ATLANTA - February 1, 2012 - VF Corporation is a multi-billion dollar apparel industry powerhouse with a diverse, international portfolio of brands operating through 30 distribution centers (DCs) that manage 1,400 suppliers, 47,000 retailers and 786 stores. Following the acquisition of several high-profile brands over the last decade, VF Corporation selected Manhattan Associates’ (NASDAQ: MANH) Warehouse Management (WMS) and Labor Management from the Manhattan SCOPE® supply chain portfolio to manage the core distribution capabilities in its DCs to meet the diverse needs of its product lines, including Vans, a nearly billion dollar business. As a result, VF Corporation has seen a decrease in overall labor costs, as well as a 90 percent improvement in retail service levels.
“The transformed supply chain is keeping pace with the high-demand SKUs called ‘never outs,’ which are products that must always remain in stock,” said Terry Brown, director of supply chain systems for VF Corporation’s Global Business Technology group (GBT.) “We can now deliver these products to retail stores within 24 hours.”
The strategic decision to implement Manhattan’s WMS and LMS has strengthened VF Corporation’s various DCs and brands by managing personnel, raw materials, manufacturing processes, sales, retail and wholesale distributions, as well as logistics and customer service centers on a global scale.
“Speed to market is challenging for any large and growing company,” Brown said. “We needed better control of our inventory and a fulfillment strategy that would put the right product in the customer’s hand at the right time.”
The company’s wholesale service levels have gained momentum as well, achieving a 32 percent performance improvement. With increased visibility into its supply chain, VF Corporation has achieved nearly 100 percent inventory accuracy—a remarkable increase that has helped reduce inventory levels. “These improvements mean we’re getting the right product on the floor when it needs to be there,” Brown said.
The implementation of Manhattan Associates’ products has also allowed VF Corporation to increase the shipping and capacity support of Vans, which also included expanding its Santa Fe Springs, Cali. DC from 317,000 to more than 530,000 square feet.
By using a common fulfillment strategy and implementing complimentary process changes, Vans’ service levels for retail and wholesale improved by more than 50 percent while increasing inventory accuracy to nearly 100 percent.
“A compelling reason we opted to strengthen our partnership with Manhattan Associates—its WMS is the most functional and commercially available system on the market,” Brown said. “As we acquire new companies, there’s a high probability that Manhattan’s Warehouse Management is already in place. That allows for easier integration into our business processes.”
Manhattan’s Warehouse Management solution, which is included in the Distribution Management solution suite of the Manhattan SCOPE® supply chain portfolio, is designed for optimal collaboration and communication with an extensive network of suppliers and partners while optimizing every component — space, people, inventory and equipment—in a company’s distribution facilities. Labor Management, part of the Distribution Management suite within the Manhattan SCOPE portfolio, is designed to reduce labor costs by objectively measuring employee performance against pre-defined standards while decreasing employee turnover by rewarding efficiency, quality and safety.
About VF Corporation
VF Corporation is a global leader in branded lifestyle apparel with more than 30 brands, including Wrangler®, The North Face®, Timberland®, Lee®, Vans®, Nautica®, 7 For All Mankind®, Eagle Creek®, Eastpak®, Ella Moss®, JanSport®, John Varvatos®, Kipling®, lucy®, Majestic®, Napapijri®, Red Kap®, Reef®, Riders®, Smartwool® and Splendid®.
About Manhattan Associates, Inc.
Manhattan Associates continues to deliver on its 22-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 organizations 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.