Mexican Retailer Implements Solutions to Improve Distribution, Workforce Performance

El Palacio taps RedPrairie to consolidate items sold in stores, improve the way company receives goods from suppliers

Waukesha, WI — January 27, 2006 — El Palacio, a high-end retailer based in Mexico City, said today it has implemented RedPrairie's DLx Warehouse for distribution management.

El Palacio implemented the RedPrairie solutions in its 300,000-square-foot distribution center located in Mexico City on September 30, 2005. Since implementation, El Palacio said it has consolidated 80 percent of the 750,000 items sold at its stores, and has also improved the way in which it receives goods from suppliers.

Prior to implementing the system, El Palacio's suppliers shipped orders directly to each El Palacio store. Now suppliers ship all products to the distribution center where they are cross-docked for delivery to stores. Distribution costs have decreased, according to El Palacio, and the company gets better pricing from suppliers since El Palacio can order goods in large volume from vendors and have them shipped to a single facility.

As part of its supply chain solution, El Palacio implemented RedPrairie DLx Supplier to provide real-time collaboration between trading partners. Supplier gives El Palacio the ability to link suppliers into the process flow, enabling them to anticipate receipts, work with advance shipping notices (ASN) and standardize barcode labels for fast throughput at its warehouse.

"Distribution runs so much more smoothly since implementing RedPrairie. We are saving a lot of time and money in the supply chain, commented Carlos Mendez, director for El Palacio. Merchandise gets to the stores much more efficiently, reducing labor costs at the stores and decreasing our shipping costs.

RedPrairie's service partner in Mexico, NetLogistiK, provided local support for the El Palacio implementation. "The implementation at El Palacio went smoothly due to the commitment of the services teams from El Palacio, RedPrairie and NetLogistiK. The company began receiving benefits from their supply chain solutions immediately," said Ivan Fernandez, chief commercial officer, NetLogistiK.