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RURAL LIFESTYLE RETAILER BRINGS INSIGHT TO ITS WAREHOUSES IN WEEKS AND REDUCES
LABOR $780K

By Alex RamirezNovember 29, 2023March 19th, 2024Customer Stories
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CUSTOMER STORIES


RURAL RETAIL LEADER OPTIMIZES ITS WAREHOUSES IN WEEKS AND REDUCES LABOR $780K 


ABOUT:

 * FORTUNE 300 RETAILER

 * 2K+ STORES ACROSS THE U.S. AND E-COMMERCE CHANNEL

 * 9 D.C.S, 200K UNITS/DAY, 70 OUTBOUND ASSOCIATES/SHIFT

 * MANHATTAN ASSOCIATES WMS AND LMS


> “I CAN’T DO MY JOB AS WELL WITHOUT THE NEW VISIBILITY AND EASE OF MANAGING
> LABOR COGNITOPS PROVIDES.”

– Replenishment Supervisor, Rural Retailer


RESULTS:

 * FIRST WAREHOUSE LIVE IN 2 MONTHS, ADDITIONAL WAREHOUSES IN 2-3 WEEKS. 

 * 44% IMPROVEMENT IN OVERALL THROUGHPUT.

 * $780,000 IN LABOR SAVINGS ACROSS ALL NINE WAREHOUSES.

 * FUTURE: NETWORK-WIDE CENTRAL REPORTING WITH BENCHMARK. 




> “WE ARE HELPING ACHIEVE BETTER PRIORITIZATION AND UTILIZATION, BUT MORE THAN
> THAT, WE’RE HELPING THEM SEE WHERE THE OPPORTUNITY IS,” 

– Josh Thomas, Sr Customer Success Manager, CognitOps 

SEE HOW COGNITOPS CAN HELP YOU MEET YOUR SLAS AND CUT WAREHOUSE LABOR COSTS…

 




This Fortune 300 retailer caters to the rural lifestyle in the U.S. It provides
a range of products for home improvement, agriculture, and lawn and garden
maintenance to meet the unique needs of farmers, tradespeople, and rural
homeowners. Its omni-channel retail distribution network comprises more than
2,000 stores across the U.S.

Recently, its investments in e-commerce, mobile app, curbside, and next-day
delivery kept its sales growing despite the pandemic’s effect on in-person
shopping. The retailer’s drive for continuous improvement put pressure on its
nine-distribution center network to keep up with the accelerating pace. 

The operations team sought a solution to optimize its complex retail and online
sales fulfillment to reduce labor costs while meeting delivery SLAs. 


CHALLENGE: COMPLEX RETAIL DISTRIBUTION OPERATION LACKED VISIBILITY

 * Excel and SCI reports were used to run the operations; manual updates were
   taking supervisor time and slowing the operation.
 * Complex retail and e-commerce operations with competing priorities and lack
   of visibility to bottlenecks and labor needs.

The company uses Manhattan Associates WMS and Labor Management System, which
tracks individual worker performance but doesn’t provide a view of holistic
warehouse performance. In other words, it couldn’t ensure they had the right
labor in the right place at the right time. Instead, supervisors spent
significant amounts of time on Excel and SCI reports. 

The company needed an automated retail warehouse operations solution to improve
visibility and get the most productivity from associates across the operation. 


SOLUTION: QUICKLY IMPLEMENT PICKING MODULE IN ONE RETAIL DISTRIBUTION CENTER,
EXPAND TO FULL NETWORK

 * Implement CognitOps Align Picking module at largest, most complex
   distribution center.
 * Quickly added Inventory and Shipping modules to amplify benefits . 
 * Expanded to full 9 warehouse network. 

The retailer decided to start with its biggest challenge: mastering the volume
and competing priorities of its largest, busiest, and most complex distribution
center. This warehouse handles the retailer’s greatest volume of e-commerce
sales in combination with store fulfillment. The ability to manage shared labor
across channels to get the most efficiency from a combined distribution center
is critical. Solving this would CognitOps Align would pave the way for expansion
across the network. 


RESULTS: IMPROVED RETAIL DISTRIBUTION KPIS

 * First warehouse live in 2 months, additional warehouses in 2-3 weeks. 
 * 44% improvement in overall throughput.
 * $780,000 in labor savings across all nine warehouses.
 * Future: network-wide central reporting with Benchmark. 

Implementing the Picking module at the first warehouse took only about two
months using streamlined data connections for CognitOps’ industry-leading SaaS
solution. After that, the inventory and shipping modules were activated in
weeks. Picking was then extended to the eight remaining sites in the network
with a two week average turnaround for each retail warehouse site. The
implementation timeline for site two and beyond is minimal because CognitOps
could leverage its work on WMS connectivity and query creation from the initial
site, only modifying it as needed for the new sites. 

Since implementing CognitOps, the retailer has seen a 44% improvement in overall
throughput and a $780,000 savings in labor costs. 

“We are helping achieve better prioritization and utilization, but more than
that, we’re helping them see where the opportunity is,” explained Josh Thomas,
Sr Customer Success Manager, CognitOps. 

Next on the roadmap are a daily Performance Pulse metric to help warehouse
managers address labor productivity and utilization issues and a new Benchmark
reporting dashboard that gives executives consistent, accurate, network-wide
visibility. Both were influenced by feedback from the warehouse floor to the
director level.

The company’s operations director supported CognitOps from the initial
selection, partly due to its nature as a startup. He wanted the retailer to have
a voice in the direction of the solution and build a true innovation
partnership. 

“He’s a visionary – not just in understanding what the solution was capable of
at the beginning, but also what it could be. He knew that the data we were
collecting and the models we were building could enable an enterprise-wide
central reporting and operations management tool for them. The collaboration has
only improved our solution – for this customer and our entire customer base.” 


 * PREVIOUS POSTCASE STUDY: GLOBAL BEAUTY RETAILER CUTS WAREHOUSE ORDER CYCLE
   TIME 30%


 * NEXT POSTGARTNER SUPPLY CHAIN HYPE CYCLE: COGNITOPS


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