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Customer Snapshot: Overview

Up to 300,000 holiday packages delivered per day

Nobody delivers fresh fruit and luscious snacks like Harry & David. And during the holiday season, that means delivering up to 300,000 packages per day! With so much to coordinate, Harry & David sought out a hands-off approach to automating and streamlining warehouse operations. This vertically integrated, multi-channel specialty retailer was able to add on the SAP® Extended Warehouse Management (SAP EWM) application to their existing SAP solution, proving the worth of the flexible, future-proof SAP Extended Warehouse Management solution they had previously installed.

Company
Harry & David

Revenue
US$1.12 billion

Number of Employees
8,000

Industry
Consumer Products

Partners
LogiStar Solutions LLC

Headquarters
Medford, Oregon, USA

Customer Website
www.harryanddavid.com

Line of Business
Supply Chain

SAP Solutions
SAP ActiveEmbedded, SAP Active Global Support, SAP Extended Warehouse Management (SAP EWM)

With SAP Extended Warehouse Management in place, Harry & David can now ensure delivery of the perfect treat to their customers at all times, even during their busiest season.

Customer Snapshot: History

The Story of Fruit by Mail

Harry & David was America's premier direct marketer of fruit and food gifts in the 1930’s, and is an industry leader today.

Customer Snapshot: Business Model

Making Memories, Sharing Experiences

It's really what Harry & David is all about. The company has a history of delivering happiness with the gifts they create, and their premium fresh fruit and fine gourmet foods that make entertaining deliciously easy. Harry & David enjoys helping people make every day a celebration, and every event a chance to cultivate lasting relationships while sharing food from great recipes.

The Challenge

Constant Growth Brings Common Challenges

Because holiday orders represent 70% of their annual business, delivering up to 300,000 packages a day during the holiday season, the company was concerned about inventory accuracy, shipping costs and ultimately maintaining their high level of customer satisfaction. To achieve this, they decided to reengineer that warehouse management system to streamline operations during this extremely taxing period.

After years of constant growth, Harry & David soon started to face the common challenges of a growing business. To ensure that they could deliver their products to a growing customer base on-time and in superior quality, Harry & David realized that they needed a more flexible and integrated approach for their manufacturing activities and warehouses.

To reduce that identified risk for their distribution network, the company decided to replace two third party warehouse management systems and a custom warehouse management system to bring the entire supply chain on to SAP Extended Warehouse Management.

Previous
Improve the speed and efficiency of the Product Design process
Enable on-the-fly planning and re-planning of manufacturing activities 
Manage multiple manufacturing plants independently, isolating procurement and production by plant
Evaluate cost variances during the course of the month, rather than just at the end of the month
Next
Previous
Reduce time for training new employees on all necessary applications
Next

Enter SAP

The Quest for System Integration

Harry & David was running two separate WMS applications and experiencing typical issues with an interfaced WMS system including interface risk and product visibility issues. In order for Harry & David to provide better service for their customers, an integrated solution was required and that journey starts with an integrated WMS solution. Harry & David chose SAP EWM in order to provide this integration and take advantage of the additional functionality the product offered that they were not using in the previous systems.

When it came down to fulfilling holiday orders, however, the team felt there was still room for improvement. They turned to the SAP Active Global Support organization to help them better cope with holiday demands.

Integration validation was great. Instead of just making recommendations and walking away, the same core people from SAP returned again and again to check results and suggest further improvements.— Heather Bothern, Manager, SAP Applications, Harry & David

The goal: Zero manual intervention for order fulfillment

Enter SAP: The SAP Experience

SAP is the Perfect Pick

Harry & David took great care during the SAP EWM implementation to make sure the system worked well, was stress tested for peak-season volume, and that employees were trained. SAP implementation partner, LogiStar Solutions, also provided top-notch consulting support and logistics expertise.

Our IT staff did a terrific job of turning a challenging situation into one of the glowing successes around Harry & David, and SAP’s contributions were critical to this achievement. We make a great team. — Heather Bothern, Manager, SAP Applications, Harry & David

Better Business

Fruitful Results for Everyone

Harry & David´s implementation of SAP EWM turned out benefits for both the company and their customers alike. SAP EWM has reduced maintenance costs by about 25%, and a significant drop in the number of interfaces has added to the IT time and cost savings. The number of interfaces needed was reduced from around 50 down to about 12.
 
The new streamlined warehouse management system had an immediate payoff, increasing warehouse accuracy by 15%, doubling the rate of put-away confirmations and increasing delivery replications by 70%, even during the busiest time of year.

Harry & David’s customers ultimately benefit the most tangibly from SAP EWM. Better food traceability means faster fulfillment and fresher food at the recipient’s doorstep—who in most cases are receiving it as a special gift.

SAP enables the company to see exactly what the product is, what the availability is, and ultimately helps get it to the end customer on time and as efficiently as possible.

Better Business: Benefits

The Busy Season Doesn’t Phase Them a Bit

Thanks to the new system implementation and modifications, Harry & David no longer need to hire a single extra employee for the holiday season.

In the previous year’s holiday season postmortem, we identified warehouse management as the foremost area we needed to improve. This time it didn’t even make the list. — Heather Bothern, Manager, SAP Applications, Harry & David

Better Business: Run Simple

Growing Into the Future

With SAP in place, Harry & David has the integrated business platform they need to advance operations and improve the overall customer experience. This will increase their customer base and drive future growth. Warehouse performance has improved, even during the busiest times of the year, eliminating the need for seasonal staffing.

Journey Ahead

More Delicious Moments Ahead

Looking into the future, Harry & David intends to further collaborate with SAP to optimize their supply chain in order to fulfill their mission to create delicious moments for their customers. Areas the company looks to address include Global Available to Promise, APO, and Transportation Management.

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