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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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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.

• 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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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

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

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

Figures based on peak operation

SCM EWM @ Hallmark Cards

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Introduction

• 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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ERP-WM ERP-EWM SCM-EWM

How & why did Hallmark select SAP EWM

WMS Selection

Business Requirements

Integration

Costs

Functionality & Usability

Strategy

Connect, Mobilise, Optimise, Benefit Practical innovative supply chain execution

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ERP-WM ERP-EWM SCM-EWM

How & why did Hallmark select SAP EWM

WMS Selection

Business Requirements

Integration

Costs

Functionality & Usability

Strategy

Connect, Mobilise, Optimise, Benefit Practical innovative supply chain execution

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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

How & why did Hallmark select SAP EWM

Connect, Mobilise, Optimise, Benefit Practical innovative supply chain execution

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Key Success Factor – Warehouse Definition

Accurate, optimised

behaviour & reporting

Process Configuration

Resource Characteristics

Warehouse Layout

Solid foundations or compromise warehouse

behaviour, resource utilisation & reporting!!!

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A decimal point could compromise warehouse

behaviour, resource utilisation & reporting!!!

Key Success Factor – Warehouse Layout

Over 600,000 warehouse layout

data elements for Hallmark

Bins Fields Layout

elements

Layout Data

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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

Building in quality

•Bring virtual warehouse processes into the testing

• Improved testing through process visualisation

•Helps test processes not transactions

Process understanding

•Bring virtual warehouse processes into the classroom

•Train on processes not transactions

•Accelerate and increase solution understanding

Optimisation and continuous

improvement

•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.

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Key Success Factor – EWM Flexibility Without the flexibility offered by EWM the Hallmark solution would have been

practically impossible!

• Multiple stock owners

• Configurable reporting

• End-to–end business process automation

• Extending strategies

• Enhanced replenishment

• UoM by business

• P&D optimisation

• Verification rules

• Multi-ERP integration

• Extending interfaces

• Tailoring warehouse RF experience

• Process variation by business

• Process variation by customer

• Process variation by storage area

Process Flexibility

Technical Flexibility

Implementation Flexibility

Enhancement Flexibility

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Key Success Factor – EWM Flexibility

• Reduced need for bespoke development

• SAP Add-ons ‘Rocket Packs’ further reduced development time, cost and risk

Bespoke Development

• 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!

Enhance SAP Process (BADI)

• Significantly improved process configuration options

• Very flexible warehouse processes

• Improved standard reporting

Configure SAP

Process

Consider SAP Add-ons for EWM to cut development

time, cost & risk.

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Key Success Factor – Managing EWM Flexibility With great flexibility comes great responsibility

Blueprint

Increased Blueprint design effort.

Ensure tightly defined practical design.

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.

Process Steps

Customer Specific Handling

Business Specific Handling

Storage Specific Rules

Possible Process

Variations

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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

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

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

SCM EWM @ Hallmark Cards Benefits Highlights

• Visibility of information

• Informed and empowered workforce

• Better management information

• Integrated warehouse

• Improved technical landscape

• Flexible warehouse

• Utilisation of resources

• Improved usability

• Reduction in process complexity

Future Potential

• Performance improvements

• Process improvements

• Voice enablement

• Labour management

• Extended reporting

• Add more business e.g. online retail

• Integration into SAP landscape

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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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