Forward, intelligence sustainability. These were the terms that were regularly heard by the hundreds of visitors during Exchange 2023, Manhattan Associates’ annual customer and knowledge event. ‘Awesome extravaganza’, as Manhattan calls its own event, took place this year in Cannes. No movie stars, expensive cars or prom dresses, but smart solutions, (logistical) knowledge sharing and inspiration were the ingredients. Not unnecessary in a (consumer) world that is changing rapidly and where downtime can have major business consequences.
Inventory insight reduced
Including when it comes to insight into stock. Even more so than a year earlier, retailers have no idea what the status of their stock is. This is worrying, because anyone who does not have an overview of their stock cannot sell the goods and therefore cannot generate turnover, emphasized Ann Sung Ruckstuhl, SVP & Chief Marketing Officer of Manhattan. Retailers indicate that on average they have accurate insight into their company’s stock 70 percent of the time. That is four percent less than a year earlier when the counter was 74 percent. Henri Seroux, SVP EMEA at Manhattan Associates, also worries: “If you don’t know where a third of your stock is or don’t know what you have at all, you run the risk that a lot of stock will not be sold, will have to be discounted or, in worst case scenario, case is discarded.”
Sustainability
No progress has also been made in the field of sustainability in the past year, as shown by the same recent international omnichannel survey by the software specialist that was conducted at the beginning of this year among 1,200 retailers and 6,000 consumers worldwide. 45 percent of consumers consider sustainability an important factor when choosing a store, compared to 50 percent last year. Compared to older consumers, younger generations are more likely to take into account a retailer’s environmental efforts. 55 percent of 18-24 year olds said this is an important consideration for them. 17 percent of 24-35 year olds went further and said they would actively avoid retailers if they were not environmentally conscious, compared to just 10 percent of over 55s. The Netherlands is one of the most price-conscious countries in this study. When they had to make a direct choice between lower costs and sustainability, Dutch consumers choose the former in almost all cases. This applies to cheaper delivery (65%), a cheaper brand (66%) and a cheaper product (68%).
Flow with the help of smart technology
Challenge enough to keep going ‘forward’. Also in the field of logistics. And to achieve or maintain that forward line, it is important to get into the ‘flow’, Eddy Capel, CEO of Manhattan Associates, told the hundreds of visitors during his grand opening speech. Just as top athletes perform at their best through flow, this also applies to companies. But to achieve that flow you need six qualities, two of which are experience and innovation. And it is those points where Manhattan can help, according to Capel. “By sharing our knowledge and innovations with our customers as effectively and quickly as possible.”
For example, Manhattan today promises a significant upgrade speed of the systems and visibility. Previously you had to wait years for upgrades, now there is an improvement every 90 days. To increase the logistics flexibility of retailers, Manhattan recently launched three different software flavors: no code, low code and your code. Everything happens in the cloud these days. Manhattan relies on application programming interfaces (APIs) to support its cloud-based tools. It allows users to quickly and easily choose the supply chain tools they need. Unified portfolio architecture” removes the need to build data bridges between those products, according to CEO Capel.
Collaboration systems
Unify is another word that was regularly thrown into the audience. Manhattan believes in bundling systems. “A multiplier for your performance,” Capel said to the hundreds of (potential) customers. “We believe that merging various systems can improve the flow of an organization.” For example, the WMS Manhattan WM, which was launched in 2020, has been expanded with a labor management function that should improve deployability and increase productivity by five to seven percent, according to Brian Kinsella, senior vice president of product management. Manhattan offers its WMS and TMS separately, but now also in combination called Manhattan Supply Chain, which results in a better ‘flow’ of goods, according to the product manager president.
Yard management Manhattan
To better serve consumers who want to have more and more control over their parcel, Manhattan now also links its supply chain platform with its Omnichannel platform, which has been expanded with machine learning technology, chatbot and RFID in collaboration with Zebra Technologies. The Yard management, launched in May, is also an example of that Unify belief. Manhattan Active Yard Management solution is a platform that should allow warehouse and transport to work better together. Manhattan believes that uniting the yard decision-making process with intelligence from both warehouse and transportation ensures optimal yard execution, more efficient warehouses and faster and smarter transportation networks.
Need for change
Change is essential to stay relevant, trend watcher Ken Hughes emphasized in his presentation. As a good example, he mentioned Uber, which launched Fix; an on-demand roadside assistance system for motorists. Airbnb and Google Maps, which have defeated Hilton and Garmin respectively, have also successfully secured their place in the ‘race for relevance’. How? “Continuing with solutions that the customer wants instead of getting stuck in old ideas. “Standing still is the fastest way to go backwards in a rapidly changing world.”
Manhattan is working on AI
Manhattan is therefore working on generative artificial intelligence with a large language model. A technology that is quickly gaining ground and offers logistical opportunities. Particularly in terms of speed to gain insight into the operation or to implement improvements. Kinsella: “Instead of digging through dashboards looking for a solution or an answer, we can soon ask the system about the problem, which will then come up with a solution.” The technology is not yet on the market. Capel: “We have successful real proof of concepts. But we are not done yet.” Capel could not and would not say when the technology in combination with the solutions will come onto the market.” But it is clear that it will happen because it is possible and the customer wants it. “In two months, generative AI will have a hundred million users.”