Warehousing Scents: Parlux Wins with Execution Improvements
Jessica Simpson, Paris Hilton and Rihanna are just a few of the celebrities for whom Parlux Fragrances creates branded fragrances. While the company is ranked amongst the top 100 cosmetic and fragrance companies in the world (its products are sold at well-known department stores such as Belk, Macy’s and JCPenney), it is still a relatively small operation.
Parlux is located in Fort Lauderdale, Fla., but the company recently relocated its distribution center (DC) to a 200,000-square-foot facility in New Jersey to be closer to the third-party fillers that bottle its products. While the new DC provided more opportunities to increase productivity, other issues were getting in the way.
Retail Requirement Challenges
To compete on a high level playing field, it’s essential for Parlux to deliver quality products with a reasonable cost and timeframe. But the company’s existing warehouse and transportation system couldn’t keep pace with changing customer demands.
“Compliance with our top retailers had become a huge issue for us,” says Jane Hershey, vice president of Information Technology. “Labeling, transportation, palette processes and other needs were not being met.”
Other compliance demands required Parlux to consolidate and pack multiple units into different cartons. For example, Macy’s wanted more products in each carton to reduce its transportation expenses.
Parlux was also carrying higher inventory levels at the larger DC, creating more problems. It had to shut down operations for four days to conduct a physical inventory, which cost the company lost revenues and nearly $60,000 in temporary personnel expenses. The manual inventory process also generated inaccuracies and waste.
“Our search for a warehouse solution became a top priority,” says Hershey.
The company wanted to partner with a true warehouse provider that was focused on supply chain solutions and committed to research and development. Four RFPs were submitted and carefully evaluated before Parlux selected Manhattan Associates’ Warehouse Management.
“Warehouse Management is a turnkey, flexible solution that’s ready to roll with minimal modifications, and we were impressed by how heavily invested the company is in research and development,” says Hershey.
Battling Industry Goliaths
Because Parlux has a small IT shop, it relied on the warehouse management solution to battle industry heavyweights.
“Manhattan works with large corporations to solve their supply chain challenges, but we operate on a smaller scale,” says Hershey. “Their team treated us with equal attention making sure the solution fit our operations perfectly.”
Manhattan provided the necessary conversion programs to get Parlux up and running quickly and efficiently.
“We intended to start out slow, processing 10 to 20 pallets,” said Hershey. “But we got slammed with a 130 pallet order from Federated. Without Warehouse Management we would have never pulled it off.”
The order went out in less than three days, meeting all of the retailer’s packing requirements. In fact, Parlux can comply with all its customers’ needs more efficiently than ever.
In addition, the company has completely eliminated its costly inventory processes and manual reports. Now, Parlux is well positioned to expand its operations and enjoy intoxicating success.
FAST FACTS
Company at a Glance:
For more than 20 years, Parlux Fragrances has designed, manufactured, marketed and distributed prestige fragrances and related products in more than 90 countries.
Losing Grip
Parlux performed costly, physical inventories and its existing warehouse management system couldn’t keep pace with changing customer compliance requirements.
A Chance to Compete
With a new warehouse management system, Parlux can now comply with retailer requirements and match competitor’s capabilities.
Parlux is located in Fort Lauderdale, Fla., but the company recently relocated its distribution center (DC) to a 200,000-square-foot facility in New Jersey to be closer to the third-party fillers that bottle its products. While the new DC provided more opportunities to increase productivity, other issues were getting in the way.
Retail Requirement Challenges
To compete on a high level playing field, it’s essential for Parlux to deliver quality products with a reasonable cost and timeframe. But the company’s existing warehouse and transportation system couldn’t keep pace with changing customer demands.
“Compliance with our top retailers had become a huge issue for us,” says Jane Hershey, vice president of Information Technology. “Labeling, transportation, palette processes and other needs were not being met.”
Other compliance demands required Parlux to consolidate and pack multiple units into different cartons. For example, Macy’s wanted more products in each carton to reduce its transportation expenses.
Parlux was also carrying higher inventory levels at the larger DC, creating more problems. It had to shut down operations for four days to conduct a physical inventory, which cost the company lost revenues and nearly $60,000 in temporary personnel expenses. The manual inventory process also generated inaccuracies and waste.
“Our search for a warehouse solution became a top priority,” says Hershey.
The company wanted to partner with a true warehouse provider that was focused on supply chain solutions and committed to research and development. Four RFPs were submitted and carefully evaluated before Parlux selected Manhattan Associates’ Warehouse Management.
“Warehouse Management is a turnkey, flexible solution that’s ready to roll with minimal modifications, and we were impressed by how heavily invested the company is in research and development,” says Hershey.
Battling Industry Goliaths
Because Parlux has a small IT shop, it relied on the warehouse management solution to battle industry heavyweights.
“Manhattan works with large corporations to solve their supply chain challenges, but we operate on a smaller scale,” says Hershey. “Their team treated us with equal attention making sure the solution fit our operations perfectly.”
Manhattan provided the necessary conversion programs to get Parlux up and running quickly and efficiently.
“We intended to start out slow, processing 10 to 20 pallets,” said Hershey. “But we got slammed with a 130 pallet order from Federated. Without Warehouse Management we would have never pulled it off.”
The order went out in less than three days, meeting all of the retailer’s packing requirements. In fact, Parlux can comply with all its customers’ needs more efficiently than ever.
In addition, the company has completely eliminated its costly inventory processes and manual reports. Now, Parlux is well positioned to expand its operations and enjoy intoxicating success.
FAST FACTS
Company at a Glance:
For more than 20 years, Parlux Fragrances has designed, manufactured, marketed and distributed prestige fragrances and related products in more than 90 countries.
Losing Grip
Parlux performed costly, physical inventories and its existing warehouse management system couldn’t keep pace with changing customer compliance requirements.
A Chance to Compete
With a new warehouse management system, Parlux can now comply with retailer requirements and match competitor’s capabilities.