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RCG Success Stories

Enterprise Resources Planning: Implementing DRP for a Wine/Spirits Distributor

Distributor of Consumer Goods: $120mm Sales Revenue

This company is a wholesaler of domestic and imported wines and liquors. The company sells to restaurants, liquor stores, taverns, and hotels, primarily located in the New York State area. The company has been in the process of implementing software applications since July 1999. The company requested the assistance of an objective third-party to assess whether or not the com-pany should proceed with the implementation of DRP.

The objectives of the effort were to:

  • Assist as an outside and objective party to review distribution operations,
  • Compare operational needs to the needs requirements listings provided to us, add to the requirements as necessary,
  • Review the DRP module, and
  • Recommend if the company should proceed with the implementation of the DRP module.

    Based on the information provided to us, and the results of tests on a test database, we recommended our client proceed with the implementation of DRP. We also recommended education and training, and use of time-supply order techniques to substantially reduce total inventory. The savings from the implementation of DRP module were:

  • One-time reduction of total inventory of 29-30%
  • Estimated increase in total inventory turns amounting to 145%
  • Estimated annual savings of $750,000 due to reduction of inventory carrying interest
  • Productivity improvements of 20-25% in purchasing

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