Tips, tool and key success factors behind EWM implementation for

Tips, tool and key success factors behind EWM implementation for

Tips, tool and key success factors behind EWM
implementation for Hallmark Cards UK
Gordon Simpson, Supply Chain Line of Business Executive
Chris Osborne, Business Development Manager- Retail, Travel & Transport
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#SAPFORUM
Hallmark was founded more than a century ago by a teenage entrepreneur with a couple of
shoeboxes of postcards under his arm and the American dream in his heart.
Today’s Hallmark is a $4.1 billion business with greeting cards and other products sold in 38,000
retail stores across the U.S. and in 100 countries worldwide.
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10,000 new and redesigned greeting cards each year.
49,000 products available at any one time.
As big as they have become, and as iconic as the brand is today, they are still privately held, still
based in Kansas City, Mo., and still led by members of the founding family.
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SCM EWM @ Hallmark Cards
QUICK FACTS
SAP SCM EWM Project Scope
•
Distribution center based on EWM with
integration to 4 non-SAP ERP systems
•
EWM solution providing single warehouse
system for 4 different businesses in the
Hallmark Group in a Logistics Server Provider
style operation
Hallmark Cards PLC (UK)
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•
•
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Industry: Retail Distribution
Location: Bradford, UK
Hallmark Cards is a leading greeting card
retail business. Distribution Centre for
greeting cards, gift wrappings and other
personal expression products.
Website: www.hallmark.co.uk
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Project & Go Live Facts
•
Go live: June 2011
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Inbound put-aways per day: 1000
•
Outbound daily delivery lines: 10000
•
Replenishments per day: 650
•
Picking warehouse tasks per day: 5500
•
Number of warehouse users: 100+
•
Number of bins: 60000
•
Staging lanes: 32
•
2 shift operation 60 RF operators in a single
shift (3 shifts at peak)
•
MHE: Cherry picker, Man-up, FLT, Side reach,
PPT
Figures based on peak operation
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Introduction
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How and why did Hallmark select SAP EWM
Key Success Factor – Warehouse Definition
Key Success Factor – EWM Flexibility
Key Success Factor – Managing EWM Flexibility
Project Benefits Overview
Wrap up and Questions
Connect, Mobilise, Optimise, Benefit
Practical innovative supply chain execution
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How & why did Hallmark select SAP EWM
Costs
Functionality
& Usability
Integration
Business
Requirements
ERP-WM
WMS
Selection
ERP-EWM
Strategy
SCM-EWM
Connect, Mobilise, Optimise, Benefit
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Practical innovative supply chain execution
#SAPFORUM
How & why did Hallmark select SAP EWM
Costs
Functionality
& Usability
Integration
Business
Requirements
ERP-WM
WMS
Selection
ERP-EWM
Strategy
SCM-EWM
Connect, Mobilise, Optimise, Benefit
FORUM
Practical innovative supply chain execution
#SAPFORUM
How & why did Hallmark select SAP EWM
ERP
WM
ERP
EWM
SCM
EWM
Hallmark SAP roadmap
Multiple businesses & owners of stock
Business/customer specific process
Value added services
Multiple-ERP process integration
Labour management
Operational reporting
Native RF transactions
Yard management
SAP’s WMS strategy
Flexibility to enhance
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Connect, Mobilise, Optimise, Benefit
Practical innovative supply chain execution
#SAPFORUM
Key Success Factor – Warehouse Definition
Process
Configuration
Accurate,
optimised
behaviour &
reporting
Warehouse
Layout
Resource
Characteristics
Solid foundations or compromise warehouse
behaviour, resource utilisation & reporting!!!
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Key Success Factor – Warehouse Layout
Bins
Fields
Layout
elements
Layout
Data
Over 600,000 warehouse layout
data elements for Hallmark
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A decimal point could compromise warehouse
behaviour, resource utilisation & reporting!!!
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Key Success Factor – Warehouse Definition
60,000 Bins.
All in the correct position?
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Innovating EWM implementations with VWM
Helping to delivery high quality, robust
and well understood EWM solutions.
Warehouse layout
validation and
accuracy
• 3D layout visualisation
• Fast and accurate
layout data validation
• Accelerate data
correction
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Building in quality
• Bring virtual
warehouse processes
into the testing
• Improved testing
through process
visualisation
• Helps test processes
not transactions
Process
understanding
Optimisation and
continuous
improvement
• Bring virtual
warehouse processes
into the classroom
• Train on processes not
transactions
• Accelerate and
increase solution
understanding
• Contextualised view of
warehouse activity
• Understand warehouse
behaviour quickly
• Accelerate
optimisation phase
• Facilitate continuous
improvement
EWM QA service backed with the innovative
power of VWM.
