Optimizing Inventory Movement for a Leading Apparel Retailer
A Manhattan WMOS Case Study
ITOrizon helped a major Apparel Retailer with $650 Mil. in revenue to significantly improve operational efficiency in their Distribution Center. By optimizing inventory allocation rules within their Manhattan WMOS platform, the client was able to reduce costs and boost throughput.
1. Customer Challenges
The client utilized the Manhattan WMOS Legacy Platform but faced several challenges where the initial system behavior conflicted with their desired allocation strategy.
The main issues included:
• Redundant Manual Steps: When insufficient inventory was found in the primary picking location, the system caused extra quantities to be picked from Reserve, which then had to be manually returned to Case Pick locations. This was an unnecessary and redundant step.
• Misaligned Allocation: The stock movement rules and wave run behavior were complex, and the initial system setup did not support the intended allocation strategy.
2. Project Objective
The primary goal was to reduce the Wave-to-Ship cycle time and minimize stock movements across various inventory buckets during order picking.
This was specifically targeted by:
• Excluding allocation from the Reserve area to the active MHE (Material Handling Equipment) location during the wave run.
• Leveraging existing inventory flows: moving stock from Reserve to Case Pick and then to the Active MHE location.
3. Solution Offered by ITOrizon
ITOrizon delivered a unique solution based on deep research, process mapping, and agile configuration of the WMOS platform.
Key steps in the solution included:
• Deep Analysis: Conducted a comprehensive study and mapped the “Day in the Life” process to accurately assess pain points and trace configuration controls.
• Rule Elimination: Eliminated unnecessary stock movement rules between reserve and active locations.
• Configuration Adjustment: Removed allocation priorities for Reserve to the active MHE location.
• Task Disablement: Disabled the related system tasks and task rules linked to the removed allocation priorities to ensure the elimination of extra SOP steps and prevent unintended behavior.
By building trust through collaborative problem-solving and transparency, ITOrizon effectively adapted the WMOS configuration to meet the client’s evolving operational needs.
4. Project Outcome and Customer Benefits
By successfully Optimizing Inventory Movement, ITOrizon helped the client achieve substantial, measurable results.
Measurable Results:
• Reduced Labor Cost: A 10% reduction in Picking and Replenishment Labor Cost was achieved during Peak Season.
• Process Efficiency: The unwanted manual “Fill Active” step was eliminated.
• Improved Execution: The total number of task executions was reduced, leading to optimal execution for subsequent wave tasks.
• Operational Clarity: The changes eliminated ambiguity and chaos from the process.
ITOrizon Inc., a global end-to-end IT supply chain ecosystem service leader based in Atlanta, with offshore locations in India and Dubai, has been helping clients ensure success for more than 10 years. We maximize the value of existing ecosystem investments while outpacing the competition with a human-first service delivery client experience. Industry analysts such as Gartner, ISG, and ARC Advisory have recognized us for our high-performance services team, built to scale and delivering strategic advisory, implementation/integration, digital transformation, and managed support services.
