High Tech Logistic (WMS Logistics Vision Suite)

Now HTL has two finished warehouse complexes in Alma-Ata. One – the high-rise warehouse on 30 thousand paleto-places brought into operation in January, 2007. The second group of warehouse complexes is in the territory of the industrial and logistic park and occupies 110 thousand sq.m. The park is located on intersection of two busy roads where it is going to build big Almaty ring (BAKAD) Highway. The warehouse complex consists of five blocks of the different area, from them three at the moment work, and they are already completely filled. In few months the equipment and finishing of two more blocks will be finished. This warehouse is not high-rise (warehouse height – about 10 m) because of permanent seismic hazard. For the rest the structure of warehouses is rather traditional: a rack system, small cells, zones of loading and unloading and also a zone of manipulations for packaging works, partitions of defects and a stikerovka.

Employees who already had solid work experience in this business took part in the organization of the company in 2005, it allowed to make already from the first steps the correct decisions, in particular, on building of business together with system implementation of management of a warehouse (Warehouse Management System, WMS). The partner in implementation – the ant Technologies company – acted as the designer of all main business processes. With the selected system – the product Logistic Vision Suite of the Greek company Mantis Informatics working at a basis of the Microsoft SQL Server, Butayev did not face earlier, but, having come to the company, was with it satisfied. According to him, in it there was a number of the functions which were absent in WMS with which it had to work earlier. However, according to Butayev, WMS of such class (among them there are EXceed and Manhattan) differ from each other a little functionally as logistic business is very well standardized. Distinctions are available in interfaces and methods of implementation of functionality. Accounting is automated on the basis of solutions of 1C Company, however, integration with WMS so far is absent (work in this direction is now conducted) therefore so far data are transferred to accounting manually, their repeated input is performed there.

Butayev considers that very important characteristic of WMS, as well as any other information system, simplicity of receiving updates is. For many WMS it is a problem. To clients the boxed solution which can be finished to needs of the client for the mezzanine board is proposed, however in this case the client loses an opportunity to receive updates as they are issued for box versions. Other important characteristic are resource requirements. As a rule, all WMS solutions very much resource-intensive. The important role, from his point of view, is played also by lack of a language barrier between users and the organization performing support of a system.

Necessary component of functionality of WMS – existence of the graphic instrument of design of business processes. Works are result, in particular, of "procurement" of new functional modules which after some completion can be built in a system. It allows to upgrade quickly the business logic put in an information system. However, Butayev uses these opportunities of the WMS, only if there are very serious reasons as considers that completely only developers and specialists of support understand functioning of a system. In case of need serious modifications he uses outsourcing.

Butayev notes that very important component of WMS is the algorithmic component as a considerable part of its functionality is connected with optimization of placement of goods in a warehouse and other compound actions. The first versions of a system considerably "braked" at the solution of similar tasks, but in the latests version negative effects disappeared. Butayev notes that when entering into the system of changes in a type of add-on modules and also after receiving updating it is necessary to test a product on a separate dedicated server with the copy of the real database. It is very convenient to provide on such server training of new employees – as a rule, errors which require elimination are always found.

IT support of warehouse processes

There is a number of key transactions which determine warehouse performance - it is acceptance and placement of goods in a cell, the choice and movement defined in the order pallets to certain gate of a warehouse, etc. Speed of their accomplishment is fixed and analyzed first of all. It determines the speed of accomplishment of other transactions. The special program which allows to receive reports on these transactions in different cuts, for example, the speed of work of drivers of pilers per hour, in change, in a month was by own efforts written. The program obtains data for reports from WMS. All transactions in a warehouse are performed using wireless scanners of shaped codes.

Let's consider how work is performed, on the example of acceptance of goods of Adidas company with which HTL works since February, 2008. The range of the company is very wide – from socks to "armor" of goalkeepers. From the electronic system of the client the electronic document containing information on the expected arrival, in particular numbers of boxes is sent to the information system HTL. Each box with goods has unique number which remains in a system. At a goods receipt on a warehouse the employee making acceptance scans individual numbers of boxes, after that the box can be placed in the storage area. After registration of the last number in the electronic waybill in a system the sign treats it "is accepted" and it is possible to prepare the printing document on acceptance on safe custody of certain goods. Also to the client the electronic document on actually accepted goods automatically goes. After that at it it becomes available to the order.

