by the common enterprise requirements: Revenue Growth Increase the profitability Increase Customer Satisfaction What it means for DC? More pallets, totes, boxes and SKU s to be moved Reduce operational cost, no additional assets, no additional workers Reduce errors in workflow process, more services to be added, quality increase Improve DC Throughput More orders per day, per worker: To work more efficiently And. Without incrementing space, assets, resources or salaries. The answer is: Invest in technology!!
13 The Most Complete AIDC Solution Portfolio SCANNING MOBILE COMPUTER PRINTING VOICE SOFTWARE RFID GLOBAL TRACKING OEM Offering the Broadest Solution Set in the AIDC Industry
14 HGT Asset Tracking HGT brings a Value-Added Solution: Track & monitor mobile assets anywhere via satellite Provides visibility & communication where cellular network coverage is poor Easy to deploy hardware + software + airtime solution
15 HSM Mobility Portfolio 8600 series CK3X CK71 Tecton Dolphin 70e Captuvo SL42 Thor VM1 / CV41 Thor VM2 CV61 Dolphin 60s CN51 CN70e Captuvo SL22 SL62 Dolphin 60s Dolphin 70e Dolphin 6110 CK3R Captuvo SL42 Dolphin 60s Dolphin 70e Dolphin 7800 CN51 Dolphin 70e CN51 CN70 Dolphin 99EX CK70 CN70 D99EXni i.roc Ci70 Dolphin 7800 Dolphin 99EX For Mobility we have an impressively complete product range!
16 Scanning Portfolio Fusion 3780 Hyperion 1300g Xenon 1900 Granit Eclipse 5154 Voyager 95X0 Voyager 1200G & 1400G SR61 SF61B Orbit 7X10 QuantumT 3580 Stratos Solaris 7820 IS4225 Vuquest 3310g Genesis 7580
17 Imaging Software Solutions Using imaging software from Honeywell a wide range of OCR capabilities are available: - License Plate Scanning - Check Scanning - Container Label Scanning - Trash Can Serial Numbers - Shipping Labels - Chinese Government Car Labels - VIN Scanning - Aircraft Tail ID s - Reusable Containers Much more than simple OCR-A/B Use your imagination!
18 Printer Portfolio Desktop Industrial & Commercial PC23d PC43d PC43t PD41/42 PM23c PM43c PM43 PX4i PX6i Mobile Receipt PB Mobile Label PR3 PB22 PB32 PR2 PB51 PB21 PB31 PW50 PB50
19 Voice
20 Honeywell Core Technologies Power Management Ruggedization Automatic Data Capture Simulate RFID Bar Code Validate Voice Optical Character Recognition Strong Intellectual Property, Miniaturization and Leading Innovation Lasting as long as your workforce ShiftPlus+ Achieve Standing up to the Challenge Devices that Work as Hard as We Do
21 Technology is ready but.. What to use?
22 Types of Warehouses Degree of automation Kind of Product to stock Method for stocking Number of Orders per day/hour Number of SKU s per Order Quantity of items to be picked Picking Method Environmental conditions How is the product identification Just moving or manipulating.or a combination of many
23 The Most Surprising Statistics
24 Investing in Technology 90% of respondents said investment in new technology would ensure higher worker productivity OP + NT = EOP Old Process + New Technology = Expensive Old Process Technology on its own doesn t move the needle!!
25 The Value Engagement Process Achieving Greater Business Performance Initial Meeting Walk Through Executive Review Proposal Understand Unique Business Challenges Establish Specific Business Objectives Identify Workflow Impact Opportunities Develop and Quantify Solution Benefits Establish Business Case Review Proposed Impact Areas Customer Visit to Reference Operations Present Project Proposal
26 DC Areas for Process Improvement OUTBOUND Loading / Shipping Value Added Services Audit Returns Asset Tracking INBOUND Yard Operations Receiving Traceability QC / Vendor Compliance Asset Tracking ORDER FULFILLMENT Picking Packing Line Loading Cross-dock / Flowthrough FORK APPLICATIONS Putaway Replenishment Stocking Inventory Moves
27 Why Honeywell? Innovative Firsts Share of Demand Integrated 2D (2000) Near/Far 2D (2007) Address Reading (2010) Document Imaging (2009) Apple Sled (2012) Android w/gms (2013) Source: VDC Reports Honeywell Investments Are Driving the Industry and Our Success
28 Thanks for your attention 2014 Honeywell International All Rights Reserved
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