Leading Indonesian department store retailer PT Matahari Department Store Tbk (Matahari Department Store) has selected Manhattan Associates to enable new supply chain processes and maximise service levels across its growing omni-channel retail operations.
Matahari Department Store will deploy the latest version of Manhattan’s Warehouse Management Solution (WMS) in five distribution centres (DCs) across Indonesia, leveraging the technology to build brand loyalty amongst customers through better product availability and to increase the profitability of customer orders through a more efficient fulfilment infrastructure.
Matahari Department Store has a deep legacy in Indonesian retail. Beginning its journey in 1958 with a children’s fashion store in Jakarta’s Pasar Baru district, Matahari Department Store later introduced Indonesia’s first modern department store in 1972, establishing itself as a truly national brand.
It currently operates 154 stores in 74 cities across Indonesia, with total retail space of around one million square metres. This is complemented by a growing online presence in MatahariStore.com and a third-party logistics capability in the form of Matahari Nusantara Logistik. It employs more than 40,000 people and partners with approximately 850 suppliers from Indonesia and around the globe.
Keith Jones, Logistics Director at Matahari Department Store said, “Manhattan’s solution will help us manage the growing supply chain complexity associated with running a multi-department, multi-channel and increasingly diverse retail operation. It will help ensure our brands’ products continue to be readily available to our customers throughout Indonesia, no matter how they choose to shop with us – in store or online.
“The solution will streamline operational processes within our DCs and deliver improved visibility of both inventory and data across our supply chain operations, serving as a strong foundation as we build our e-commerce and omni-channel capabilities,” he continued.
Matahari Department Store’s relationship with Manhattan Associates dates to 2006 when the retailer first adopted an earlier iteration of Manhattan’s WMS to run its DC in Balaraja. Its decision to deploy the most comprehensive version of Manhattan’s WMS for Open Systems – at Balaraja, Bandung, Halim, Surabaya and Medan – is based on Manhattan’s supply chain and omni-channel commerce vision and the ability of its solutions to drive margin enhancement in high-volume, high-velocity, high-complexity retail environments.
Manhattan’s local GeoPartner PT. Intramega Global, a warehouse management and automation systems distributor in Indonesia, will work alongside the Matahari Department Store and Manhattan teams on the implementation.
Richard Wright, Managing Director, Southeast Asia for Manhattan Associates commented, “We’re delighted to extend our partnership with Matahari Department Store as it embarks on its omnichannel transformation. Matahari Department Store’s investment in Manhattan’s latest WMS will provide a strong foundation on which the omnichannel retailer can build a world-class supply chain. We and Intramega Global look forward to working with Matahari Department Store’s team to help increase the retailer’s service levels, revenue and profitability.”