In its bid to expand in China, regional supermarket chain QKL Stores has recently deployed Manhattan Associates’ logistics executions system Manhattan SCALE at its new 211,000-square foot regional distribution center.

The successful implementation of Manhattan SCALE has enabled QKL Stores to increase picking options within the facility (by pallet, carton, split case) and introduce accelerated distribution techniques such as cross-docking and flow-through. Simplified Chinese language support also now ensures data integrity within QKL Stores’ local workforce.

As a result the business has experienced widespread benefits including enhanced distribution capabilities, improved inventory accuracy, reduced inventory-carrying costs and higher productivity within the DC, while from an overall supply chain technology perspective, QKL has reduced the total cost of system ownership. In addition, the company has also streamlined its transportation operations significantly leveraging the Manhattan SCALE system.

“Building and implementing this world-class distribution infrastructure has enabled us to grow our business significantly and improve the efficiency of product delivery, helping us raise the bar on service quality,” said Alan Stewart, chief operations officer, QKL Stores Inc. “We’re now able to work directly with manufacturers, knowing we can accommodate large volumes of any particular product.”

“The results speak for themselves, and prove we made the right decision to work with Manhattan Associates,” continued Stewart. “They have demonstrated time and again that they clearly understand the ambitions of a fast growing company like QKL Stores.”

The enhanced quality control, improved data accuracy and operational productivity improvements enabled by the Manhattan SCALE system have all contributed to delivering a fast return on investment for QKL Stores. It has also enabled the company to reach its ultimate goal of streamlining its entire supply chain and ensuring retail shelves are fully stocked to maximise customer satisfaction, whilst simultaneously facilitating the expansion of the business.

Jeff Baum, Manhattan Associates senior vice president, International (Asia Pacific) said, “Our service capability in China coupled with our advanced technology means QKL Stores is now able to operate its new distribution centre in a very efficient manner and scale its business quickly with minimal changes, as and when it needs to. We’re delighted that our solutions have played such a key role in facilitating QKL Stores’ business expansion programme to date and we look forward to supporting the company’s long-term strategic objective to continue growing the business.”

Manhattan SCALE, built on industry-standard Microsoft.NET technology, can easily be configured to support a changed operational process flow. Its scalability means QKL Stores can continually increase its operational capability and meet new business requirements without incurring further costs.