Chilean Retailer ALMPAR Updates Enterprise Apps at DC

Deploys Delfour upgrade at distribution center to increase flexibility and accommodate growth

Deploys Delfour upgrade at distribution center to increase flexibility and accommodate growth

Markham, Ontario — April 1, 2005 — The Chilean conglomerate Empresas Almacenes Paris S.A. (ALMPAR), one of the first South American department stores (Paris) to adopt Markham-based Headwater Technology Solutions Inc.'s Delfour WarehouseLogic third-party logistics management software suite, has purchased the company's Smart Enterprise 2 upgrade of the suite for its retail division's Santiago distribution center, Headwater announced this week.

Located in Renca, a suburb of Santiago, the distribution center (DC) supplies some 25 department stores across Chile with an array of soft and hard goods, such as apparel, garments on hangers, electronics, appliances, furniture and home decor, and personal care items. The DC comprises a 40,000-square-meter (360,000+ square foot) ambient-temperature state-of-the-art facility that was built in the late 1990s, according to Carolyn Marmus, logistics retail analyst at ALMPAR.

Becoming a True DC

Marmus said that WarehouseLogic has been a critical component of the DC's technology apparatus, enabling the firm to transition from a "warehouse" activity to a true distribution center. It has since provided support for operational and growth elements of the retail enterprise.

Paris's new SmartEnterprise 2 suite includes the Enterprise Foundation, an integration layer; WarehouseLogic 2.4, the warehouse management software platform; ResourceLogic 2.4, the labor and task management platform, Active Desktop 2.4, the Web-based single point navigation and control interface; and the d'Amigo alert monitoring, data mining and reporting system.

Paris has used the WarehouseLogic suite since 1999, when Marmus installed the software onsite as an employee of Toronto-based Delfour (now Headwater) and subsequently remained to manage the system for the Chilean company. The SmartEnterprise 2 upgrade coincides with upgrades of the company's Oracle database and IBM AIX operating system.

Localizing the System

Since Chile is a Spanish-speaking country, Delfour was asked to create a multi-lingual platform for WarehouseLogic screens and functions. None of the translated functions will change with the upgrade.

"We need some Spanish-language entries," Marmus said, "but most of the entries and receipts are language-neutral numbers. The programs have the ability to create receipts based on the advance shipping notices (ASNs), as well as to manage cross-dock operation and the system-directed put-away process.

Marmus said that the company does not anticipate any changes in its internal procedures, and she expected the Java based capability to be useful in structuring various system-driven tasks and labor-related activities. "For example, cartonization of product and store delivery notification have proven extremely efficient for receiving product at stores," Marmus said. "WarehouseLogic is also managing product reservation at the point of sale and in shipping of home deliveries."

Productivity Increases

The third-party logistics (3PL) suite enabled Paris to achieve major increases in productivity, according to company executives: in receiving, a six-fold increase; in picking, three-fold; shipping, nearly four-fold. In loading, productivity has shown an eight-fold productivity increase. At the same time, the software allowed Paris to change from static to dynamic assignment of physical space.

"We're a growing enterprise, and the SmartEnterprise 2 migration will provide us with still more flexibility and functionality to support that growth as demands on the system increase," Marmus said, noting that the SmartEnterprise 2 suite will be extended to a new furniture warehouse and to the company's Internet business in the near future.

"This implementation of Headwater's Delfour SmartEnterprise 2 3PL management software is an excellent demonstration of just how flexible and adaptable the system is," said Headwater Senior Vice President Joe E. Couto. "While developed as an English-language system, the underlying functionality has proven its worth at one of South America's largest retailing organizations with only minor adaptations."