Visual Logistics

Breakthrough Technology for

Optimizing Warehouse Management

White Paper
Table of Contents

Executive Summary 3

Introduction 5

TECSYS Visual Logistics What Is It? 6

Visual Order Picking 6

Visual Location Mapping 7

Visual Order Sortation 8

Visual Receiving and Quality Assurance 8

Visual Packing 9

Visual Storage and Value Added Processing 9

Comparative Analysis: Visual Order Picking Versus Other Picking Technologies 10

Pick to Light 10

Voice-Directed Picking 10

Radio Frequency Handheld Picking and Visual Picking 11

What Profile of Distribution Operations Would Benefit from Visual Logistics? 13

Conclusions 14

About TECSYS 15

TECSYS Inc. (TECSYS) All Rights Reserved. This document and translations of it may be copied and furnished to others, and derivative works that comment on or otherwise explain
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All names, trademarks, products, and services mentioned are registered or unregistered trademarks of their respective owners.

TECSYS Inc. All Rights Reserved. Visual Logistics White Paper. 2

Executive Summary
The proverb that a picture is worth a thousand words refers to the idea that complex stories can be described with just a single
still image. This proverb is thought to be attributed to the ancient Chinese thinker and social philosopher Confucius. It is therefore
a mystery that this simple concept has never been applied to industrial applications such as warehousing and distribution
operations which have traditionally provided text-based or aural instructions to workers at the floor level.

As the first generation of humanity raised on visual technologies (PCs, iPods, BlackBerry smartphones,) enters the workforce,
the ability to attract, retain and motivate associates will be increasingly contingent upon companies thinking differently about how
operators interact with industrial technologies, particularly in distribution environments where operating schedules and work effort
requirements already present human resource challenges.

Today, a new era of visual technology is generating excitement in the software market
for warehouse management systems (WMS). TECSYS, a market-leading provider
of logistics software applications, has spent two years developing a breakthrough
technology called Visual Logistics which provides a completely new approach to how
operators perform warehousing work. For the first time in the history of distribution
operations, visual images and instructions are presented to operators via radio frequency
handheld units. Visual information can be associated to literally any functional work task
or warehouse entity to help operators perform their work as accurately and productively
as possible. A few examples follow to illustrate the power of this technology:

At receiving, operators are presented with product-specific visual instructions to

ensure that the appropriate quality assurance checks are performed.
During order picking, operators are presented with product-specific images to
enable a visual validation combined with a traditional scan validation to ensure
that the correct unit of measure and quantity is being picked.
During order picking, operators are presented with a visual warehouse location
map to quickly guide them to the assigned pick location eliminating the wasteful
and time-consuming process of searching for the pick slot.
When picking to a cluster of multiple cartons or totes, operators are presented with a visual guide as to the exact carton
or tote into which to put the selected products.
During the packing function, operators are presented with visual instructions to show them the correct shipping provider to
use and/or where the label is to be placed to ensure compliance to customer-specific shipping or routing requirements.
During cycle counting, operators are presented with product-specific images to ensure that they are counting the right
product and the right unit of measure.

These are just a few examples of how Visual Logistics is changing the dynamics of warehouse management. Visual Logistics is
not just a new order picking technology; rather it is a solution that provides valuable benefits across all day-to-day warehouse
operations from receiving through to shipping. Having said this, Visual Logistics will undoubtedly deliver its greatest benefit to
distribution operations by increasing the overall accuracy and productivity of order picking operations. To this end, this report
provides a detailed comparison of Visual RF Order Picking versus alternative order picking technologies such as traditional text-
based RF Order Picking, Pick to Light and Voice Directed Picking. Within the body of this report, a description of each picking
technology is provided as a guideline to selecting the technology with the strongest fit to specific distribution environments. The
findings and conclusions of this report indicate that TECSYS Visual Logistics provides a strong return on investment with distribution
operations that have any of the following characteristics:

1. A high variety of slow moving products

2. High dollar value products in inventory relative to the cost of labor, whereby picking errors are costly to the business

