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Darice crafts distribution solutions with Manhattan SCALE™
Technology Category
- Functional Applications - Warehouse Management Systems (WMS)
- Functional Applications - Transportation Management Systems (TMS)
Applicable Industries
- Retail
- Consumer Goods
Applicable Functions
- Warehouse & Inventory Management
- Logistics & Transportation
Use Cases
- Warehouse Automation
- Fleet Management
- Supply Chain Visibility
Services
- System Integration
- Software Design & Engineering Services
The Challenge
Increased costs and decreased capabilities drove Darice to seek a new solution for their warehouse management. The existing ERP system, installed in 2002, could not keep pace with the company's growth and presented several operational challenges. It was costly to make system adjustments, which hindered the company's ability to react swiftly to changing customer requirements for volume, labeling, transportation, and picking. Additionally, the system had difficulty extracting information and overall performance issues. Darice also wanted to strengthen transportation functionality and make other enhancements, but felt the ERP-based warehouse management solution could not scale to future growth. The overall cost of ownership was becoming too high, and the efficiencies needed were not possible. Furthermore, Darice wanted to explore opportunities similar to third-party logistics, where they could provide distribution services for smaller companies.
About The Customer
Darice is a family-owned business established in 1954 and is the largest full-line craft wholesaler and distributor based in the United States. The company produces more than 80,000 products, including floral, scrapbooking, jewelry, seasonal, wood, wicker, and much more. Based in Strongsville, Ohio, Darice sells its goods through wholesale channels and also owns and operates a retail chain (Pat Catan’s) and has a thriving web business. Despite being a family operation, Darice is a major global competitor with a wide variety of products and capabilities. The company has state-of-the-art facilities to develop, produce, and distribute its numerous craft lines. Its warehouse and distribution facilities consist of more than 750,000 square feet, with a 12,000 square foot showroom. Each day, Darice receives five to ten trucks with 6500 cases and processes 3000 orders and up to 40,000 order lines. The pick accuracy of all outbound orders is 99.99%.
The Solution
Darice leveraged an outside consulting firm to help sift through solution providers and develop a functionality criteria list. The company reviewed 20 companies and narrowed the field to four, including Manhattan Associates and the incumbent provider. Eventually, Darice chose Manhattan SCALE: Supply Chain Architected for Logistics Execution. The solution supports both wholesale and retail fulfillment processes, work order functionality, and domestic and import inbound processing. Darice now employs various SCALE components, including Trading Partner Management, which replaces manual reporting processes with real-time performance data. Labor and Performance Management tools help improve operations and reduce costs, while Transportation Execution helps manage logistics activities, including inbound shipments from suppliers and outbound shipments to customers around the globe. The rapid deployment capability of Manhattan SCALE allowed for quick and efficient installation throughout Darice's facilities. The company gained the flexibility to manage changes in its fulfillment processes and streamline operations, enabling them to react more quickly to changes in transportation, documentation, or labeling requirements. The technical environment is now less expensive to operate, lowering the total cost of ownership. With Manhattan SCALE, Darice is well-positioned to expand its offerings to include seamless distribution services and handle any future challenges.
Operational Impact
Quantitative Benefit
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