#SAPFORUM
Key Success Factor – EWM Flexibility
Without the flexibility offered by EWM the Hallmark solution would have been
practically impossible!
• Process variation
by business
• Process variation
by customer
• Process variation
by storage area
• Extending
strategies
• Enhanced
replenishment
• UoM by business
• P&D optimisation
• Verification rules
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Process
Flexibility
Technical
Flexibility
Enhancement
Flexibility
Implementation
Flexibility
• Multi-ERP
integration
• Extending
interfaces
• Tailoring
warehouse RF
experience
• Multiple stock
owners
• Configurable
reporting
• End-to–end
business process
automation
#SAPFORUM
Key Success Factor – EWM Flexibility
Bespoke
Development
Enhance SAP
Process (BADI)
Configure SAP
Process
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• Reduced need for bespoke development
• SAP Add-ons ‘Rocket Packs’ further reduced development
time, cost and risk
• Flexible process enhancements through
Business Add-Ins
• Enhancement while retaining standard core
process with minimal development and low
TCO impact
• 80% of Hallmark BADI’s with less than 5
lines of code!
• Significantly improved process
configuration options
• Very flexible warehouse
processes
• Improved standard reporting
Consider SAP Add-ons for EWM to cut development
time, cost & risk.
#SAPFORUM
Key Success Factor – Managing EWM Flexibility
With great flexibility comes great responsibility
Process
Steps
Customer
Specific
Handling
Business
Specific
Handling
Possible
Process
Variations
Storage
Specific
Rules
Blueprint
Increased
Blueprint design
effort.
Ensure tightly
defined practical
design.
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Realisation
In-built quality.
Embrace
opportunity but
keep design on
track throughout.
Client knowledge
acquisition
throughout.
Keep
documentation up
to date as you go!
Testing
Testing is more
complex, more
scenarios.
Planning and
management
even more critical.
In-situ/Day-In-Life
testing was a
huge benefit.
Training
Training even
more critical.
Greater system
functionality
requires greater
understanding.
More information
for Super-Users.
Ensure support
organisation
readiness.
Go-Live &
Support
Hallmark saw
huge benefit of
DILO and
knowledge
acquisition.
Only 3 weeks of
on-site support
before transition
to 3rd line support.
#SAPFORUM
SCM EWM @ Hallmark Cards
QUICK FACTS
Hallmark Cards PLC (UK)
•
•
•
•
Industry: Retail Distribution
Location: Bradford, UK
Hallmark Cards is a leading
greeting card retail business.
Distribution Centre for
greeting cards, gift wrappings
and other personal
expression products.
Website: www.hallmark.co.uk
FORUM
SAP SCM EWM Project Scope
Benefits Highlights
•
Distribution center based on EWM with integration to 4
non-SAP ERP systems
•
Visibility of information
•
Informed and empowered workforce
•
EWM solution providing single warehouse system for 4
different businesses in the Hallmark Group in a
Logistics Server Provider style operation
•
Better management information
•
Integrated warehouse
•
Improved technical landscape
•
Flexible warehouse
•
Utilisation of resources
•
Improved usability
•
Reduction in process complexity
Project & Go Live Facts
•
Go live: June 2011
•
Inbound put-aways per day: 1000
•
Outbound daily delivery lines: 10000
•
Replenishments per day: 650
•
Picking warehouse tasks per day: 5500
•
Number of warehouse users: 100+
•
Number of bins: 60000
•
Staging lanes: 32
•
2 shift operation 60 RF operators in a single shift (3
shifts at peak)
•
MHE: Cherry picker, Man-up, FLT, Side reach, PPT
Future Potential
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Performance improvements
•
Process improvements
•
Voice enablement
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Labour management
•
Extended reporting
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Add more business e.g. online retail
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Integration into SAP landscape
#SAPFORUM
Takeaway tips to help your EWM project
Understand your software selection business case and
make a confident appropriate informed choice
Recognise the significance of accuracy in ALL elements of
warehouse definition: Process, Resources & Layout
Embrace EWM’s flexibility but ensure to balance with
appropriate effort into project activities & understanding
Keep control of the design, build quality in throughout all
project phases & aspects System, Technology, Operation,
People
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