This Fortune 100 company has entrusted OByrne Distribution Centers with the distribution of its finished products for over 30 years. Due to the extremely high value of cigarettes, customers limit their orders to an estimated daily case usage of over 1,200 different line items (SKUs). Individual case picking is extensive and inventory turns are high. Each day, ODC must effectively manage receiving and rotating thousands of cases and hundreds of SKUs, as well as the picking and shipping of hundreds of orders. Each order is unique and requires very close attention to detail, zero damage, FIFO rotation, and individual truckload or LTL shipping requirements. Accuracy and organization are of critical importance given the fact that even a single receiving, picking, or shipping error can cost ODC a thousand dollars or more per case. As with many of the other accounts we handle, the stakes are high but OByrne excels at meeting Philip Morriss detail-oriented demands through hiring only the most capable individuals and then training and motivating them to work as a team. Everyone is expected to hold high standards and to take responsibility for the success of the "total" operation.
Outsourcing distribution through OByrne has allowed Philip Morris to remain "lean & mean" in the competitive tobacco business. Fixed costs like property, buildings, trucks, etc. remain off of their balance sheet, greatly improving ROI, while OByrne takes responsibility for managing the details of getting the right products to the right places at the right time. Philip Morris is free to invest in things like marketing and new product development, which increase market share, instead of things like hiring, training, and managing, which dont.
OByrne is required to file monthly inventory reports with the state for tax purposes and the state conducts surprise inspections to verify inventory accuracy. These inventory reports, independently verified by the state, prove that OByrnes receiving, picking, and shipping accuracy rate is 99.99996% - a level of accuracy which surpasses all but the best distribution centers in the world. Accuracy on this level can give your company a clear advantage over your competition.
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