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Hawkeye Foodservice Reduce Inventory With Manhattan Associates Assistance

ATLANTA (December 7, 2010)—Following a significant growth period, Hawkeye Foodservice planned to upgrade its supply chain network in order to increase the number of inventory turns per year by 66 percent and to tighten its inventory to match customer and economic demand. Hawkeye selected Manhattan Associates' Replenishment solution from the Inventory Optimization suite of the Manhattan SCOPE(R) supply chain portfolio.

"We looked at numerous solutions, but Manhattan's really caught our attention," said Drew Beck, vice president of Hawkeye Foodservice. "The robust capabilities inherent in Replenishment allow us to make inventory management a key competitive advantage."

One month after starting to use Replenishment, Hawkeye's was $2.5 million, 15 percent lower than it had been at the same month the prior year. Inventory turns had increased by 36 percent, and—with tighter control of its SKUs— the company was able to achieve labor efficiencies, which further increased cost savings. Now, Replenishment enables Hawkeye to evaluate the deals and incentives for additional inventory offered at trade shows throughout the year to determine the best return on investment for each offering.

"Managing our distribution center efforts has really turned from an art to a science with Replenishment," Beck explained. "We can run 'what-if' scenarios and accurately compare and predict costs to determine the most efficient methods of boosting our business."

Manhattan's Replenishment solution uses advanced forecasting methods to automatically sense shifts in market demand and adjust inventory levels in distribution centers appropriately. The Manhattan SCOPE portfolio is developed on a Supply Chain Process Platform that facilitates collaboration among applications to address specific supply chain requirements. Manhattan SCOPE solutions are designed to seamlessly optimize day-to-day processes from one common interface, in real time.

Hawkeye Foodservice Distribution, Inc. is one of the largest broad-line distributors of foodservice products in the Midwest. Hawkeye distributes 10,000 types of food and related items to vendors from four distribution centers—located in Coralville, Iowa; Danville, Ill.; Wright City, Mo. and Fairmont, Minn.—totaling 358,000 square feet.

To read the Hawkeye Foodservice case study, please visit http://www.manh.com/sites/default/files/files/MANH-Hawkeye_CaseStudy.pdf

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