Align investment with demand to drive profits

Balancing inventory can be a daunting challenge—even small

variances in demand or lead times can have big repercussions.

Optimizing inventory across all channels ensures your goods

are where they’re needed most—not forgotten in a warehouse

or reserved for stores while your web customers receive out-of-

stock messages.

Manhattan’s Inventory Optimization

solutions are architected to ensure that

demand drives critical supply chain

processes so you gain a profitable

advantage on both the ‘buy side’ and

the ‘sell side.’

These solutions will enable you to efficiently manage your

demand forecasting, buying and fulfillment processes from

both a service and a profit-oriented point of view. Set channel-

specific service levels so that web, call center and store orders

can each be filled from the sources and at the times you

determine. See inventory across your entire network and take

the guesswork out of forecasting and replenishment, no matter

how many channels, products or outlets you have.

This powerful suite is predicated on synchronizing supply and

demand simultaneously to increase revenue and profitability

with the lowest inventory investment possible.

“Manhattan solutions allow us to manage inventory levels accurately, efficiently and more dynamically based on actual need—and that has resulted in our being able to

reduce overall inventory levels.”

— Papa John’s

The suite includes:

n Demand Forecastingn Replenishment n Multi-Echelon

Inventory Optimization n Vendor-Managed

Inventory

www.manh.com

Inventory Optimization

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Whether you’re in wholesale or retail, inventory is typically the largest, continuous

investment you make—and therefore a significant factor in profitability. Manhattan’s

holistic approach to managing the inventory investment for an enterprise

enables us to exploit data transparency up and down the supply network,

leveraging advanced mathematics to consider all variables across the supply

chain. And, when economic fluctuations occur, our solution can be reconfigured to reflect

changing priorities of the enterprise. This is key because better buying is essential to

achieving a better return on investment.

n Demand Forecasting The concept of demand forecasting may seem

simple, but in reality, it’s not so easy to manage the forecasting process—particularly for companies that forecast for millions of SKUs. You want to minimize your inventory investment to avoid markdowns, reshipping costs and lower profits, yet need enough available to keep customers happy.

Demand Forecasting is a sophisticated, yet easy-to-use solution to help you anticipate demand and simplify forecasting complexities. User-friendly tools help you manage infinite combinations of locations, products and forecasting models; differing time horizons and forecasting methods for assortment, financial and replenishment planning; distorted historical data; seasonal variations and exceptions. Manhattan’s solution provides a single source for statistical demand forecasting across the enterprise, tackling four key areas to ensure accuracy:

Demand cleansing ensures forecasters won’t be misled by anomalies caused by promotions, markdowns, weather or errors.

Seasonal profiling identifies trends and seasonal patterns to define the selling curve for a time period, product and location.

Demand forecasting uses our Unified Forecasting Method™ (UFM) to dynamically sense demand and adapt forecasting components to fit the demand signal that gives the best forecast.

Exception management builds in flexibility to adjust logic and business rules to enable automatic detection and self-correction of many problems.

Better demand forecasting helps top-line sales because you’re in-stock more often, boosting service levels without increasing safety stock. Better forecasting also reduces forecast variance, another way to reduce safety stock and your overall inventory investment.

Features + Functionsn Generate and maintain forecasts at different levels of

product and location nodes n Leverage built-in demand cleansing n Sense trends and demand patterns and respond with the

dynamic, adaptive Unified Forecasting Method n Capture seasonal patterns and properly account for them

in the forecast through advanced seasonal profilingn Use advanced exception management to automatically

detect and self-correct problems

n Replenishment Optimizing replenishment offers tremendous

opportunities to free up working capital. The challenge is controlling costs while ensuring items are in stock when customers want them. With our solution, you can predict

“Manhattan Associates’ DemandForecasting and Replenishment solutions have not only allowed us to reduce inventory; they are enabling us to better understand the value of our stock-holding position at any moment in time. Furthermore, the process improvements we have seen are allowing us to significantly improve productivity.” — Alliance Boots

ThePayoff Inventory Optimization Solution Suite > The Modules

WHYMANHATTAN?1

4

2 53

Reduce inventory investment 10-15%

Serve more channels without additional capital investment

Increase inventory turns Drive top-line sales through improved forecast accuracy with our proprietary UFM™—saving millions in inventory costs.

Improve in-stock performance

Manhattan’s Inventory Optimization Institute has trained over 1500 buyers

Selling drives revenue. Better buying drives profit.

“ The Manhattan Associates’Replenishment solution has enabled us to reduce our inventory by $60 million with the right balance of products in our distribution centers.”

— O’Reilly Auto Parts

DID YOUKNOW?

PUT YOUR INVENTORY TO WORKThe world’s TOP 4 pharmaceuticalwholesalers useManhattan’s Demand Forecasting and Inventory Optimization to manage inventory investment to support $340 billion+ in pharmaceutical sales annually.

Manhattan Inventory Optimization:

Only Manhattan has customer-centered Supply Chain Commerce solutions that balance profit and performance while growing revenue and relationships.

inventory needs more accurately and adapt to changing demand patterns across the network. Increased fill rates and elevated customer service can be achieved while reducing inventory investment.

