Tesco Wine by the Case Slashes Delivery Times With Manhattan Associates

Customers now offered next-day service as well as 2-hour time slots

LONDON and ATLANTA (September 02, 2009) –

Global supply chain optimisation provider, Manhattan Associates, Inc. (NASDAQ: MANH), today announced that Tesco has enhanced its wine distribution business with the introduction of Manhattan Associates’ Warehouse Management solution (WMS) at its UK fulfilment centre (FC) for Tesco Wine by the Case at Brackmills, Northampton. Customers ordering wine in case multiples for home delivery via the recently re-launched Tesco Wine website can now opt for next-day delivery as well as continue to book a two-hour delivery window ahead of time in the same way that the Tesco.com grocery shopping service operates. The new service has been enabled through integration of the Manhattan solution with the existing Tesco.com grocery home delivery applications.

As part of a strategic review of Tesco.com’s distribution network for wine delivery, Tesco decided to bring the new service operation under the sole direction of the home shopping division through the transition of its 190,000 sq. ft. DC at Brackmills, replacing a previously shared service arrangement with the stores’ distribution function. As part of the transition, Tesco selected Manhattan Associates’ WMS, which will be used to manage the flow of stock through the fulfilment centre, with inbound supply being sourced largely through integration with the stores distribution operations.

Tesco Direct, the home delivery service for a wide range of Tesco’s non-food products, is already using the Manhattan Associates system at its UK Fulfilment Centre at Daventry (see video clip at www.manh.com/library/tesco_video_case_study.html), a short distance from the Brackmills site, so the extension of the solution to Tesco Wine was a logical decision.

“Choosing Manhattan Associates for Tesco Wine was a straightforward decision following the success of the solution at Tesco Direct,” commented Neil Ashworth, supply chain director of Tesco.com. “Our old in-house mainframe application simply couldn’t deliver the service we want to offer our customers as we move further into the 21st Century. Tesco Direct is already running efficiently using Manhattan Associates and the solution proved to be very easy to reconfigure for the wine operation. We now have far better control of our stock holding and have been able to greatly improve the availability of products for customers. Delivery options used to be four days or more — now we offer next day delivery if requested. Initial feedback from customers has been extremely positive.”

The upgrade from an old in-house solution was carefully managed and completed without disruption to customers. The entire fulfilment centre team was trained before the solution went live and the proximity of the two warehouses meant that many Tesco Direct staff members, already familiar with the Manhattan Associates solution, were able to move between sites. This further eased the transition process.

“We’re delighted with the success we have helped Tesco achieve with this project and to have shown again the strength of our solutions in being able to support the demands of a successful online fulfilment operation,” commented Allen Scott, managing director of Manhattan Associates UK. “We are pleased to be playing our part in the improvement of Tesco’s multi-channel distribution operations which is further improving the shopping experience for more of Tesco’s customers.”
About Tesco Wine

Tesco Wine is part of Tesco.com and offers customers the opportunity to order wine by the case at www.tesco.com/wine. The website also provides special offers, an online magazine and customer competitions.
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 ILS(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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