supply chain

Topics: Supply chain management, Inventory, Warehouse Pages: 6 (1056 words) Published: October 8, 2013
CUSTOMER CASE STUD Y

“ e were able achieve our goal of a 10-15% 
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reduction in freight spend after just six months 
of live runtime on the system.”
Eric Hartman, Senior Director of Logistics
Papa John’s

Papa on the Platform

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Hold the Anchovies: Papa John’s Pizza Orders “Optimization Supreme” With Manhattan’s Supply Chain Process Platform

Headquarters: Louisville, KY
Warehouses: 10
Manhattan solutions: Replenishment,
Transportation Procurement, Transportation
Planning & Execution, Warehouse Management,
Supply Chain Intelligence

Challenge:
Company growth out-paced supply
chain’s ability to maintain inventory
and supply restaurants efficiently
and cost-effectively.

Solution:
Manhattan Supply Chain Process
Platform provided the perfect solution
for optimizing all replenishment,
inventory and performance operations
at Papa John’s.

Result:
Improved overall visibility, reduced
outside storage costs and inventory
levels, improved DC efficiencies and
transportation utilization, reduced
mileage and labor costs.

W

hen you’re one of the largest pizza companies in the world, with more than 3,000 restaurants, maintaining efficient, cost-effective operations throughout your supply chain is essential to continued success. Even though growth was on the fast track, Louisville, Kentucky-based Papa John’s International, Inc. was still hampered by supply chain inventory, visibility and accuracy challenges that were impacting its businesses.

“We were having to use outside storage for inventory that ended up being written off because its shelf life ran out before we could ship it to the restaurants,” says Susan Kinder, director, operations services. “That created a domino effect that caused us to pay too much for everything in the supply chain. But without visibility, we had no way of knowing how those truckload orders were impacting everything else.”

The company was also facing what Kinder calls “a perfect storm” of substantial increases in commodity prices, fuel and the minimum wage—three critical elements in the food and restaurant industries. Complicating those challenges were Papa John’s ongoing limited-time consumer offers, which require immediate supply chain responses to temporary spikes in demand. Without adequate performance metrics or a system to provide operational guidance, all of these challenges were being addressed manually with spreadsheets, maps and decisions based on personal experience.

“Without the tools to track and optimize supply chain functions, we were leaving money on the table at every turn. We needed a solution to align all the facets of the supply chain in order to reduce inventory levels and eliminate outside storage and inventory write-offs,” Kinder explains.

PAPA JOHN’S SUPPLY C H A I N C A S E S T U D Y | Manhattan SCOPE

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.
Eric Hartman, Senior Director of Logistics

Papa John’s Chooses a Full Five-Course Package from the
Manhattan Menu
After a thorough review of possible sources, Papa John’s selected Manhattan Associates and a comprehensive package of its
supply chain solutions:
• Replenishment
• Transportation Procurement
• Transportation Planning & Execution
• Warehouse Management
• Supply Chain Intelligence

“We have a small IT staff, so we couldn’t afford to spend time integrating solutions from several different vendors to achieve our goals,” said Kinder. “It was also important to find a best-of-breed partner we could grow and evolve with. That’s why we chose Manhattan.”

In addition to expertise in planning and procurement and its carrier and fleet management offerings, Manhattan Associates was selected for the seamless integration and coordination
made possible by its...
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