Solution Profile: UK-based retail provider implements new WMS 23,000 SKUs, 120,000 square feet Accuracy level hits 99.4% Full location control achieved SCE Provider: Manhattan Associates

With more than 60 shops in Heathrow, Gatwick, Stansted, Glasgow, Edinburgh, Aberdeen and Southampton airports, World Duty Free, a wholly owned subsidiary of BAA plc, is the largest airport retailer in the UK. In addition to the standard stores that sell both duty- and tax-free goods, including high quality, brand name liquor, tobacco products, fragrances and other luxury items, World Duty Free also operates specialty airport stores.

Dealing with Complex Requirements
All stores are in operation 365 days a year, some are open 24 hours per day, increasing the complexity of World Duty Free's distribution operations. The tax implications on duty free goods further complicates distribution processes by requiring 100% inventory accuracy and complete end-to-end visibility into the movement of goods. As part of a corporate-wide logistics strategy, World Duty Free elected to replace its warehouse management system and install a supply chain execution (SCE) system to improve accuracy and product availability and, ultimately, increase sales.

A Phased-In Solution
World Duty Free began implementing the system with its tobacco product line and expanded category by category until the entire distribution center (DC) was utilizing this solution. The Company also implemented radio-frequency technology, further improving the speed and accuracy of product movements and eliminating the many manual procedures previously in place.

"The SCE solution has helped us meet the growing demands of our customer base, while simultaneously meeting our stringent inventory accuracy demands," David Hunt, World Duty Free.

Accuracy, Visibility Improve Operations
In addition to real-time visibility, World Duty Free has seen increased productivity and reduced leakage and duty penalties, both results of improve accuracy. This accuracy, which increased from 98.4% to 99.4%, has helped ensure that goods are readily available for stores. The transition from weekly to daily stock positions has also given World Duty Free the confidence to hold less stock in the DC, knowing they can react more quickly to demand.

"Prior to the new SCE implementation, we were often unable to meet 3-4% of store demand because of the lack of real-time visibility into our DC. The SCE solution has resolved this issue and given us full location control," said David Hunt, Logistics Director for World Duty Free.

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