Further from the client in electronic form the order for shipment arrives. WMS on the basis of these data and data on placement of goods in a warehouse prepares a task for employees. Tasks are sent by a system on radio terminals. After receiving a task for the terminal screen the employee moves to the specified cell, scans its shaped the code and selects the necessary goods quantity, scanning results of selection. Transaction repeats necessary number of times. The picked-up goods come to a packaging zone where according to the order it is taken from the selected "heap" and are packed. Each subject before laying in a box is scanned. After filling of a box the packing list and the transport label is printed. The box is sealed and comes to a shipment zone. To the client information on goods, collected and ready to shipment, automatically goes. Before loading the storekeeper scans boxes, confirming thereby that he submerged them in the vehicle. After loading of the last box transport documents are printed, and to the client the report in electronic form automatically goes.

Concerning marking of goods the Adidas company is very accurate, and during the work it is easy to rely on IT. There are, however, clients during the work with whom it is necessary to use paper PIC sheets (so-called intaking sheets) as shaped codes often are not identified. To be fair it should be noted that a number of problems arose also with Adidas company. The known difficulties were created by a huge number of shaped codes of its products. Besides, in August, 2005 Adidas-Salomon purchased Reebok International company, and today still there are differences in shaped coding of products because of what recognition of shaped codes becomes complicated.

Chief information officer's portrait

In the company Ali Butayev submits to directly chief executive. There are two main areas of work of its division: business support (the department of business applications) and support of office users is engaged in it, in particular Service Desk (it is assigned to department of technical support).

As a part of division one more structure – department of technologies forms. The circle of its tasks will include design and upgrade of the main business processes. It is explained by specifics of business activities of the logistic operator. The sales department finds clients and by negotiations determines parameters of contractual relations. Further with the client it is necessary to build the main business processes which implementation, as a rule, assumes active IT interaction, in particular formation of electronic document management. The arising problems require the immediate solution therefore it is important that design and IT support of processes were in some hands. Butayev considers that it is correct as information technologies play a basic role in activity of the modern logistic operator, without them enough high-class therefore the IT head should understand business subtleties not worse is impossible predostavlyatyuslug, and even it is better, than functional managers.

In some cases the IT department should act as the engine of production process, imposing to functional divisions, in this case a warehouse, the correct business processes considering everything features of business of the client and a possibility of WMS. Butayev remembers that in his practician there was a case when because of not involvement of IT into development of business processes with the client the contract appeared on the verge of failure as the information system did not allow to save one of key parameters of required length for the client.

If necessary to organize business IT support Butayev will prefer to purchase the solution from vendor if business process is rather big. If the small, local problem is solved, then the staff of department of business applications is able to write the necessary application, though does not position themselves as professional developers. The program of the analysis of labor input of the main warehouse transactions about which there is a speech in article is an example.

In HTL does not practice to use the agreement on the service level yet (Service Level Agreement, SLA), but Butayev considers that it is necessary and aims at his formation. He considers that "SLA disciplines both business, and IT. The bloated staff of IT departments, problems with the budget, frequent support calls in IT department on small questions, etc. – all this consequence of absence of SLA".

Estimating the division from the economic point of view, Butayev holds the following opinion. Any division in itself is cost center. At the same time the commercial organization is not just the amount of separate business divisions. There is a synergy effect: each division, cooperating with others, turns from cost center into profit center.

As for assessment of cost efficiency of IT projects, Butayev considers that it is possible to carry out these calculations and it is necessary, but the company for this purpose has no necessary technology. "Assessment of ROI in IT projects – an ambiguous task. Somewhere we can count this value (for example, upon transition from paper technology to paperless), and somewhere it is simply impossible", such is Butayev's opinion.