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Chinese Logistics Services Provider KW Logistics Selects Manhattan Associates


Leader in B2C logistics services invests in advanced supply chain technology platform to support diverse customer base and ambitious growth plans

Global supply chain optimisation provider Manhattan Associates, Inc. (NASDAQ: MANH) today announced that KW Logistics, one of China’s fastest growing providers of third party logistics services and a specialist in B2C distribution services for pure-play online and multi-channel retailers, has chosen Manhattan SCALE: Supply Chain Architected for Logistics Execution. The solution, which will support the company’s ambitious expansion plans, will initially be installed at its Lianhua distribution centre in Shanghai and will subsequently be implemented across the rest of KW Logistics’ distribution network in mainland China.

Established in April 2010 and headquartered in Shanghai, KW Logistics operates four highly sophisticated warehouse facilities in Shanghai, which collectively cover 220,000 square feet. The company plans to build warehouses in Hangzhou in the second half of this year, and subsequently in Beijing and Guangzhan – other cities in China where e-commerce is becoming an increasingly important part of the local economy. Given the unique challenges of the e-commerce industry and the diverse nature of the various customers that KW Logistics serves (leading department stores, clothing chains, cosmetics goods and consumer electronics brands), the company required a world leading warehouse management solution to more effectively support its order fulfilment operation and increase inventory accuracy and turnover. Having grown significantly since its inception, KW Logistics made the decision to invest in a highly flexible and robust supply chain technology platform that could support the complex nature of its logistics services operations and sustain its aggressive expansion throughout mainland China.

As a newly formed and rapidly growing organisation, KW Logistics quickly realised that it required an advanced warehouse management system that would have the ability to fully optimise the operational processes within its growing distribution network. The scalable and configurable nature of Manhattan SCALE will not only reduce the complexity of the company’s order fulfilment operation, its user-friendly interface and flexibility will also enable KW Logistics to create tailored solutions for its customers’ unique and varied needs.

Zhang Qian, IT director at KW Logistics, commented, “Servicing the e-commerce industry presents many challenges. Different industries have different requirements for their systems. For example, for our cosmetic brand customers, we need to manage expiry dates and batch numbers. For high-tech projects, we need to record and track the serial number for every single mobile phone or personal computer. The nature of e-commerce operations demands that the systems supporting them are able to reliably manage high volumes of SKUs (stock-keeping units) and can replenish inventory quickly. As a service provider that prides itself on the highest standard of customer satisfaction, it is imperative we have a robust warehouse management system in place that can support critical processes including FIFO and FEFO and intelligent order fulfilment, all of which Manhattan offers.”

KW Logistics made the decision to work with Manhattan Associates because of its global reputation and proven track record in the supply chain optimisation and warehouse management space. It also recognised that by working with such a well-established and innovative company it would not only have a key competitive advantage, it would also improve productivity and enhance the overall quality of service that KW Logistics provides to its customers.

“We know Manhattan Associates is a highly respected player in the warehouse management industry and we know it has had many successful deployments for similar organisations throughout China and the wider Asia Pacific region,” explained Qian. “In terms of the company’s solutions, they offer the scalability and flexibility we require. Our industry is extremely dynamic and we must be able to meet the ever-changing demands of our customers – sometimes at very short notice. During a retail promotion for example, a store that usually produces 1,000 orders per day can generate more than 10,000 orders in the space of a few hours. With the support of Manhattan’s systems, our DCs will now be able to effectively manage the consistently high volume throughput associated with most e-commerce operations as well as the surges in demand triggered by events such as product promotions.”

In addition to providing KW Logistics with optimised inventory management and flawless order fulfilment, Manhattan SCALE will also support a number of other critical warehouse management processes including receiving, sorting, picking, packing, warehouse planning and optimised product layout.

“As an experienced and trusted supply chain solutions provider, we are seeing more and more examples of companies opting to work with us based on the number of deployments we have already successfully managed in China and throughout the wider Asia Pacific region,” said Arnold Consengco, managing director, North Asia, at Manhattan Associates. “We are very excited about the prospect of working with such an innovative and fast growing company as KW Logistics. We are confident we can support the company’s aggressive growth strategy, while also ensuring it delivers on its promise to provide outstanding service to its customers. Working in such a fast-paced environment as the e-commerce industry requires a flexible supply chain technology platform, which is what we offer and what helps our customers be the best at what they do.”

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