Sustainability
3 Dec 2009

Improved Stock Control and Fewer Journeys Saves €200k

Catering Engros, the Danish food distributor, has made annual cost savings of €200,000 through improved stock control, fewer truck journeys and a 30 percent productivity improvement in the warehouse following its phased roll-out of Manhattan SCALE&trade: Supply Chain Architected for Logistics Execution (formerly Manhattan ILS). Catering Engros had identified the need for a new warehouse management system to handle the growth it was experiencing which had already resulted in the company expanding the size of each of its distribution centres (DCs) by 20 percent. The legacy paper-based system was causing picking errors and reporting inaccurate data regarding stock volumes and location.

Manhattan SCALE has been implemented at DCs in Copenhagen and Middelfart, Denmark, each of which has a capacity of 120,000 sq ft. Both distribution centres are now fully automated and Manhattan’s software is fully integrated with Catering Engros’ legacy ERP system and Vocollect voice technology.

“We have been able to reduce waste significantly as we have a more stringent stock rotation process in place,” said Mr Niels Habekost, Chief Financial Officer of Catering Engros. “The food with the shortest use-by date can easily be located and despatched first. Manhattan SCALE has had a further positive impact on our sustainability efforts. By eliminating the need to send replacement shipments to rectify picking errors, we have reduced our mileage by the equivalent of two vehicles on the road every day”.

“Catering Engros is reaping impressive rewards following its switch to a technology-driven system,” said Jan-Paul Boos, Senior Director at Manhattan Associates. “It is not just a simple case of improved traceability of stock, but also having a better understanding of the tasks that staff members are performing. It is important for any business to be able to optimise its labour and redirect resource to areas that are experiencing spikes in activity levels”.

Manhattan SCALE is designed to be ‘scaled to fit and ready to run’ for companies with execution-focused supply chain needs who desire speed-to-value and resource-light system configuration, implementation and maintenance. Manhattan SCALE is a portfolio of distribution management and transportation management solutions built on Microsoft.NET technology. It leverages sophisticated optimisation techniques to improve the flow of goods throughout supply chains, which enables companies to tie together processes, data and workflows to increase order accuracy, improve deliveries and gain total visibility into inventory.

To support existing customers and to facilitate future growth in Denmark, Manhattan has partnered with Integrate Warehouse Management A/S (IWM), a company that specialises in the design and deployment of advanced logistics solutions. Manhattan Associates and IWM are combining to sell Manhattan’s solutions in Denmark as well as provide consulting, implementation and solution support services to customers in the Danish marketplace.

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