3. The need to perform data capture (e.g. lot number, serial number)

4. The need to perform customer-specific or product-specific value added services.

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Visual Logistics takes the guess work out of warehousing operations by combining visual information with bar code scanning
precision to confirm the accuracy of all work tasks. Industry experts recognize that language-independent visual information
enables people to interpret and validate work instructions faster and more accurately than text-based information. This is the
main reason that traffic signs around the world are increasingly based on standards that incorporate visual information. In
fact, an improvement of up to 30 seconds per work transaction is considered to be a realistic and conservative productivity
gain assessment enabled by visual instructions. These precious seconds translate into hundreds of thousands of dollars of labor
efficiency savings for many distribution operations (for more detail on ROI, see the illustrative example on page 7 within the body
of this white paper).

The possibilities of how to apply Visual Logistics are truly limited only by the human imagination and the benefits go well beyond
increased productivity and accuracy. Visual images stimulate the mind and create a heightened awareness such that operators
take more interest in their work tasks at hand. Visual Logistics significantly simplifies the training of new employees because
pictures are language-independent, warehouse location maps help associates easily navigate through the distribution center, and
product-specific images help new associates gain confidence quickly as they handle items they have never seen before which is
particularly beneficial in highly seasonal operations where SKUs come and go frequently.

Lastly, Visual Logistics provides a far more effective and rewarding work environment as compared to having to tolerate
working from thousands of repetitive and difficult to read text-based instructions or mundane voice-based commands every day.
Operators who have their minds on their jobs are more likely to care about the quality of their work and therefore more likely to
enjoy their work and will make less mistakes. After all, in the words of Confucius, Choose a job you love, and you will never have
to work a day in your life.

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Introduction
Since the mid-1980s, the warehouse management system (WMS) market has steadily evolved to the point where thousands of
distribution centers are now managed by sophisticated real-time software systems and automatic identification technologies. In
fact, the market has matured to the point that many companies are now replacing their legacy WMS applications with next
generation software systems that deliver significantly more features, functions and flexibility to increase operational productivity,
accuracy, flexibility and quality. Within this market, TECSYS has been a longstanding supplier of warehouse management systems
with hundreds of installations successfully implemented across North America, Europe and Latin America.

A warehouse management system is typically deployed in conjunction with automated data collection technologies to capture
information and to validate the operators work tasks in real-time. In the beginning, the most common technology deployed
was the radio frequency handheld device combined with integrated scanner to automatically capture and convey bar code
information to the WMS. In the 1990s, alternative technologies emerged such as Pick to Light (PTL) and Voice Directed Picking
(VDP), but until recently, there has not been any revolutionary technology innovation that makes a significant difference in
operational productivity and quality to cause excitement within the industry, both from suppliers and users perspectives.

Enter the powerful and long overdue concept of Visual Logistics which will most definitely raise the bar in the highly competitive
WMS market place. This technology represents a new and important evolution because for the first time, visual information is
communicated to the operator across all functional activities within the distribution center. Why will Visual Logistics be of such
critical importance to the distribution industry? This document sets out to answer this question by exploring the following topics:

What is Visual Logistics?

Why does Visual Logistics improve accuracy and productivity?
How does visual information help the associate working on the floor?
How does this technology compare against other order picking technologies such as pick to light and voice directed
picking? What are the pros and cons of each technology?
What profile of distribution center operation and industry sector make the best fit for Visual Logistics?
What are the financial and qualitative benefits of Visual Logistics?

TECSYS Inc. All Rights Reserved. Visual Logistics White Paper. 5

TECSYS Visual Logistics What Is It?
Visual Logistics is part of TECSYS warehouse management system. TECSYS, a market-leading provider of logistics software
applications, has developed Visual Logistics in its WMS application to enable customers to give visual instructions via handheld
radio frequency units to workers at the floor level. This approach is unprecedented because WMS applications have always
relied on difficult to read text-based instructions to assign work tasks to operators. Over the years, alternative technologies such
as Pick to Light and Voice Directed Picking have emerged, but no single technological innovation has ever been developed to
enable an operator to receive visual information across all work functions within the distribution center.

Visual Logistics is considered to be a breakthrough technology that enables new heights for efficiency because operators receive
visual information to speed up the time required to find slot locations throughout the distribution center. Visual Logistics increases
task accuracy because it provides visual images of products and/or visual instructions to confirm the operators work tasks.

