“We were thrilled to make the final cut,” says Fred Loeffel, senior vice president of business development, OH Logistics. “But we also knew that winning the business was just round one. We still had to prove ourselves in service.”
Customer Service Soars
To get the relationship started on the right path, InnoWare brought all of its sales people in for a kick-off meeting and meet the OH Logistics team. The meeting was actually held at the distribution center in Nashville so that the InnoWare group could see exactly where the products would be located.
This partnership transformed InnoWare’s operation from a manual distribution environment to a fully automated one in a very short time. InnoWare re-ports that OH Logistics provides the tools it needs to make informed decisions and to be more competitive.
OH Logistics is utilizing its WMS, Synapse, and Oracle Transportation Management System for the InnoWare operation. Both systems are web-enabled and provide visibility throughout the supply chain.
Shortly after the start of operations, InnoWare reported that the implementation was a success, that all shipments had been made and that its customers were happy.
Today, InnoWare is utilizing 135,000 square feet—with another 15,000 square feet of flex space available for its peak season—in the OH Logistics’ Nashville facility.
Critical performance indicators are way up and have reached levels that assure improved customer satisfaction for Inno-Ware. On-time delivery is now at 98 percent or better, and inventory accuracy is “very high” at 99.96 percent. Inventory availability has improved so that InnoWare’s fill rate is now 99.99 percent.
“Not only are we providing improved service to our customers,” says Nordin, “but internally our resources have been freed up. Previously our management was busy every day fighting fires and we had lots of expensive rush deliveries because we did not have good control of our inventory. That’s all changed and now we can focus on managing our supply chain and core business.”
Another benefit of better inventory control is that InnoWare has been able to reduce its overall DC space requirements while improving its inventory turn rate.
“I’d estimate our gains in customer service are at least 20 percent,” says Nordin. “We’ve always provided superior food service products, but now we are regarded as one of the best suppliers with on-time deliveries.
“In the final analysis,” says Nordin, “the performance provided by OH Logistics is way above what we were previously experiencing. There is no comparison between what our operations were before and the excellence we have achieved.”