Cape Town and Atlanta - June 13, 2011 - > Global supply chain optimization provider Manhattan Associates (NASDAQ: MANH) today announced that South-Africa based Massmart, sub-Saharan Africa’s leading food and consumer goods distributor, is implementing Warehouse Management and several optimization solution components from the Manhattan SCALE: Supply Chain Architected for Logistics Execution portfolio, at a new warehouse facility to be operated by its low-cost, retail grocery business Cambridge Food. The new facility will serve the business’s Gauteng region, the economic hub of South Africa and the region where the chain operates its largest store footprint.
Cambridge Food has plans to aggressively expand its store portfolio from a current network of twenty eight stores to one hundred stores in the next four years, greatly accelerating previous growth levels. The stores are currently located in the KwaZulu-Natal, Free State, Limpopo and Gauteng Provinces. The development will see Cambridge Food moving to a new warehouse in Johannesburg, set to open in July this year, where the business has secured 130,000 square feet of the building’s overall 380,000 square foot capacity, allowing room for expansion when required.
The move dictates that Cambridge Food invests in a formal warehouse management solution in order to efficiently replenish stock in its stores as the current manually-managed system will be insufficient to cope with the new demands of the expanded network.
Local Manhattan partner Supply Chain Junction, a specialist supply chain consultancy focusing on the South African market, is leading the project. The Manhattan SCALE solution components being deployed include Warehouse Management, Labor Management, Slotting Optimization and Supply Chain Intelligence, all of which will work in an integrated fashion to provide the retail chain with better visibility of stock, efficient warehouse management and improved order fulfilment while at the same time reducing overall costs.
“Once we had decided we would need to introduce a robust supply chain system in order for our accelerated roll-out of new stores to be a success, we evaluated several suppliers within the industry,” said Bill Davies, supply chain executive at Cambridge Food. “Manhattan Associates not only occupies the number one position for warehouse management solutions in the world, its innovative and constantly evolving solutions offer a short-term path to success while also delivering long-term value. They are able to operate within our limited timeframe and implementation is currently well underway. Finally Manhattan’s technology was compatible with Microsoft, whose technology we use in other areas of the business so it really did tick all of our boxes.”
“Cambridge Food previously used a manually-operated system, the success of which relied on human input alone. It generally worked well enough for Cambridge Food when operating a relatively low number of stores but with the company about to undergo a huge expansion drive, it was imperative for the company to adopt a leading supply chain systems platform to provide more efficiency and an easier and quicker way to serve the fast-expanding chain of stores,” added Jan-Paul Boos, senior director, EMEA, at Manhattan Associates. “We look forward to helping Cambridge Food and Massmart make an even bigger impact in Africa and improve further the overall service levels it provides to consumers as store numbers increase. ‘Out of stock’ product lines can often lead to disappointment in-store and with the inventory visibility and overall supply chain optimization capabilities that our technology provides, we’re confident Cambridge Food will see customer satisfaction levels further enhanced.”
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Massmart is a South African-based, globally-competitive, regional management group, invested in a portfolio of differentiated, complementary, focused wholesale and retail formats, each reliant on high volumes and operational excellence as the foundation of price leadership, in the distribution of mainly branded consumer goods for cash. It is the third largest distributor of consumer goods in Africa, the leading retailer of general merchandise, liquor and home improvement equipment and supplies, and the leading wholesaler of basic foods. For more information, please visit www.massmart.co.za.
Manhattan Associates continues to deliver on its 21-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The company's supply chain innovations include: Manhattan SCOPE® a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organisations optimize their supply chains from planning through execution; Manhattan SCALE™, a portfolio of distribution management and transportation management solutions built on Microsoft. NET technology; and Manhattan Carrier™, a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. For more information, please visit www.manh.com.