Adairs saves AUD $5 million by bringing supply chain in-house

Adairs has reported annual savings of AUD $5 million after bringing its supply chain operations in-house with the implementation of Manhattan SCALE.

The Australian home furnishings and décor retailer undertook a strategic shift away from using third-party logistics providers, aiming to take full control of its supply chain operations to improve cost management, efficiency, and customer experience.

Adairs completed a rapid deployment of the Manhattan SCALE warehouse management system (WMS) within 12 months, going live in July 2024. The company selected Manhattan SCALE after a comprehensive evaluation process, citing its flexibility, automation integration, and ability to manage omnichannel fulfilment.

Justin Dowling, General Manager of Supply Chain at Adairs, said the transition to in-house operations was a pivotal decision for the business. He explained, "Bringing our supply chain in-house was a major decision, driven by our desire for greater operational control and the ability to better serve our customers. We wanted an off-the-shelf, ready-to-go solution that could be implemented with minimal customisation, and Manhattan SCALE has provided the successful technology backbone for this transition, allowing us to streamline operations, improve inventory management, and scale effectively for peak demand."

Following the implementation, Adairs has identified significant operational improvements. The retailer delivered an additional one million units to its retail stores year-on-year, realised a 24% increase in ecommerce order fulfilment, and managed a 17% higher inbound volume since the go-live date.

Adairs' adoption of Manhattan SCALE has enabled the company to consolidate its distribution activities. All orders—whether from ecommerce, physical retail stores, or corporate customers—are now fulfilled from a single distribution centre. This consolidation has improved stock availability and allowed Adairs to optimise its logistics network, contributing to its reported annual savings.

Dowling commented further on the nature of the transformation, stating, "This was not just a technology project, it was a supply chain transformation. From day one, our teams worked in close partnership with Manhattan to develop a solution that would not only meet our immediate needs but also future proof our operations."

Collaboration between Adairs, Manhattan Associates, and project partners was highlighted as essential in designing a system that matched real-world warehouse operations while supporting Adairs' long-term strategic goals.

Adairs placed emphasis on operational input throughout the transition in order to reduce disruptions when the system went live. The company noted that the intuitive interface of Manhattan SCALE improved the speed of training for its warehouse staff, helping ensure a smoother adoption process and making it easier to increase labour capacity during periods of high demand.

Raghav Sibal, Managing Director, ANZ, Manhattan Associates, said that vigilant supply chain management was increasingly important for retailers responding to evolving customer expectations. He said, "Retailers need a supply chain that can support rapid changes in customer expectations while driving operational efficiencies. By implementing Manhattan SCALE, Adairs has taken a proactive approach to modernising its operations and creating a more agile, resilient supply chain. We're proud to have played a role in Adairs' transformation and look forward to supporting its continued growth."

The implementation of Manhattan SCALE marks a notable change in Adairs' supply chain strategy, reflecting a growing trend among retailers to seek greater control over logistics, with a focus on improving service levels and operational resilience while also achieving cost efficiencies.