Replenishment meets the needs of complex, multi-tiered supply chains, with additional capabilities included in our easily integrated Multi-Echelon Inventory Optimization solution. It provides visibility into total network inventory, so you know what to order, how much to order and when to order for every location and avoid out-of-stock situations.

A state-of-the art statistical forecasting engine combines proven forecasting techniques with demand cleansing, day-of-the-week and seasonal profiling tools to generate the highest return on investment—so you can increase inventory turns, optimize service levels and reduce inventory.

Features + Functionsn Optimize cross-tier policies to synchronize DC and store

level inventory needs n Use ‘what-if’ scenarios to evaluate alternative safety

stock strategies n Balance service level goals across multiple channels

of demand n Identify exceptional buying opportunities n Facilitate collaboration with suppliers and

warehouse operations

n Allow purchasing resources to focus on vendor analysis and negotiations

n Reduce negative impact of slow movers by categorizing them for special replenishment approaches

n Redistribute products when there are inventory imbalances

n Multi-Echelon Inventory Optimization Multi-Echelon Inventory Optimization helps you

manage the most complex supply chain inventory challenges by eliminating the use of conventional single-echelon systems in multi-level distribution networks. The solution solves problems that can occur when a network has multiple nodes/echelons between the supplier and end point. You can automate the recognition and resolution of conflicts among the echelons involving planning, forecasting, replenishment, service level goals, overstocks and inventory allocations.

Most replenishment decisions for multi-echelon inventory focus on the store level without considering

the distribution center level. Multi-Echelon Inventory Optimization integrates with Manhattan’s Replenishment solution to synchronize replenishment decisions throughout the enterprise.

Features + Functionsn Optimize inventory across all levels of the distribution

networkn Use a single solution for both store and upstream

distribution centers n Respond quickly to changes in customer demand at

the end distribution point and synchronize cascading impacts at upstream levels

n Vendor Managed Inventory It’s no secret that product availability is essential to drive revenue—if a product isn’t in stock, you lose

sales and eventually market share. Vendor Managed Inventory ensures the right product is available at the right time. This replenishment solution grants your suppliers access to your inventory data so they can manage product shipments and improve in-stock performance. It also helps trading partners work together more effectively to optimize inventory levels by dynamically determining the best time and location to send product—and how much of a particular product to produce.

Your trading partners can place orders, receive shipments, invoice and pay bills. Because the process is automated, there is minimal need for an on-staff inventory analyst, just someone to manage exceptions. With this seamless automation:

Suppliers receive earlier notice of upcoming demand, allowing them to more efficiently plan production; provide better on-time delivery rates and reduce selling/delivery costs; reduce raw material and finished goods inventories; and purchase goods more strategically.

Wholesalers can operate with less inventory, increasing their margins; enhance customer loyalty with value-added services; and deploy labor and other resources more cost-effectively.

Retailers reduce inventory costs and stock-outs; increase sales and profit; and minimize replenishment labor costs.

Most importantly, customers buy what they want, when they want it, which makes everyone more profitable.

Features + Functionsn Build closer working relationships with key trading

partners at multiple levels n Provide suppliers insight into upcoming demand and

stay a step ahead in production planning n Enable wholesalers to provide better service with

reduced inventory and increase sales margins n Improve in-stock performance and lower

replenishment costs for retailers

“ The company has experiencedlabor reduction of 25% and stock-out and inventory investment have improved… All of this was done without compromising fill rates…We liked the workflow, the way the product integrated with our internal host and WMS systems, and flexibility of having so many settings. In terms of capability, it’s akin to upgrading from an Escort to a Ferrari.”

— Lakeshore Learning

Inventory Optimization

Inventory Optimization Modulesn Demand Forecasting n Replenishment n Multi-Echelon n Vendor Managed Inventory

As part of Manhattan SCOPE,® our Inventory Optimization suite of solutions aligns investment with demand across your multi-echelon network to drive profitability.

Manhattan SCOPE® is the only portfolio of supply chain commerce solutions built on a common technology platform available on the market today. SCOPE leverages the investments we’ve made in our Supply Chain Process Platform™ to deliver both the traditional bottom-line benefits associated with supply chain improvements and the top-line revenue gains created by commerce initiatives.

SCOPE provides Supply Chain Solutions to optimize efficiency and performance and Commerce Chain Solutions to seize opportunities for revenue growth, complemented by Visibility and Insight applications to support functional capabilities across the platform.

Platform-based SCOPE is the only solution expressly designed to help you capitalize on the opportunity of Supply Chain Commerce.

Learn more about Manhattan Associates and our solutions:North & South America + 1 877.596.9208 n Global + 44 (0)1344 318000 n www.manh.com

© 2013 Manhattan Associates, Inc. All rights reserved.

Manhattan Associates, Inc. brings companies closer to their customers. We design, build and deliver market-leading Supply Chain Commerce solutions that drive top-line growth by converging front-end sales with back-end supply chain execution and efficiency. Our software, platform technology and unmatched experience help our customers around the world adapt to the challenges of the omni-channel marketplace. For more information, please visit www.manh.com

Manhattan Associates is committed to developing supply chain solutions that foster environmental stewardship.