Case Studies > Kiabi growth story underpinned by Manhattan’s supply chain solutions

Kiabi growth story underpinned by Manhattan’s supply chain solutions

Company Size

1,000+

Region

Europe

Country

China
France
Italy
Russia
Spain

Product

Manhattan Warehouse Management
RF equipment Motorola
Conveyor (Savoye)
Put-to-Light (L4Logistics)

Tech Stack

Warehouse Management System
RF equipment
Conveyor Systems
Put-to-Light Systems

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Digital Expertise
Productivity Improvements

Technology Category

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

Applicable Industries

Apparel
Retail

Applicable Functions

Logistics & Transportation
Warehouse & Inventory Management

Use Cases

Inventory Management
Process Control & Optimization
Supply Chain Visibility
Warehouse Automation

Services

Software Design & Engineering Services
System Integration
Testing & Certification

About The Customer

Kiabi is one of France’s leading, value-clothing fashion retailers, offering an extensive range of womenswear, menswear, childrenswear and baby clothing. The company employs 6,000 staff and fulfils more than 40,000 store orders each year. These orders amount to 100 million individual items and are bought by customers in Kiabi’s 188 stores in France, 42 stores in Spain, 6 stores in Italy, and its first stores in China and Russia. The company also sells goods through its website at www.kiabi.com.

The Challenge

Following a review of the business several years ago, Kiabi’s management team determined that the company’s supply chain systems infrastructure would not be robust enough to support the future expansion of the business. Kiabi’s proprietary warehouse management system had reached its limit in terms of throughput capacity, optimisation potential and flexibility. Picking waves could not be modified once they were underway, and the system did not offer the required flexibility for customs clearance. Kiabi reviewed the solutions available on the market with a view to helping the rapidly growing company achieve the following goals: Cost reduction and logistics performance improvement, Reduction in order-to-delivery cycle time, Support for Kiabi’s global expansion plans, Centralised execution and better control over the fulfilment of store orders, Optimisation of operational processes, Reliability and scalability of supply chain execution system.

The Solution

Kiabi selected Manhattan’s Warehouse Management solution because it offered a wide and deep functionality that required few custom enhancements. In addition, its technical architecture was consistent with Kiabi’s standards and the company’s broad experience in the fashion industry enabled it to understand Kiabi’s challenges quickly. The multi-site solution roll-out began with the Mâcon warehouse in South-East France. Following completion of the design phase, the Kiabi and Manhattan teams integrated Warehouse Management with the company’s internally developed sales system. As Kiabi’s activities are based on seasons and include a very large number of products, the company conducted a rigorous scenario testing phase before going live. Based on the Mâcon implementation, the Kiabi and Manhattan teams designed a deployment replication model to facilitate installations at other sites. Subsequently, Kiabi implemented Warehouse Management at the Villeneuve d’Ascq warehouse in Northern France. As the Villeneuve d’Ascq facility runs exactly like the Mâcon site, the same level of ‘stress’ testing was not required and this second site went ‘live’ successfully in under a month. Kiabi then deployed the Manhattan solution in Dourges in Northern France and Madrid. The replication model enabled Kiabi to implement the solution in just 10 days at these sites.

Operational Impact

Picking waves which couldn’t be amended by the old system once they had been prepared and launched can now be modified at any time. This helps Kiabi accommodate order changes right up to the time of goods despatch.
The system has comfortably handled a volume growth in excess of 25% in the last two years.
The solution also provided Kiabi with much clearer visibility into its global supply chain operations.
Finally, the approach jointly developed by Kiabi and Manhattan Associates allows Kiabi to rapidly open new sites and effectively support Kiabi’s fast growth.

Quantitative Benefit