Supply chain commerce solutions provider Manhattan Associates said Monday that the global heating and air-conditioning provider Lennox International, has doubled its distribution footprint via a strategic redesign of its supply chain using Manhattan’s transportation management system and warehouse management systems in six U.S. centers.
Lennox moved from a national distribution network to a regional hub-and-spoke network, increasing operating profits by $25 million, the software company said (though it did not provide Lennox’s total operating profit for comparison).
Lennox said its shipping and inventory accuracy has reached 99 percent.
“We turned to Manhattan, not only for their expertise, but because they offered an integrated system — lowering our costs and customer cycle time,” said Gary Bedard, vice president and general manager of Lennox International.
The strategic redesign comes on the heels of Lennox’s annual peak season. Before Manhattan’s implementation, the manufacturer and distributor had minimal-to-no warehouse-level visibility.
“Today, we have visibility to see orders before they print, allowing us to consolidate orders — reducing freight costs and giving us greater control over inventory,” said Keith Nash, vice president, supply chain logistics for Lennox International.