Guess warehouse management solutions

1. Guess’ Distribution Evolution Warehouse & DC Management Logistics Management May 2011

2. Guess’ Distribution Evolution Introduction Warehouse Management Solution (WMS)- controls the movement and storage of items within a warehouse. Processes associated transactions including shipping, receiving, putaway and picking. WMS often utilize Auto ID Data Capture (AIDC) technology, e.g. scanners or mobile computers. WMS can be a stand alone system (i.e. Best of Breed) or part of an Enterprise Resource Plan (ERP).

3. Guess’ Distribution Evolution Introduction Enterprise Resource Plan (ERP)- Comprehensive software package that integrates management information across an entire organization including logistics, finance, accounting, engineering, sourcing, procurement, human resources, payroll, benefits, etc. Examples : Oracle’s Peoplesoft , SAP’s mySAP

4. Guess’ Distribution Evolution Introduction Guess has grown from a $6 million family business in 1982 to a $2 billion international business in 2010. Ships 30 million units annually to department stores, 400 specialty stores and directly to customers

5. Guess’ Distribution Evolution Problems Guess had outgrown its main distribution center in Los Angeles by the late 1990s Lengthy transit times Current logistics system was too small for the growing demand and didn’t interface well with other software that was used

6. Guess’ Distribution Evolution Solution Moved main DC to larger facility in Louisville, KY Implemented Manhattan Associates’ WMS Implemented ERP (Enterprise Resource Plan) to interface with new WMS Separated wholesale and retail inventory Invested in new materials handling equipment

7. Guess’ Distribution Evolution Manhattan Associates’ WMS Software was developed for retail clothing industry. Formerly called PickTicket Management System ( PkMS ). Now referred to as WM. Paperless flow of inventory through the distribution center Automates the control, movement and storage of materials in a warehouse. Units are automatically received, inventory is automatically updated Improves accuracy of orders and reduces the amount of safety stock Automates picking, packing and shipping Consolidates orders to reduce transportation and shipping costs Reduce expenses on labor and storage by managing tasks

8. Warehouse Management Solution : Inbound Supplier  Advanced Shipping Notices (ASN) Advanced Shipping Notices (ASN) are sent to ERPs Wholesale ( Jesta I.S.) and Retail (RDA) ASNs are sent to WMS before the package arrives at the warehouse. Warehouse Control System (subsystem of the WMS) directs packages to quality check, weighing, put-away area for storage or picking for shipping. Packages are scanned and WMS is updated with current location and inventory level.

9. Warehouse Management Solution : Outbound Allocates available inventory for orders and chooses the location within the DC for distribution into sorters or put-to-light system . Real time interfaces between WMS & Warehouse Control System (WCS) directs the scanned outbound package to quality check, value-added services or to the print-and-apply area where shipping labels are automatically applied.

10. Warehouse Management Solution Materials Handling Equipment Bombay Unit Sorter- Consists of loop of trays connected to a chain. Product is placed on the tray and is dropped directly into a tote/carton. Used for medium sized packages. Put-to-Light system- Put system that uses light modules to direct operators to the correct location to sort items Tilt tray sorter- high speed sortation system that is used for small packages, e.g. jewelry

11. Warehouse Management Solution Benefits Flexibility- new WMS capable of interfacing with new sorters and ERP systems . Increased Accuracy- every package is tracked in real time Increased throughput- increased shipments by 30 to 40 percent Decreased weekly orders which reduces inventory costs Enabled Guess to keep up with growing demand Physical inventory down time decreased from 3 days to 12 hours