It is important to note that the concept of Visual Logistics is not just a new order picking technology since it can be applied to
all functional warehousing operations. In fact, visual information can be associated with any labor task or any physical entity
that is at work within a distribution operation. Below are some examples of Visual Logistics applications and how they benefit
distribution operations in the following warehousing activities:

Visual Order Picking

Visual Location Mapping
Visual Order Sortation
Visual Receiving and Quality Assurance
Visual Packing
Visual Storage and Value Added Processing

Visual Order Picking

A good way to appreciate the impact of visual information is to look at the following side-by-side RF screens which depict
examples of text-based versus visual order picking:

The RF handheld on the left depicts how most WMS presents task instructions to the operator at floor level (i.e. text-based
commands appear on a mobile radio frequency handheld or truck mounted device). The operator interacts with the device
by reading and interpreting the displayed information, by scanning bar code labels on products and/or bin locations, and by
pressing buttons to confirm or enter quantities. With the traditional text-based approach, the operator scans a product-specific
UPC bar code to validate that the right product is being picked, but there is never a guarantee that the operator selects the right
unit of measure or that the right quantity is being selected.

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By contrast, the RF handheld on the right depicts how Visual Logistics presents the same information to the operator for a similar
work task (all instructions are completely user-configurable, no programming required). The visual represetation of the product to
be selected leaves no doubt as to which stock keeping unit of measure or quantity being requested. This visual representation
of information enables a significantly faster and more accurate interpretation of data as compared to text-based information.
Visual information ensures that picking errors are captured immediately at the time the pick task is being performed, rather than
hopefully being caught at a downstream audit or checking process. While no system
is perfect, Visual Logistics enables the operator to have a greater focus on the task at
hand to ensure a much higher degree of accuracy by reducing mistakes pertaining to
wrong SKU, wrong unit of measure or wrong quantity. This advantage is especially
important for companies that distribute products with a high dollar value.

Visual Location Mapping

Upon request, the radio frequency handheld screen provides the operator with a visual
warehouse location map. The operator immediately knows where to find the assigned
bin location without wasting time searching or guessing. In warehouse zones where a
high variety of slow moving SKUs are stored in static shelving units or flow racks, this
visual location map typically saves between 5 to 30 seconds of search time per work
task. While a few seconds of time loss may seem relatively insignificant, this time savings
quickly adds up to real money as per the example shown in the table below for a
distribution center shipping 20,000 order lines per day.

Visual Warehouse Visual Warehouse

Assumption Traditional Text-Based RF
(5 Seconds/Line Savings) (30 Seconds/Line Savings)

Elapsed time (seconds) to pick 1 order line 72 67 42

Split Case Pick Rate in shelving/flow rack

50 54 86
zones in order lines/hour

Daily man-hours required to select 20,000

400 370 233
order lines

Annual labor cost for order picking if op-

$1,352,000 $1,250,600 $787,500
erators are paid $13.00/hour fully loaded

Annual labor savings from Visual Logistics - $101,400 $564,500

This quick comparison provides an example of the labor productivity gains associated with TECSYS WMS Visual Logistics
application and how this translates into real labor cost savings that go directly to the bottom line. The above example is not
theoreticalthe figures are very typical order picking efficiencies that can be expected in a split case shelving/flow rack
operating environment. Travel time typically represents at least 60% of the time spent by operators in a distribution center and
with visual location mapping it helps to reduce a sizeable and wasteful component of travel time which occurs when operators
search for bin locations. Spending time on the warehouse floor with Visual Logistics technology will quickly reveal how a 5 to 30
second time savings per work transaction is actually a fairly conservative figure.

It is important to keep in mind that productivity gains from visual location mapping go well beyond order picking and also apply
to putaway stocking, replenishment, and cycle counting. The depiction of visual location maps provides all operators, regardless
of job function, with immediate guidance to locate bin locations throughout the distribution center for all work tasks.

