Crocs Optimises Supply Chain Operations with Manhattan Associates
Crocs, Inc., recognised around the world for their iconic Classic Clog, entered the Covid-19 pandemic with incredible momentum. That momentum was not only maintained but increased as demands for the iconic footwear continues to accelerate to this day.
To meet growing levels of demand, Crocs is evolving its own supply chain network according to Mike Feliton, Senior Vice President and Chief Information Officer at Crocs, “In addition to expanding our network in the United States and Europe with our own distribution centres, we are looking at ways to further expand our reach in both Europe and Asia.”
The Manhattan Warehouse Management System (WMS) solution plays a crucial role in optimising Crocs’ supply chain. “We are looking for global partners who understand our markets and consumers. Manhattan Associates has a team of experienced professionals who know how to use technology to solve problems in retail, eCommerce and distribution,” says Feliton.
What makes the Crocs supply chain complex is the large number of different flows that Crocs DCs handle.
“The number of online orders has increased tenfold in five years. Often it is one or two pairs of shoes with a handful of Jibbitz in different shapes and colours. Processing those orders can be very labour-intensive. We have to change gears quickly and continuously work on process improvement and capacity expansion in order to be able to absorb the online growth,” says Dennis Boor, Senior Director Distribution and Logistics at Crocs Europe BV.
Boor relies heavily on WMS: “First of all because it is a very reliable and stable system, but also because of the ease with which we can control all those different flows. As clients’ expectations rise and our flows and processes change as a result, we can easily adjust the configuration in WMS.”
In order to be able to pivot quickly, Boor’s team remains in close contact with the commercial team. Their forecast provides insight into the expected demand and is prepared for those demand spikes by utilising Supply Chain Intelligence, an add-on from Manhattan Associates. “With this tool, we can analyse the data from the WMS and make data-driven decisions. For example, what does the demand mean for our fast movers and slow movers? We also use Manhattan’s labour management solution to gain insight into the performance and competencies of employees. This is crucial to be able to respond quickly, now and in the future. Because of the rapid growth and dynamics in the market, we have to keep monitoring whether we can still manage the workload and, if necessary, distribute the workload better. Our supervisors and team leaders have real-time information at their fingertips with labour management.”
Boor also relies on the high availability and stock accuracy of the system. “Whatever we think we can sell from stock is actually in stock. And when we receive an order, the chance of missing it is very small, making our operation efficient and reliable.”
