Agenda • Supply chain challenges

     - DC operations, distribution channels, external factors.

     - Efficiency Impact. • Current technologies      - Tracking, Simulation, WMS, Voice, etc. • Dynamic analysis      - Leveraging dynamic simulation and tracking for improved efficiency. • Benefits      - Proactive analysis and forecasting.

Challenges DC Operations • DC scheduling of picking and replenishment. • Effect of Put-away on the DC. • Slotting and DC variability. • Resource scheduling and allocation. • Capacity planning and DC limitations. • Material handling equipment utilization. • DC Inventory cost and perishable items. Challenges in Distribution Channels • Shipping routes and transportation modes. • Cost control and reduction. • Maintaining freshness throughout the supply chain. • System variability and on-time delivery. • DC Locations and network optimization. • Visibility and tracking.

External Factors • Product variations and seasonality. • Transportation costs. • Unforeseen delays due to weather/other factors. • Product expiration, customer requirements, etc. Simcad Pro role in the transition to Lean Manufacturing • The dynamic value stream provides an efficient tool to validate existing or proposed design based on different product mixes.

• Kanban events and buffer sizes can be dynamically computed from the value stream. • Efficient reporting to generate best path, lean efficiencies, and OEE values. Measuring Improvements • Efficiency is the key measure for operational quality. An efficient organization indicates that      - Processes interact effectively,      - Communication is well defined,      - Customers enjoy a positive experience,      - Picking/Receiving/Put away/Replenishment are coherent,      - High profitability. • Lean Concepts applications      - Lean Concepts normally measure process level efficiency with minimal impact on global efficiency.      - Improving efficiency in one area should not impact negatively the overall measure, and any change effect should be analyzed throughout the process sequence.

Existing Technologies Simulation Benefits • Simulation is an asset to any organization provided that      - Data and models are valid,      - Tools are easy to learn by the “Non-Expert". • In the DC, Simulation is effective in      - Improving overall DC efficiency,      - Better understanding of material flow and process interaction,      - Capacity Planning,      - Resource requirements, slotting, visualization, etc. Solution Requirements • Must be able to Visualize and Analyze the current operation.      - Analysis is used to identify areas of maximum impact (best ROI).      - Distribution based analysis suffers from large approximation.      - Provides a global direction and not actual improvement.      - Real Data provides accurate representation, with variability implemented as a distribution. • Human Capital — Leverage available talent, gain buy-in.

Dynamic Simulation • Interactive On-the-Fly model changes.      - Input/Output constraints can be modified at any time during the simulation • Minimal or No coding requirements. • Connectivity to external systems.      - Models update based on external factors. Dynamic Simulation Dynamic Simulation Examples • Improved slotting. 1 .Problem:      - Capacity planning for the next 5 years. 2. Solution      - No additional “building space” required.      - Requires Re-Slotting of 15 locations in the DC.      - A 20% efficiency improvement by re-slotting the DC 3. Method      - Optimized pick path to eliminate congestion.      - Optimize Replenishment and Put-Away schedules.      - Re-slot the DC based on the dynamic behavior of the DC. Dynamic Simulation Examples (2) • Improve DC layout      - Problem: “The Company Standard” DC layout was implemented.      - Solution           - New DC Layout           - Improved conveyor flow • Overall savings — $300K/Year • Method      - No additional building space required.      - Dynamic optimization and analysis of the interaction among DC operations. Live Data and Dynamic Simulation Live Tracking/Virtual Camera • Connectivity to WMS/Voice or other tracking systems. • Update rates are adjusted to system requirements. • Any changes on the floor are reflected on the desktop. • Hover or click feedback connectivity required for maximum effectiveness. • Applications      - YMS, DC, Supply Chain, etc. Replay W/Analysis • By recording events, Dynamic Simulation can replay any data point.     - Replay is based on time.     - Fast forward/Rewind — DVR like controls. • Eliminate the need to collect data for analysis     - “Switch to Simulation” at any point during replay.     - Data collected dynamically from the set and used in the simulation analysis. Dynamic Forecasting Additional benefits • Web enabled dashboards and animation      - Dashboards defined per area based on live data      - Animation based on replay or current state. • Alerts      - Trucks delayed, replenishment needed, etc.      - Rules determine when and who gets the alerts. Summary • By Proactively managing the operation, you can      - Reduce operation cost.      - Increase efficiency throughout the organization.      - Maximize utilization.      - Provide better capacity planning.      - Visualization/Replay/Traceability. • Think Ahead — Stay Ahead      - Using enabling technology to reduce cost, improve efficiency and maximize utilization. View Full Presentation