Background

Duluth Trading Company is a high-quality brand that caters to men and women who lead hands-on lives. When the company decided to build a new, fully automated distribution center in Adairsville, Georgia, they wanted to do it right. They envisioned an omni-capable warehouse with automated receiving, picking, and packing processes, requiring the integration of the Bastian AutoStore System and Manhattan Active Warehouse Management (MAWM) software. With 160,000 bin locations within the AutoStore, an additional 77,000 secondary pick and reserve storage locations, and a 500,000 square foot building, they knew the process would be extremely complex with many moving parts. Duluth turned to outside experts to ensure seamless integration, support their expanding operations, and meet their growing need for data-backed insights.

Objective

Duluth brought on Summit Advisory Team to fill a project management advisory role and oversee the implementation process. The goal was to make sure Manhattan’s software was configured to align with the DC’s operational flow and that it interfaced well with Duluth’s existing ERP software and the new Bastian AutoStore System, identifying and resolving issues along the way. Recognizing the need for real-time data capture, the Summit team brought in EasyPost Analytics to provide actionable insights across operations. This integration enabled timely, data-driven decisions at the warehouse floor level to improve operational efficiency and labor management.

Method

The Summit team managed the project from end to end, working with Duluth, Manhattan, and Bastian to coordinate efforts for a successful completion. The project involved several of the Summit practices, tapping into their broad range of expertise. The team took the following steps to complete the project:

Design and Planning

To kick off the project, the Summit team laid out the steps all the players would take, ensuring full alignment. They mapped out a project plan and set up the development and test environments they would need to accomplish their goals. During this phase they developed a test approach and strategy and scripted out test cases they would use once implementation was underway.

Design Sessions

Summit developed the functional and technical design for the project. This meant determining how they wanted the goods to flow and how the system needed to be configured to accomplish it. Manhattan and Bastian needed to make sure their systems worked together well, and the Summit team filled the role of advisors and listeners so they could build the necessary integrations and QA test cases based on those discussions.

Integration Development

In parallel with the functional and technical design, Summit started development for integration. The process included data mapping, making sure systems were communicating, and accurate code development. The development process was ongoing throughout the project.

Quality Assurance

Once receiving, picking, and packing systems were underway, Summit began the testing process to make sure all was working as it should. They executed full end-to-end testing, from product coming into the facility to shipping, making sure data and statuses were updated correctly. The quality assurance process the Summit team implemented allowed them to ensure that everything was placed where it needed to be and working right, fixing defects as they found glitches to fine-tune the system and make sure the data flow was working well.

Data Capture and Analytics

To address the need for better visibility into warehouse operations, Summit recommended EasyPost Analytics, specifically their Warehouse Analytics, Parcel Visibility, and Omnichannel Analytics modules. EasyPost provided dashboards and reporting tools that allowed Duluth to monitor real-time data and make data-driven decisions on staffing, order backlogs, and overall performance.

Change Management and Training

Early identification of super users and change champions was key to the training effort. These resources were involved in design, testing, and review of training materials. End-user training leveraged hands-on activities rather than a traditional classroom approach, with quick reference guides posted throughout the building for reference, and Duluth has continued to use those materials as they’ve hired new warehouse workers. A comprehensive supervisor training program was also implemented to ensure business ownership going forward.

Results

The Summit team resolved all implementation details quickly, finishing the job and going live before the target date. Though they had planned to slowly ramp up to 20% capacity, they exceeded expectations on day two, reaching that target with ease. They quickly reached 50% capacity, prompting them to tackle a significant backlog from other sites, which they successfully cleared in just six days.

Wes Summers, senior operations manager at Duluth, was impressed by how quickly they ramped up. “We opened on time, we shipped out our first package, actually, a few days early, we brought in our first package a couple days early, and we ramped up our percentage of volume within a week,” he said.
The new warehouse features dashboards in each functional area, allowing on-floor supervisors to monitor performance in real time. Supervisors can access the data from their phones for immediate insights. “We needed to have more on-the-spot, current information,” said Summers. “Now, our leaders on the floor are monitoring this data on the spot. They have it in their hands at any given time.”

The increased visibility provided by EasyPost Analytics has improved their labor management, enabling Duluth to optimize workforce size based on actual demand. With real-time data around warehouse operations and parcel visibility, paired with the efficiency provided by their robotics system, they’ve reduced the need for warehouse workers from 100 to just 30 on average—a 70% reduction in labor.

The changes have led to a significant reduction in their cost per unit (CPU), and Summers shared his thoughts on the project: “Doing it again, I’d absolutely tell myself, we need it!” The project exceeded expectations, and Duluth has implemented a similar process at a second location and is working on implementation at a third location.