GUESS? Saves $1.3 M in its Supply Chain

GUESS? implements Manhattan Associates' Warehouse Management solution from the Manhattan SCOPE supply chain portfolio to optimize distribution in both the Los Angeles and Louisville DCs. Manhattan's Warehouse Management (WMS) solution, which is included in the Distribution Management solution suite, is designed for optimal collaboration and communication with an extensive network of suppliers and partners.

 

"Our LA facility was literally bursting at the seams due to increased demand," says Tom Boyle, senior project manager, GUESS? "After we opened the Louisville DC, we selected Manhattan's solution based on the strength of its reputation as the warehouse management expert for retailers and consumer goods manufacturers."

 

GUESS? has product lines in more than 300 retail and outlet stores and more than 200 licensee stores in 40 countries. It also licenses its brand name for a wide line of accessories including eyewear, footwear, jewelry and watches. The company's continued growth and success over the years placed great pressure on its distribution and warehouse management capabilities, in part because the majority of GUESS? customers were headquartered east of the Mississippi and being served by a single distribution center (DC) in Los Angeles, Ca. This geographic challenge prompted GUESS? to open a new DC in Louisville, Ky. and partner with Manhattan Associates to revamp its distribution network.

 

Manhattan's flexible WMS aims to support several different inventory methods for GUESS?, segmenting its wholesale and retail (including direct-to-consumer) inventory mix to better support its order processes. Because direct-to-consumer inventory is mixed with retail, consumers can purchase goods online and return them at a store. The flexibility helps GUESS? present a unified brand to its multi-channel customer base. Among the benefits GUESS? has received since the implementation include accelerating inventory turns- 30 to 40 percent more inventory is shipped year over year - and a lower cost per inventory unit, resulting in a $1.3 million savings in 2009.