The Odom Corporation Success Story
Without striving for continuous improvement, today’s successes become tomorrow’s has-beens. That is precisely what the Odom Corporation sought to avoid.
As the premier beverage wholesaler of the Pacific Northwest, the Odom Corporation is one of the largest privately held companies in the area, stocking 9,800 SKUs from 480 suppliers across 7 major warehouses. Despite this overwhelming success, the Odom Corp. found that it struggled with inventory management and supply chain planning.
To improve efficiency in its sales planning and operations groups, Odom’s management team established several strategic objectives:
- 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 year
- Maintain target days of supply for major suppliers at 21 days
- Gain visibility of inventory down to item level
Their solution? Salient’s Margin Minder sales analytics software, coupled with Salient’s added value consulting services. Not only did the Salient solution optimize inventory and improve performance, but it also integrated aging data from Odom’s Warehouse Management System with inventory, purchasing, and forecasting from its System 21 package. Dennis Angrisani, VP of Planning and Analysis, explains:
“The [Salient] inventory cube not only has information across all of our dimensions of product and all parts of our organization, including the stockroom and sales center, we can also focus on exactly where we are long or short. We can look across our inventory agings just like our receivables agings. We have full drill down capabilities.”
Within six months of implementing the Salient inventory cube, Odom Corp. reduced the days-on-hand inventory in its wine and liquor business by 6.6 days, lowered inventory carrying costs by $4 million, reduced the 1-year aged inventory in its beer business by $283k, and grew by adding new suppliers – all in spite of a struggling economy. According to Angrisani, Salient provided many great concepts, but where the solution really excelled “was converting the concepts into a usable tool. I don’t think we could have done that without Salient’s consulting service.”