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Visual Order Sortation
The radio frequency handheld screen provides the operator with visual information on
how to sort product that has been picked into multiple shipping cartons. This feature is
applicable to many warehouse operations where a cluster picking or batch picking
strategy is used to reduce the time required to select multiple orders in a single trip
through the warehouse zone.

Cluster picking is a picking system where an operator picks to containers for

multiple orders during a single pass through of the pick area. Cluster picking is
typically used when the total cube of multiple orders can be manually transported
such as with a cart, pallet, or gravity conveyor line.
Batch picking refers to the combining of a group of orders into a parent order
where order quantities are aggregated for each SKU and the parent order is
selected as a single order/single trip through the pick path to minimize order
picking travel time. Batch picking is often (but not always) performed with pick-to-
belt mechanized conveyor operations because a subsequent mechanical sorting of
the merchandise is required to reestablish order integrity before shipping.

In cluster picking operations, the operator typically picks the aggregate quantity of the parent order and then puts the child
order quantities into their respective containers (e.g. cartons or totes). To confirm that the product is placed into the correct
container, the operator scans a container-specific bar code label before sorting the product into the container. Unfortunately it
is not uncommon for mistakes to happen whereby the operator scans the right container but then subsequently places the product
into a neighboring container. This type of error may or may not be caught if there is some type of downstream checking process
where the actual weight of the container is captured and compared to the expected weight and the weight difference exceeds
a tolerance range. If the error is caught, then a person is assigned the time consuming task of travelling back to the pick location
and correcting the problem. If the error is not caught then the mistake is shipped to the customer.

Companies that have carefully studied the sources of picking inaccuracy have learned that the more containers in the cluster, the
more mistakes that are made. For example, a pick accuracy error rate of 1.4% with a cluster of two containers may be closer
to 2.0% with a cluster of three containers and this error rate climbs higher as the number of containers is increased. In other
words, the more containers in the cluster, the better the labor productivity because of the travel time reduction, but this has to be
weighed against a corresponding degradation in picking accuracy.

Visual sortation provides an image to the operator to significantly increase the probability that the put portion of the pick task
is performed to the right container. By virtue of the fact that the operator sees an image of the exact container position to which
the product is to be placed, the operator has a greater focus in which container to put the child order quantities. This is why the
trade-off between productivity and accuracy becomes much less of an issue and the size of the cluster can be increased without
suffering a reduction in accuracy.

Visual Receiving and Quality Assurance

The radio frequency handheld screen provides the operator with visual instructions
indicating which bar code the operator is required to scan in order to capture mandatory
product-specific or compliance information. This requirement is typically needed within
the inbound receiving process for the capture of lot number, serial number, catchweight,
or expiration date tracking requirements. The image depicts the exact location of the
bar code to be scanned so that the operator does not waste time determining which bar
code to scan or worse, so that the operator does not erroneously scan another bar code
on the exterior of the package. This not only helps save time, but it eliminates costly
receiving errors that will subsequently be problematic throughout all downstream work
processes.

Visual information at receiving would also ensure a consistent and systematic approach to
quality assurance checking. For specific products, it may be an essential requirement that

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the operator sample inspects inbound units for damage, appearance, integrity, completeness, freshness, etc. The visual display of
a product-specific image(s) will ensure that the operator accurately executes quality inspection requirements.

Visual Packing
The radio frequency handheld screen provides the operator with visual information for
customer-specific or product-specific packing requirements. Examples of how visual
packing can benefit distribution operations follow:

Customer-compliance requirements are facilitated by ensuring that all shipping

labels are placed correctly on shipping cartons.
Temperature-sensitive products may need to be packed into designated container
types to maintain cold temperature refrigeration of the product such as in the
pharmaceuticals industry.
High value products may need to be specially packaged to either protect the
product or to covertly conceal the identity of the product.
Hazardous products may require specific handling, labelling and packaging
requirements.

For distribution operations that have any type of complexity within the packing function,
visual packing can provide invaluable protection against losses stemming from inconsistent
or non-compliant shipments due to operator error or oversight. For many companies, the value of visual packing alone is one of
the most important innovations to provide immediate financial payback because of the reduction of non-compliance chargebacks.

Visual Storage and Value-Added Processing

The radio frequency handheld screen provides the operator with visual information such
as special material handling, storage or value-added service requirements that are
specific to a product or to an inbound order.

