Leading Chinese Pharmaceuticals Retailer and Distributor Lerentang Group Selects Manhattan Associates

Manhattan WMS to support existing distribution infrastructure and Lerentang’s business expansion plans as it seeks to become a 3PL to China’s pharmaceuticals industry

SHANGHAI and ATLANTA (February 03, 2010) –

Global supply chain optimisation provider Manhattan Associates, Inc. (NASDAQ: MANH) today announced that Lerentang Group, a leading distributor and retailer of pharmaceutical products based in Shijiazhuang in the Hebei Province of China, has chosen Manhattan’s Warehouse Management solution (WMS) as the technology backbone to support its distribution operations serving upstream and downstream customers across China. Lerentang Group also sees the technology investment as critical to its business expansion strategy that will see it offer a specialised third party logistics service to China’s pharmaceuticals industry.

Following China’s unveiling earlier this year of a blueprint for health-care over the next decade, kicking off a reform plan to fix the country’s ailing healthcare system and to ensure fair and affordable health services for its 1.3 billion citizens, Lerentang wanted to capitalise on this opportunity by providing a world-class, industry-compliant, distributor and third party logistics services operation to pharmaceutical manufacturers as well as hospitals, medical centres and pharmacies across China.

“Based on a combination of Manhattan’s extensive experience in the pharmaceuticals sector, the expert ability of its solutions to run operations with automated material handling equipment, and its deep understanding of the Chinese market and the companies that operate there, Manhattan is able to provide solutions that meet the specific needs of local enterprises in China,” commented Ms. Zhai Dongmei, vice general manager at Lerentang Group. “In addition, a stable and experienced implementation team is a key differentiator for Manhattan in the market.”

Manhattan’s Warehouse Management solution will be installed at Lerentang’s 215,000 sq. ft (20,000 sq. m.) regional distribution centre (RDC) in Zhengding, near Shijiazhuang City and will be integrated with and direct Lerentang’s automated storage and retrieval systems (ASRS) including conveyors and a pick-to-light system. It will also integrate with Lerentang’s host ERP system. The WMS will enable Lerentang to improve the efficiency of its supply chain operations, reduce overall distribution costs and provide upstream suppliers and downstream pharmacies, hospitals and medical centres with a timely, accurate and high-quality distribution service.

Arnold Consengco, Manhattan Associates’ managing director, North Asia, commented, “We’re very pleased to have been selected by Lerentang and look forward to supporting them as they build a world-class distribution infrastructure to support their pharmaceutical manufacturing as well as retail and medicine dispensing clients. The pharmaceutical industry has some of the most stringent and complicated logistics requirements including strict lot control, regulatory mandates, requirements on storage temperature and humidity and rapid turnover of inventory. As a result, the industry is particularly demanding when it comes to warehouse and distribution management solutions. Having served many other pharmaceutical companies globally, including in China, we believe our people’s experience and our solution’s breadth and depth position us well to effectively assist Lerentang in their supply chain redevelopment programme.”

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About Lerentang Group

Lerentang, founded in 1935 and headquartered in Shijiazhuang, is the longest established pharmaceutical retail and distribution group in the Hebei Province of China and is the market leader in the region by market share and operational scale. The group has over 35,000 square metres (377,000 sq. ft.) of warehousing space, employs more than 1,200 people and in 2008, generated RMB 4 billion in revenue. It is ranked 15th in a list of China’s top 100 pharmaceutical enterprises. For more information, please visit www.leren1935.com
About Manhattan Associates, Inc.

Manhattan Associates┬« continues to deliver on its 19-year heritage of providing global supply chain excellence to more than 1,200 customers worldwide that consider supply chain optimization core to their strategic market leadership. The company’s supply chain innovations include: Manhattan SCOPE┬«, a portfolio of software solutions and technology that leverages a Supply Chain Process Platform to help organizations optimise their supply chains from planning through execution; Manhattan SCALE(TM), a portfolio of distribution management and transportation management solutions built on Microsoft┬« .NET technology; and Manhattan Carrier(TM), a suite of supply chain solutions specifically addressing the needs of the motor carrier industry. For more information, please visit www.manh.com.

Source: Manhattan Associates

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