Challenges / Goals:
- Optimize inventory levels without negatively impacting out-of-stocks
- Reduce expired product losses
- Reduce amount of product sold at or below cost in closeouts
- Maintain inventory turns at 8-15 per yr.
- Maintain target days of supply for major suppliers at 21 days
- Gain visibility of inventory down to item level
- Implemented Salient’s Margin Minder® and Salient’s added value consulting services to optimize inventory, improve performance, and track the effects in key sales measures. Integrated aging data from Odom’s Warehouse Management System, with inventory, purchasing, forecasting from System 21 package.
- Reduced days-on-hand inventory from 54.5 to 47.9
- Lowered inventory carrying costs by $4 Million
- Improved cash flow by freeing up idle inventory dollars
- Reduced aged inventory of beer over 365 days from $354,000 to $71,000
- Added several new suppliers
- Impacted bottom line by $750,000