Case Study: Supply Chain Transformation: A Retailer's Story On Creating A Flexible, Scalable And Efficient Solution

A national Tier 2 retailer was facing rising supply chain costs, excessive inventory growth, an unacceptable store level in-stock position and an overdependence on third party providers for logistical services and logistics data capture. Faced with the challenges of an increasingly competitive retail environment, the retailer embarked upon a strategic shift regarding the role of the supply chain within the organization. The goal was to create a flexible, scalable and efficient supply chain that would provide the retailer with a greater return on human, systems and physical capital.

While the installation of MMS-WM provided increased visibility to product movement and inventories within the DC, the ability to track product throughout the shipment life cycle was made possible by the installation of Manhattan Associates EEM software. The combination of increased distribution capabilities and product movement visibility made a significant contribution in reducing order-to-shelf lead times and variances. Given the decreased processing times, as well as the ability to respond proactively to developing issues within the supply chain, demand forecasting and demand planning accuracy improved. In turn, these factors contributed in some part to the reduction in overall inventories while overall company in-stock levels rose.

By creating a customized solution, the retailer was able to reduce costs and improve the efficiency of its supply chain. This retailer achieved several important goals by controlling costs, better managing inventory, and eliminating dependence on third party providers.