The benefits of visual value-added processing typically apply to companies that have
some form of value-added service or product-specific complexities that create the
opportunity for human error. Distribution centers with any type of kitting or work order
requirements are the most applicable types of operations that benefit from this feature.
It is not uncommon for these operations to struggle with challenges caused by human
errors resulting from the incorrect interpretation of text-based information. Even though
companies try everything to remind operators of how to perform work tasks, mistakes
are still shipped to customers. This results in expensive returns processing and frustrated
customer accounts leading to customer dissatisfaction and/or defection.

Visual value-added processing provides unlimited visual information to guide the

operator through kit assembly and work order production. This may involve presenting
images of kit components through to depictions or special instructions relating to their
assembly. Similarly, visual information can depict customer-specific or product-specific
special value-added services to ensure that instructions are carried out accurately.

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Comparative Analysis: Visual Order Picking Versus Other Picking Technologies
How does this Visual Order Picking compare to Pick to Light (PTL) and Voice Directed Picking (VDP) and what are the pros and
cons of each technology?

To answer the above question, TECSYS has invested into an independent comparative analysis conducted by external supply chain
experts. The objective of this analysis was to identify the key considerations that companies need to address before investing in the
most common order picking technologies presently available to the market. For the readers benefit, the information below provides
an extract of this unbiased perspective on the strengths and weaknesses of several proven mainstream order picking technologies.

RF Picking, pick to light and voice directed picking technologies have morphed over time to combine each of the other
technologies, but for the purpose of comparison, only the primary user interface is considered within this discussion.

Perhaps the most important distinction is that RF Picking, Visual Picking and Pick to Light solutions rely on the operators eyes,
whereas voice directed picking relies on the operators ears and memory (aural commands may be forgotten in which case they
need to be requested by the operator). For the readers convenience, we have provided a description and analysis of these
order picking technologies and their strengths and weaknesses.

Pick to Light
Pick to light is an order picking technology that primarily uses fixed LED readouts positioned at each inventory bin location
such that the locations and quantities to be picked are presented to the operator based on data received from the warehouse
management system. The typical scenario has LED lights illuminating at bin locations with quantities to pick appearing on header
displays whereby operators confirm pick tasks by pressing buttons at each pick location.

Pick to light technology is expensive and tends to be deployed in high pick density split case warehousing zones where there is
primarily a requirement for high speed picking productivity. The cost of a pick to light application is driven by the number of LED
lights required, and therefore by the number of SKUs that are assigned to the pick to light locations.

The most common application tends to be pick to light affixed to case flow racks whereby orders are picked to cases or totes
staged on gravity conveyor belts as can be found in many retail and wholesale distribution centers. Because of the high cost
of the solution, the application is generally only used in warehouse zones where high speed split case picking is the primary
requirement. In most distribution centers, this implies that only a subset of the overall operation is managed with pick to light
and that another form of picking technology is required to support the balance of the operation. Hence pick to light solutions
are often found in facilities that have multiple technologies to support picking operations, and therefore a higher technology
investment and complexity factor is inherent in these environments.

Pick to light systems are therefore suited to operations where some of the following characteristics may be found:

Very high number of daily order lines for split case merchandise where the cost of a picking error is low relative to the cost
of labor.
The emphasis is on productivity and accuracy, but primarily the need is to minimize order picking labor expense.
There is a large variety of products that have a medium to fast order line transaction velocity such that the system can
be cost justified, keeping in mind that the cost of the system is directly proportional to the number of products that are
assigned to pick to light LED locations.

Voice-Directed Picking
Voice-directed picking is supported by a portable terminal that primarily uses voice (aural) commands to direct the operator
and relies on speech recognition to complete a task and check digit confirmation information. Voice terminals are worn by the
operator in the form of headsets so that the wearer can communicate verbally in real time with the warehouse management
system (WMS). Order pickers are guided through their work tasks by computer-generated voice instructions which are verbally
confirmed by the picker.

