Atlanta December 17, 2002 Clothing retailer Casual Male Retail Group is implementing a supply chain execution solution from software company Manhattan Associates to manage all aspects of its new distribution center (DC).
CMRG is the largest U.S. Men's Big & Tall retailer, and the company also operates Levi's Outlet by Designs, Dockers Outlet by Designs, Candies and Ecko Unltd stores.
The retailer is tapping Manhattan's PkMS solution to streamline distribution processes in the company's new 600,000 square-foot DC located in Canton, Mass. This facility will fulfill orders for more than 600 retail store locations that are currently served by two separate DCs.
Using PkMS, CMRG aims to synchronize its distribution processes, improve its ability to cross-dock and better manage inventory in real time through radio frequency (RF)-based transactions. In addition, CMRG anticipates that the move to a fully automated supply chain execution solution will help the company reduce labor costs in the DC by nearly 70 percent.
CMRG's decision to select Manhattan Associates was driven by the retailer's need to eliminate the significant integration issues that had resulted when Designs Inc. acquired Casual Male's 475 retail stores, forming the new entity of CMRG. A key part of the corporate-wide integration plan was to replace CMRG's homegrown, paper-based system with a supply chain execution solution that would manage and control its distribution processes more efficiently and effectively.
"Not only will PkMS enable us to achieve optimum efficiency by providing quicker, more concise order fulfillment and heightened customer service, but it also can adapt to our evolving business needs," said Dennis Hernreich, senior vice president and chief financial officer for CMRG.
Hernreich said CMRG is counting on the solution to increase the company's profitability and reduce its overhead costs. "With the recently completed integration of the Casual Male business, we expect the ultimate annualized cost savings to be up to $20-$25 million," he said. "A portion of these savings will be the result of the consolidation of our two separate warehouses into one centralized distribution center."
CMRG also will implement an interface to JDA Software Group's Portfolio Merchandise Management System-i, as well as several Allocation and Replenishment, Planning and Forecasting and Business Intelligence applications. This interface, jointly developed by Manhattan Associates and JDA, utilizes each company's standard application program interfaces (APIs) and will help to integrate CMRG's business processes. As a result, the interface facilitates the flow of information throughout the company's operation.