Work It Out Oct 1, 2007 12:00 PM
, by William Atkinson
JobZone
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Some WFM vendor systems need to be linked to existing systems provided by that same vendor. The three vendors offering this model are JDA, Oracle, and SAP. These suppliers are developing a footprint for retail, but as noted, WFM is an element of using all of their other retail programs, such as financials and merchandising systems, rather than a standalone.
Other WFM systems are open to be linked to existing systems in the organization. Vendors offering this type of WFM technology include Kronos, RedPrairie, Reflexis, Workbrain, and WorkPlace. (RedPrairie specializes in warehouse management WFM technology.)
In recent years, these and similar vendors have made efforts to allow their hardware and software to be run on any open-system platform that a retailer may have in place. Many retailers appreciate this flexibility, because they don't want to be locked in to any given vendor's proprietary architecture.
Once you have identified your high-level goals, or what you want to accomplish with WFM, you need to specify system requirements. “It is important to document requirements across functions,” says Madigan. “This means IT, distribution, call centers, and stores, but it also means HR and finance.”
Not involving these latter two functions until later, he believes, creates a tremendous amount of rework. “HR deals with employees, of course, and finance deals with the payroll costs, which are some of the most significant in the company. Finance has a vested interest in making sure they have a say in how these costs are managed and controlled,” he explains.
The system should have the ability to factor task-based jobs into schedules, such as taking inventory or moving merchandise. While headquarters will probably have primary control over WFM activities, it should allow store level managers to make adjustments to fit last-minute changes or store-specific requirements.
Selling the staff on WFM
Experts warn that you should expect more turnover as a result of the introduction of WFM. “People have to grow into the application, and you will lose some people in the transition due to resistance to change,” notes Daikoku.
To get workers to buy into the system, use features such as employee self-service to show associates the benefits of the new applications. Benefits for managers include freeing up time to do things other than make schedules. Benefits for employees include the opportunity to go online to view schedules and swap with other workers.
“Training and change management approaches are crucial,” says RedPrairie's Reilly. “You're messing with people's schedules in terms of when they work and how often they work, so you need to be very sensitive to this. For this reason, you need to spend time in the field explaining why you are doing what you're doing, and also explaining what is in it for them.”
You should also validate time and labor standards in the field before building the business rules that will govern deployment. “Standards should be in place prior to starting the project,” adds Daikoku. Otherwise, she notes, your perception of how work is done in stores versus how you can use scheduling to optimize work will not be aligned.
“Consult with actual users and managers as early as possible during the testing of the concept,” she suggests. “Bad assumptions will always lead to poor results.”
William Atkinson, a freelance writer based in Carterville, IL, has written for Apparel and Risk Management magazines, among other publications.
PAPYRUS PLEASED WITH WFM
Multichannel greeting cards and stationery retailer Papyrus used to struggle to achieve 10 drops an hour by its forklift drivers for replenishment and case picks, says WMS manager Del Duquette. “That group recently raised its minimum to 40 drops per hour, and the current average is 53,” he says.
How did the Fairfield, CA-based merchant manage this? Papyrus uses a RedPrairie warehouse management system as its WFM tool in its distribution facility. “We do not own RedPrairie's labor module, but we do our resource staffing and leveling from within the WMS version that we run,” Duquette explains. Papyrus credits the system with being flexible enough to match its constantly changing business needs.
The WFM tool helped make processes faster, while the WMS improved accuracy. In fact, the retailer's inventory accuracy is 99.95% on a consistent basis, which has allowed Papyrus to stop doing physical inventory. This means that the merchant no longer has to shut down product shipping for three days, Duquette says.
“We now run cycle counts that allow us to count our 30,000 locations a minimum of four times a year,” he notes. What's more, the company's fill rates on orders run 99.8% daily, with an average of 25,000 to 30,000 lines shipped. — WA
