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McPherson Oil leapfrogs average annual inventory turns by 38 percent
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McPherson is one of the largest independent industrial lubricant distributors in
the Southeastern United States. With its philosophy of Total Petroleum Management,
the Company provides its customers with a complete offering of petroleum products
and services. It also serves as a distributor for Exxon Mobile, BP Castrol and Conoco
Philips products.
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McPherson Oil’s ability to quickly respond to fluid market conditions today and
tomorrow hinged on evaluating and acting on relevant sales and inventory data.
- Planners responsible for stocking thousands of SKUs relied on a batch, invoice-driven
product tracking system geared more toward sales tracking than inventory accuracy
- Financial spreadsheets had been doubling as sales forecasting tools
- The company was slow to address product obsolescence, needed to see emerging trends
faster and have visibility over sales and the overall supply chain
- A single purchasing manager had the arduous task of reviewing some 30,000 line items
daily before product decisions could be made
- Implement Windows-based® Reporting Services to interpret sales histories and offer
suggestions on stocking and distribution
- Use dashboards not only to gain company-wide visibility into the future but to also
dive down at multiple levels to retrieve and evaluate data for decision-making purposes
- Prepare future budgets, construct inventory scenarios and sales strategies through
Inventory Planning module
- Use scenario planning so that planners can tell managers what future inventories
will look like throughout the system if certain decisions are made
- Annual inventory turns increased from 6.5 to nine times in just six months, a 38%
increase
- Each turn translated into an additional $150,000 in revenue
- Facility managers now can see how site sales volumes, inventories and other key
indicators are performing
- The dashboard reporting tool enables site-specific sales and inventory data and
forecasts to be visible by key personnel
- New efficiencies allowed McPherson to consolidate eight warehouses into five, saving
an additional $2 million
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