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A key benefit of voice-directed picking is that the system cost is proportional to the number of operators utilizing voice terminals
as opposed to pick to light technology where the system cost is driven by the SKU count. Hence any distribution operation with a
low number of operators and a high number of products will likely be less interested in pick to light as a picking solution. Another
key benefit is that voice terminal operators can be moved anywhere in the distribution center to balance the workload across
different warehouse zones. This enables a more flexible workforce capable of responding to the daily ebbs and flows of labor
requirements on a real-time basis.

The popularity of voice terminals first emerged in grocery distribution centers where there is a high volume of heavy case
lifting included within refrigerated and frozen environments. There was a huge need in the grocery industry for a hands-free
technology to enable real-time confirmation of picking tasks. The primary advantage was improvement in order selection
accuracy with marginal productivity gains being a secondary advantage. In any environment where the operation primarily
consists of high speed full case picking (in cold storage or ambient environments), voice-directed picking may be a clear
winner. Having said this, companies tend to be more reluctant to use voice when the value of the product is high because voice
confirmation relies on the operator speaking a check digit rather than the actual scan confirmation of bar code information. For
similar reasons, RF handheld picking tends to be favoured when data capture is required as part of the pick transaction (for lot
numbers, serial numbers, etc.) because articulating lengthy character strings would be too erroneous and time consuming.

The deployment of voice terminals has been successful in split case operating environments, however the application for voice-
directed picking has been less popular in this context as compared to full case picking environments. The higher price of voice
terminals and software is one deterrent, but also many companies perceive that there is a higher degree of picking accuracy
when operators scan bar codes with RF handheld devices. For these reasons, leading distribution companies have tended to lean
towards using RF handheld technology for picking split case products, particularly in operations where there is a high variety of
slow-moving products.

The application of voice-directed receiving and stocking operations has been available for a number of years but few companies
have been willing to make the investment into voice technology for these functional activities, again this is primarily because RF-
directed scanning remains the most cost effective approach for these job functions.

Voice systems are therefore most suited to operations where the following characteristics are found:

A very high number of daily order lines for full case merchandise where the cost of a picking error is low relative to the
cost of labor.
Hands-free and eyes-free capabilities are of benefit because the use of a handheld RF device would be too punitive from
a productivity standpoint.
There is less of a need to capture product-specific information such as lot or serial numbers.
The emphasis is on full case picking and less so on picking a high variety of slow-moving products.
There is a possible elimination of pick labels that otherwise would be needed to be placed onto the cases being selected.

Radio Frequency Handheld Picking and Visual Picking

RF handheld picking is similar to RF visual picking in that operators receive text-based instructions via a mobile handheld or
truck-mounted radio frequency terminal. However with visual picking, the text instructions are accompanied by unlimited visual
instructions to further benefit picking operations.

RF handheld picking is by far and away the most widely deployed order picking technology in WMS-managed distribution
centers for the simple reasons that (1) it is the technology that has been around the longest, (2) it is the lowest cost technology
option and (3) it is flexible enough to be used across all functional warehousing operations. The capture and validation of bar
code information to confirm the accuracy of the product being picked, the bin location being accessed, or the shipping container
being processed are all primary uses of RF-directed scanning.

Visual picking has all of the same advantages as RF-directed scanning with the added benefit that visual information is provided
to further ensure that picking accuracy is achieved. Both RF directed text-based picking and RF directed visual picking can be
flexibly-deployed across all functional operations within the distribution center, thereby providing a low cost single technology
solution that supports maximum flexibility for workload balancing.

TECSYS Inc. All Rights Reserved. Visual Logistics White Paper. 11

RF picking and visual picking are therefore suited for distribution operations where any of the following characteristics are found:

A high variety of slow-moving products are being serviced.

Fast-moving products are distributed with a tight turnaround time and it is critical to the business to catch pick errors at the
time of order picking rather than downstream at a checking function.
Product-specific information needs to be captured as part of the picking transaction (e.g. catch weight, lot number, serial
number, expiration date, etc.).
The value of the product is high relative to the cost of labor and the benefit of scan validation is important to achieving the
highest levels of accuracy.
Visual picking tends to be especially advantageous to environments where customer-specific and product-specific images
provide additional benefits to ensure accurate products, units of measure, and quantities are being picked.
Visual Logistics technology is also highly suited to environments where value-added services are common such that images
provide more meaningful information than text-based instructions.

