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House of Fraser Shapes Multi-Channel Strategy with Manhattan Associates


Retailer combines online and store fulfilment operations under one roof with Manhattan supply chain technology platform

Global supply chain optimisation provider, Manhattan Associates, Inc. (NASDAQ: MANH), today announced that House of Fraser, one of the UK & Ireland's leading department stores, has completed the conversion of its national distribution centre (NDC) in Milton Keynes from a store-focussed logistics hub to a multi-channel fulfilment platform by bringing its online and store fulfilment functions together under one roof and by extending its reliance on Manhattan's Warehouse Management software to drive both businesses. The revamped distribution network and associated reduction in operational overheads has delivered significant costs savings

House of Fraser has achieved the savings by moving its online operation from a third-party-operated warehouse in Surrey to its national distribution centre (NDC) in Milton Keynes. The online operation is now being run on Manhattan Associates' warehouse management software, which already handles the supply of goods to House of Fraser's 62 stores.

"Manhattan Associates was chosen for both the ecommerce and store-based sides of the business following a detailed review process," explained Mark Holland, supply chain director at House of Fraser. "It was essential that we had a single system that could cope with a future transition to a common stock platform — even though for now at least we still store the online goods in a separate part of the warehouse."h

Not only has House of Fraser dramatically reduced its operational costs by combining the two warehouses, it has also improved customer service levels. Goods are now made available online at exactly the same time they appear in the stores and managers have real-time visibility into inventory across both parts of the business. As a result, House of Fraser is able to get goods to customers faster, and it is able to respond more quickly to customer enquiries.

The implementation was handled by a team led by Mark Holland and comprised stakeholders from different parts of House of Fraser's business, including the Information Technology and eCommerce departments. "Manhattan Associates and our logistics services provider, DHL, both played significant roles in the process," added Mr. Holland.

"Manhattan Associates delivered in spades," continued Mr Holland. "We had experienced quite a few challenges in previous IT implementations, so we approached this one with extreme caution. It all went smoothly, however, and took less than three months from the end of the planning phase for the system to be up and running."

"We are delighted to be helping House of Fraser to upgrade a highly complex supply chain," commented Allen Scott, UK managing director at Manhattan Associates. "With a very wide range of brands, and an expanding channel mix, our extensive experience in cross-channel retail implementation projects really came into play. We look forward to continuing our relationship with House of Fraser as it continues to streamline its supply chain."

The next step for House of Fraser will be to improve efficiency further by combining the storage of stock for stores with that destined for home delivery.

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