A number of retailers joined Brian Leinbach from Macy’s and Tedd Winneberger from Under Armour to share their experiences and success stories during the Manhattan Associates Momentum 2012 conference in Orlando last week.
Currently undergoing a four-year expansion at its New York City flagship, with a price tag in the hundreds of millions, Macy’s is tapping Manhattan Associates’ supply chain expertise with the SCOPE solution suite. The $260B retailer is using Manhattan’s Warehouse Management Slotting Optimization, Labor Management and Distribution Management solutions.
As Macy’s cross-channel business continues to grow, the need for more effective supply chain solutions has become apparent. “Our web sites are growing at 40% each year,” said Leinbach, SVP, Systems Development and Field Services for the 840-store retailer. Macy’s also found that “90% of our customer research online at least occasionally before purchasing in-store.”
More specifically, “Our furniture assortments begin to sell as soon as they are on the ship from Asia,” Leinbach noted, so the supply chain systems must be functioning seamlessly.
Macy’s Adds Digital Technology, RFID
With its supply chain systems running smoothly, Macy’s also is focusing on the latest technologies to improve the customer experience in its flagship and other stores. In additional to specialized kiosks for certain departments, Macy’s also is looking at digital mannequins, which would provide a unique interactive experience for shoppers, according to Leinbach.
Other innovations coming to Macy’s include:
- A new visual broadcasting system that tailors videos by department, merchandise or time of day.
- In the cosmetics area, a Beauty Spot kiosk will feature an interactive touchscreen; and the Clinique counters will feature a specialized iPad application.
- In-store wifi will be available in all 840 locations by the end of 2012.
- Partnering with Google, Macy’s is offering Tap & Go mobile payment and can delivery electronic receipts.
- Store associates can now receive digital images on their devices; and at the POS a “search and send” function provides information on alternate product availability and orders/sends the products in real time.
- Item-level RFID “will be a real game-changer and is coming to Macy’s soon,” noted Leinbach.
- A significantly expanded shoe department will feature one full acre of selling space, 150 sales associates on the floor and 80 expeditors in the stock room. “It will be the world’s largest shoe store,” according to Leinbach.
Under Armour Tightens Supply Chain Expenses
With increased competition and a challenging economy, Under Armour sought to better manage expenses and found one answer with the Manhattan Associates Extended Enterprise Management (EEM) solution. Breaking away from “pay as you go” invoicing, Under Armour was able to reduce monthly transaction fees and overall invoicing expenses. Tedd Winneberger, Trading Partner Analyst for Under Armour, shared the athletic retailer’s experiences during a Distribution Management session at Momentum.
Darice Reduces TCO With Manhattan Solutions
A combination wholesaler/retailer, Darice is the largest distributor of arts & crafts products, supplying major retail chains and big box stores throughout the U.S. The full line of products is available at the darice.com web site.
In the early 2000s, Darice was faced with an outdated homegrown ERP system which was beginning to stagnate the business. After hiring resources to help invest in new systems, Darice partnered with Manhattan Associates to implement the SCALE supply chain system. “SCALE offered a lower total cost of ownership (TCO) from a platform perspective compared to other products,” noted Jim Petkunas, CIO, Darice, Inc., in an exclusive interview with Retail TouchPoints.
With SCALE in place, “We now have an automated system that allows us to react to a lot of different customer requirements,” noted Petkunas. “The system also reduced exception processing.”
Additionally, Darice uses the Manhattan Associates Slotting Optimization solution, noted Petkunas, “to ensure products are placed optimally in the warehouse.”
Petkunas added: “Now we can effectively service all retailers from product development to servicing.”
Container Store Announcement
Also during the Momentum conference, Manhattan Associates announced a new partnership with The Container Store, which selected solutions from the SCOPE supply chain portfolio to optimize its growing multi-channel supply chain network. Headquartered in Coppell, TX, The Container Store has 54 store locations in the U.S. and is planning to open five new stores in 2012. The company is in the process of expanding its 720,000 square foot distribution center to 870,000 square feet to accommodate its expanding supply chain.
Other sessions during the three-day Momentum conference also featured retailers including Target.com, Publix, The Orvis Company and ASICS America.