In conclusion, to summarize and compare these order-picking technologies, the following table is provided to illustrate the
strengths of each solution for order-picking operations:

Fit Factor (1 = excellent, 2 = good, 3 = weak)

Characteristics Visual RF Scanning RF Scanning Pick to Light Voice Technology
High-speed pick, high-density pick zones
3 3 1 2
> 250 order lines/hour
Pick productivity in low-density areas,
1 1 3 2
slow-moving product storage
Full case pick to pallet or batch full case pick
1 1 3 1
to belt
Product-specific information to be captured:
1 1 3 3
lot #, serial #
High-value merchandise, picking errors are
1 1 3 2
costly
Low cost solution, flexible to apply across all
1 1 3 2
functional areas
Low cost solution, flexibly deployed at high
1 1 3 2
variety of SKUs
Valuable visual information to operator,
1 3 3 3
product/task/customer-specific instructions
Ability to visualize travel directions 1 3 1 3
Ability to support cluster picking of multiple
1 1 3 3
orders concurrently
Reduction of picking errors 1 1 2 2

Proactive capture of errors at time of pick task 1 2 3 3

Hands free, high speed repetitive lifting of
3 3 3 1
heavy cases (grocery)
Simultaneous pick tasks at the same bin location 1 1 3 1

Dependence on operator memory 1 1 1 3

Initial operator training 1 1 1 3

Battery replacement 3 3 1 3

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As can be seen from the information in the above table, there are pros and cons to each picking technology that need to be
understood before making an investment decision and no single solution provides the best fit for all distribution operations.

What Profile of Distribution Operations Would Benefit From Visual Logistics?

Based on the findings documented within the body of this report, the profiles of distribution operations and industries that would
benefit the most from TECSYS Visual Logistics can be characterized by:

1. A high number of slow-moving products in storage.

2. High velocity products are distributed and it is critical to the business to proactively catch pick errors at the time of order
picking.
3. Medium to high value products are serviced.
4. Product-specific information needs to be captured.
5. Customer-specific or product-specific value-added services are performed.
6. A strong requirement for high productivity and accuracy without the compromise of having to trade off one for the other.
7. The distribution operation services seasonal product lines or in/out products where visual information improves accuracy
when operators are order picking.
8. Products without scannable UPC bar codes are being handled such that scan-based confirmation is either difficult or
impossible.

Industry profiles that have a strong fit to one or more of these characteristics include, but are not limited to:

Automotive Aftermarket / Spare Parts

Aviation Parts
Books, Music and DVD
Consumer Electronics
Consumer Products
Cosmetics, Health and Beauty Care
Electrical and Lighting
Electronics
Equipment
Furniture
General Merchandise
Hardware and Tools
Healthcare and Medical Supplies
Heavy Industry & Power Equipment
Housewares
Industrial Distribution
Jewellery
Parts Supply
Pet Supplies
Pharmaceuticals
Plumbing, Heating and HVAC
Sporting Goods
Telecommunications
Third Party Logistics (3PL)
Veterinarian Products
Wine & Spirits

The industries listed above provide a brief synopsis of the best fits for Visual Logistics for illustrative purposes only. In short,
wherever there is a distribution application suitable for mobile RF scanning, there is quite possibly a strong business case for the
advantages of Visual Logistics. After all, in the words of Confucius, a picture says a thousand words.

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Conclusions
In this document, a number of examples are provided to illustrate why TECSYS Visual Logistics is a new technology that provides
important benefits to distribution operations. Of course, the best way to appreciate how Visual Logistics increases productivity
and accuracy is to actually test drive the technology. Several important conclusions will quickly become apparent:

