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Case Study: BDC’s Optimization Services

In this case study, we dive into the transformative journey of several distribution companies that collaborated with Beverage Distribution Consultants (BDC) to overcome significant operational challenges. Faced with issues ranging from high inventory write-offs and inefficiencies in order processing to underutilized warehouse spaces and suboptimal inventory management, these companies sought the expertise of BDC to optimize their distribution operations.

The Challenge

In the volatile and demanding beverage distribution industry, Distributors often grapple with challenges such as inefficient warehouse layouts, poor inventory management, and suboptimal order processing.

The Solution

Operational agility is the ability to efficiently and rapidly respond to changes in the market often through process optimization and technology.

Our Distributor optimization services provide actionable insights with follow-through on the execution of key initiatives via our ongoing support model. We help distributors get the most out of their systems, develop efficient processes, and enable their people to achieve the level of operational agility required for today’s distribution system. We provide needed support to address distributor challenges including:

  • Connect RAS best practices, system utilization, and operational expertise
  • Warehouse Management
  • Inventory management and controls
  • Warehouse Key Performance Indicators and Reporting
  • Order Processing + Demand Planning
  • Picking accuracy and efficiency + Service Levels
  • Resource utilization + Out of Stocks
  • Product handling costs + Inventory Write-offs

Key Results

74%

Reduction in Inventory Write-Offs: Implementation of standard check-in processes led to significant cost savings and reduced losses.

20

Cases per Hour Increase:
Streamlined picking processes resulted in higher efficiency and productivity.

$252,391

Savings in Inventory Costs:
Enhanced forecasting and inventory management significantly cut unnecessary expenses.

Our Approach: Optimization

We offer a unique responsive consulting and support model that enables real change management and continuous improvement. We teach our clients how to fish and continue to find ways to seize opportunities throughout their organizations via people, processes, and technology.

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Phase I Stabilize

Focused on creating a stable foundation, we define clear project goals and deliverables, setting the stage for impactful change.

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Phase II Transform

Transition to advanced reporting, analytics, and system support, driving significant improvements in operational efficiency.

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Phase III Innovate

Introduce state-of-the-art technology and processes, from Robotic Process Automation to advanced inventory management, setting our clients ahead of the curve.
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Three Case Studies in Distributor Optimizations

In-depth case studies illustrate the strategic transformations of three distinct didstribution companies, highlighting the tailored approach of BDC’s solutions and the significant results attained.

Distributor A

Challenge:

Distributor A had identified approximately 7k cases of unaccounted shrinkage in their inventory for 2022.

Solution:

BDC identified through the discovery process that the product was taken directly to the breakage area without being properly written off at check-in according to software system best practices. BDC worked with the Distributor A team to train, develop SOPs, and support the warehouse staff in implementing the recommended best software system practices.

Results:

74%

Reduction in inventory write-offs

Since implementing the standard driver check-in process with BDC on May 1, 2023, the Distributor experienced a significant decrease in write-offs, achieving net savings of $23,466.56 within the first three months.

Challenge:

Distributor A had expressed concern about their current pick path and the lack of efficiency with the current setup. Distributor A also needed more visibility into their current pick metrics.

Solution:

BDC provided the warehouse expertise and system configuration necessary to support the resequencing and layout of their current warehouse. Not only was this done to improve pick metrics, but by properly implementing eoStar’s Pick Kiosk, Distributor A now has daily pick metrics in which to better manage their warehouse.

Results:

20

Additional cases per hour

After implementing changes, Distributor A’s average increased from 47.71 cases per hour in March to 65.14 cases in April. Additionally, they now monitor pick metrics daily via comprehensive reporting developed by the BDC team.

Distributor B

Challenge:

Distributor B due to key employee turnover, was experiencing out-of-stock and high inventory days on hand issues for 2022.

Solution:

BDC engaged the Distributor B team in a review of the current inventory forecasting process. After identifying several key areas of software systems that were not being fully utilized to make decisions for forecasting, BDC worked with the Distributor B team to develop a more data-driven approach to forecasting beginning in April of 2023.

Results:

$252,391

Costs saved from reducing Inventory Days on Hand (IDOH) for 2023 vs the same time for 2022 from an average of 70.6 in 2022 to 57.8 in 2023.

$314, 803

Increase in product sales. Attributed a 35% reduction in the number of cases cut from orders due to more accurate inventory levels, enhancing the Order Load process.

$631,760

Net savings from reducing the number of delivery adjustments by 43% over 2022.

Distributor C

Challenge:

Distributor C had struggled with unexplained write-offs and large variances in their weekly counting cycles.

Solution:

BDC worked with Distributor C to identify gaps within their current warehouse operations, specifically driver check-in and returns. Starting in May of 2023, Distributor C has begun auditing returning trucks and ensuring products are properly identified at check-in.

Results:

$45,077.90

Saved by providing SOPs and training in conjunction with software system best practices

9,404

Reduced from overall inventory adjustments, from 12,091 during the same period in 2022, to 2,687 cases for 2023

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Transform your distribution operations with BDC’s tailored optimization services.

Experience operational agility, improved efficiency, and enhanced profitability. Through its comprehensive optimization services, BDC has not only addressed but also revolutionized the distributor’s operational frameworks, leading to substantial financial savings, improved efficiency, and enhanced service levels. This case study serves as a testament to the effectiveness and impact of BDC’s holistic approach to distributor optimization.

Contact Information

Website: www.bdc-us.com

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