ITP.net reported today that Supply chain software provider Manhattan Associates has struck a deal with Saudi retail giant Al-Azizia Panda to implement a number of solutions at the retailer's new Riyadh distribution centre.

The new 65,000 square metre facility will use Manhattan Associates' warehouse management solution for open systems, slotting optimisation, labour management and performance management solutions.

"We selected Manhattan Associates not only because of its scope and its compatibility with such a wide range of hardware and software systems, but because of our confidence in the company," explained Peter Nicolaas, head of supply chain at Panda.

"Many of the international vendors are just finding their footing in the Middle East, so it was essential to select a partner who was already committed to and had experience in the region. Manhattan Associates impressed us with its team and its approach and was recommended by other major retailers around the globe. We had confidence that we were buying into a long-term relationship rather than just a package," he added.

The warehouse management and slotting optimisation solutions will go live in June 2006, with labour management and performance management to be implemented in a second phase later in the year. RF and voice equipment will also be installed as part of the first phase.

Steve Smith, VP EMEA at Manhattan Associates, said: "To be working with Panda as it heads the vanguard of retail business in the Saudi Kingdom is a great opportunity for us. We look forward to supporting Panda and helping the company to grow as it opens further distribution centres in 2007 and 2008."

Panda is the largest food retail chain in Saudi Arabia with 51 stores and more than 6,500 employees. The company's existing distribution centre in Riyadh is being replaced to support the retailer's aggressive expansion plans. Panda also plans to open its first store in Dubai in April 2006.

Panda looked at a variety of ERP solutions but decided that the compromises in functionality these required were too great. The company has instead opted for an integrated best-of-breed supply chain solution from Manhattan Associates that could interface with the existing JDA merchandising system.