1. The increased speed that the human brain interprets visual information as compared to traditional text-based
information and how this can be leveraged to improve productivity and accuracy.
Operators working with traditional RF handhelds must interpret thousands of difficult to read text-based work task
instructions daily. It is easy to invert digits especially if the character strings for items and locations are tediously
long.
Visual Logistics provides operators with visual product information which serves as another source of validation to
ensure the right unit of measure and quantity is being processed.
Visual location mapping provides operators with the ability to quickly and easily find bin locations reducing wasteful
time spent searching when travelling to a new slot location in the warehouse.
2. Operators have a heightened state of awareness about the products being handled such that errors are detected at
the time the task is being executed, rather than hopefully being caught in a subsequent downstream checking/validation
processes.
Warehouse operators perform highly repetitive and mundane work that makes it difficult to remain focused and alert
every minute of every day.
The use of visual images in warehousing operations is a breakthrough technology because operators are significantly
more likely to pay attention to the quality of their work due to the fact that images stimulate the senses far more than
any other form of visual or aural communication.
3. The flexibility to display visual information across any process in the distribution operation such that waste and
inefficiency are significantly reduced across all functional operations.
When visual information is available to display customer-specific and product-specific instructions to operators, the
probability of human error is diminished considerably.
This translates into the reduction of wasteful downstream processes that are needed to fix mistakes made at the
original point of task execution. Eliminating waste is one of the fundamental tenants of lean distribution and Visual
Logistics is a key technology to support companies that are focused on implementing lean principles.
4. Ease of operator training and reduced associate turnover.
Many companies are challenged by high labor turnover rates in their distribution centers. The expense of hiring and
training new employees can be significant when one considers the decreased productivity and reduced accuracy
issues that management contends with when new hires are continuously introduced to an operation.
Visual Logistics helps to alleviate these costs by providing the backbone for a rapid training program, whereby
operators receive visual information throughout the day in terms of location mapping, value added services (e.g.
kitting) and product validation. This is particularly important to companies that have seasonal product lines or in/out
products because visual information assist operators in identifying the right product.
Visual images provide more job satisfaction for a new generation of associates that have been raised on PCs,
iPods, cellular phones and other graphical devices. People who are forced to listen to thousands of daily computer-
generated voice-directed picking commands are much less likely to enjoy their work due to voice fatigue factors.
People working with pick to light systems are more likely to turn off their minds as they perform endlessly repetitive
pick tasks. By contrast, Visual Logistics provides a far more humanistic work environment where the well-being of
the operator is not sacrificed to obtain the critically important twin objectives of achieving the highest levels of
productivity and accuracy. This translates into a higher level of employee satisfaction which implicitly contributes to a
reduced employee turnover.

In conclusion, the ancient proverb that a picture says a thousand words is something that we all intuitively understand, but until
recently, this conventional wisdom has never before been applied to distribution operating environments. TECSYS Visual Logistics
combines ancient wisdom with sophisticated technology which will definitely raise the bar in the highly competitive market for
warehouse management systems.

TECSYS Inc. All Rights Reserved. Visual Logistics White Paper. 14

About TECSYS
Founded in 1983, TECSYS is a market-leading provider of supply chain management software that delivers powerful warehouse,
distribution and transportation management solutions and industry expert services to over 600 mid-size and Fortune 1000
corporations in healthcare, third-party logistics, and general high-volume distribution industries. TECSYS is a publically-traded
company on the Toronto Stock Exchange (TSX) under the ticker symbol TCS.

For over fifteen years, TECSYS has provided hundreds of high volume distribution companies with market-leading WMS
solutions. Its Visual Logistics was first introduced to the market in December, 2009, following a two-year development initative.
VisualLogistics, a technological innovation part of TECSYS warehouse management software, enables customers to significantly
streamline all warehouse labor functions to achieve the highest levels of order accuracy and productivity known to date.

The fundamental business case for Visual Logistics is based on the ability to increase throughput in the distribution center. Quite
simply, increasing throughput rates is not the answer if there is a corresponding degradation of order accuracy. Achieving
the highest levels of productivity must be combined with world class accuracy levels to achieve maximum profitability. With
TECSYSVisual Logistics, distribution operations will be in a position to achieve these objectives without having to make tradeoffs.

For comments, feedback and/or questions about TECSYS Visual Logistics, please send us an email to:
GoVisual@tecsys.com
or call
514-866-0001
1-800-922-8649 (Toll Free)
or visit
www.tecsys.com

TECSYS Inc. All Rights Reserved. Visual Logistics White Paper. 15