Case Studies > ARGOS DIRECT STRENGTHENS MULTI-CHANNEL RETAIL OPERATION with Supply Chain Solution

ARGOS DIRECT STRENGTHENS MULTI-CHANNEL RETAIL OPERATION with Supply Chain Solution

Customer Company Size

Large Corporate

Region

Europe

Country

United Kingdom

Product

Manhattan Warehouse Management
Psion Teklogix RF Equipment

Tech Stack

Warehouse Management System
Radio Frequency (RF) Equipment

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Customer Satisfaction
Cost Savings

Technology Category

Functional Applications - Warehouse Management Systems (WMS)
Networks & Connectivity - RF Transceivers

Applicable Industries

Retail

Applicable Functions

Warehouse & Inventory Management
Logistics & Transportation

Use Cases

Inventory Management
Warehouse Automation
Supply Chain Visibility

Services

System Integration
Training

About The Customer

Argos Direct is the delivery-to-home operation of Home Retail Group, the UK's leading home and general merchandise retailer. With sales exceeding £4.2 billion in the last financial year, Argos is a significant player in the UK retail market. The Argos website is the second most visited retail site in the UK, and nearly two-thirds of the UK population have an Argos catalogue at home. Argos Direct operates three warehouses in the UK, serving different regions of the country. The company needed to upgrade its warehouse management system to handle increased throughput and improve operational efficiency.

The Challenge

Argos Direct, the delivery-to-home operation of Home Retail Group, faced significant challenges with its in-house warehouse management system. The system, which managed order management, order taking, forecasting, replenishment, and warehouse management, was not scalable or flexible enough to handle significant increases in throughput. This limitation became particularly evident as Argos Direct expanded its operations to include three warehouses across the UK. The first two warehouses operated on the custom-built system, but the third warehouse required an entirely new warehouse management system to cope with the increased volume and complexity of operations.

The Solution

Argos Direct selected Manhattan Associates' Warehouse Management solution for a small pilot project at its Marsh Leys warehouse. The success of this pilot led to the full implementation of the solution at the new Faverdale facility. To complement the warehouse management solution, Argos Direct also selected radio frequency (RF) equipment from Psion Teklogix. The implementation went smoothly, and Argos Direct decided to upgrade the Marsh Leys warehouse to the Manhattan solution as well. The Marsh Leys warehouse posed a larger challenge due to its size and the number of SKUs it handled. Argos Direct adopted a 'mirror' model for the implementation, running the old and new systems in parallel during the transition period. This approach ensured a smooth data migration and minimized operational disruption.

Operational Impact

Efficiency increased in almost all warehouse activities, including receiving, put-away, pick and replenishment, loading, and returns.
A marked reduction in clerical work allowed Argos Direct to arrange its staffing more efficiently, leading to cost savings on stationery.
Speed of response improved, and there was a reduction in failed deliveries, enhancing customer satisfaction.
The progressive handover was a complete success, with no orders adversely affected by the transformation at Marsh Leys.
Argos Direct achieved real-time visibility of inventory and operational activities across its UK distribution center network.

Quantitative Benefit