Adairs Introduces State-of-the-Art Technological Framework to Transform Supply Chain

Quick Overview

• Adairs has transitioned from a third-party logistics framework to managing its supply chain directly.
• This change brings enhanced oversight of costs, efficiency, and customer interactions.
• Implemented Manhattan Scale warehouse management solution over the past year.
• Realized a 24% boost in ecommerce order fulfillment rates.
• Handled 17% more inbound volume, supplying one million additional units to retailers.

Adairs’ Strategic Transformation in Supply Chain Management

The Australian homewares and decor retailer Adairs has made a significant move by shifting from a third-party logistics (3PL) framework to overseeing its supply chain internally. This strategic alteration aims to improve operational oversight, cost efficiency, and customer service.

Image credit: Adairs

The Impact of Manhattan Scale

To support this transition, Adairs adopted the Manhattan Scale warehouse management system over a 12-month timeframe, going live in July of the previous year. This system has been crucial in optimizing operations, enhancing inventory management, and adapting to peak demand.

Noteworthy Achievements and Cost Efficiency

Post-transformation, Adairs has reported an additional one million units delivered to retail locations compared to the prior year. Ecommerce order fulfillment surged by 24%, and the volume of inbound goods processed increased by 17%. Centralizing order fulfillment in a single distribution center has also resulted in considerable cost efficiencies.

Conclusion

Adairs’ initiative to regain oversight of its supply chain has proven to be transformative, delivering enhanced efficiency, notable cost reductions, and improved customer satisfaction. By utilizing state-of-the-art technology, the retailer has positioned itself to more effectively meet customer needs and manage increased demand.

Q: What was the main reason for Adairs altering its supply chain model?

A: The main reason was to gain improved operational oversight, enhance efficiency, and elevate the customer experience.

Q: Which technology did Adairs adopt to facilitate this change?

A: Adairs adopted the Manhattan Scale warehouse management system to assist the transition.

Q: What advancements were noticed following the supply chain transformation?

A: Adairs reported delivering one million additional units to stores, a 24% rise in ecommerce fulfillment, and a 17% increase in processed inbound volume.

Q: How has this change affected Adairs’ cost savings?

A: By fulfilling orders from a single distribution center, Adairs has realized substantial cost savings.

Q: When did the new warehouse management system become operational?

A: The system became operational in July of the previous year after a year-long deployment.

Q: How has the customer experience benefitted from the transition?

A: The transition has enabled Adairs to enhance inventory management and streamline operations, thereby improving the overall customer experience.

Q: What is the function of the single distribution center in Adairs’ updated supply chain model?

A: The center centralizes order fulfillment for all channels, resulting in cost effectiveness and improved operational efficiency.