Case Studies > Happigo Advances Supply Chain with Manhattan Associates

Happigo Advances Supply Chain with Manhattan Associates

Customer Company Size
Large Corporate
Region
  • Asia
Country
  • China
Product
  • Manhattan Warehouse Management System (WMS)
Tech Stack
  • Radio-Frequency Enabled WMS
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Productivity Improvements
  • Customer Satisfaction
  • Cost Savings
Technology Category
  • Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
  • Retail
  • E-Commerce
Applicable Functions
  • Warehouse & Inventory Management
  • Logistics & Transportation
Use Cases
  • Inventory Management
  • Warehouse Automation
  • Supply Chain Visibility
Services
  • System Integration
  • Training
About The Customer
Founded by Hunan Broadcasting System in 2005, Happigo Home Shopping Co., Ltd., is a modern direct selling retailer using a variety of media channels including television, Internet, catalogues, telephone, and mobile devices to create an integrated selling platform. It is a market leader in China’s B2C market and a pioneer in the new generation of e-commerce in China. Happigo is the first live TV home shopping company in Mainland China, having gone out with its inaugural broadcast in March 2006. Based in Changsha, the capital city of Hunan Province, Happigo has built two warehouses in the city with a total storage area of 376,737 square feet. With a constantly growing demand for its products, Happigo aims to improve business performance across all channels in the coming years with a vision to become the top player in China’s e-commerce industry and to become a publicly listed company.
The Challenge
Happigo needed a scalable supply chain technology platform to support its growth ambitions and enhance its overall service offering. The existing ERP system and paper-based processes were insufficient to meet the future needs of the business, leading to inefficiencies and inaccuracies. To achieve its goals and support its fast-expanding business, Happigo realized it needed a more specialized system to meet its projected future growth. The company required a comprehensive, flexible, and scalable system to support its continued business expansion.
The Solution
After a competitive selection process, Happigo selected Manhattan’s Warehouse Management System (WMS) for its two warehouses in Changsha. Manhattan’s WMS provides best-in-class logistics technology that delivers measurable ROI and productivity gains in inventory, labor, physical space, time, and costs. The system efficiently manages multi-channel distribution operations and helps user companies to quickly respond to shifting demand patterns. It enhances inventory management by increasing accuracy levels and stock flow-through speeds, improves service levels by optimizing the order fulfillment process, and saves money by enabling productivity improvements throughout a company’s distribution operation. Following a period of discussion, system design, onsite testing, and staff training, the project went live. Upon completion of the deployment, Happigo had enhanced its order processing capability, increased picking efficiency, improved inventory visibility, and streamlined communication with its suppliers.
Operational Impact
  • Enhanced order processing: With Manhattan’s order processing functionality, Happigo is able to execute each order faster and more accurately. The company is now able to process an average daily shipping volume of 100,000 orders, three times the pre-Manhattan daily shipping volume. The new system has also helped Happigo deal with order discrepancy handling, including order cancellation and back-orders, which Happigo’s previous ERP system could not handle.
  • Increased picking efficiency: Prior to installing the Manhattan system, Happigo relied on its legacy ERP system’s limited functionality and many manual, paper-based processes to run its picking operation. This approach was plagued with inefficiency. However, when Happigo replaced its paper-based picking operation with the radio-frequency enabled WMS from Manhattan, it was able to automate its picking operation and increase efficiency.
  • Improved inventory visibility: With little visibility into product availability, location, or movement before the deployment, Happigo lacked the ability to effectively service its customers from different channels. With Manhattan’s powerful, yet easy-to-use inventory management tools, Happigo is now able to see inventory across its extended network.
  • Improved communication with suppliers: Prior to the deployment, supplier shipments were randomly organized, disrupting Happigo’s inbound inventory flows. However, Manhattan’s solution enables real-time collaboration between Happigo, its suppliers, and other relevant trading partners to improve communications and business process execution.
Quantitative Benefit
  • The company is now able to process an average daily shipping volume of 100,000 orders, three times the pre-Manhattan daily shipping volume.
  • The outbound shipping volume hit 150,000 on the first day after the system went live, compared to the previous 30,000 to 50,000 per day.

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