OKI Bering welds success with IBS supply chain software solution
Company background
Expanding globally OKI Bering is a worldwide wholesaler of welding, safety and industrial supplies, serving distributors since 1937. The company has built its reputation on providing a large selection of quality products at competitive prices, along with excellent service to meet the ever-changing needs of distributors.
Based in Cincinnati, Ohio, privately-owned OKI Bering boasts one of the largest welding and industrial sales volumes in the US, selling only through authorized distributors. OKI is unique in that it also sells industrial, safety and health-related supplies, such as respirators for hospitals.
The company wholly owns or is part owner of operations in Canada, Mexico and the UK and has a sales presence in Dubai. OKI's vision is to be the premier welding hard goods wholesaler while growing into the industrial, safety and rental wholesale markets.
OKI Bering employs 200 people in its US operation and operates 19 worldwide locations.
Operational challenges
With a guiding hand from IBM, OKI Bering was able to make a decision in just two months. There were three key factors in the supply chain software, IBS ENTERPRISE. First, the IBS solution was tailored for industrial supplies distributors; second was IBS' ability to address OKI's worldwide requirements; and the third factor was IBS' pricing incentive.
IBS software for warehouse management is designed to cover any warehousing situation and is particularly beneficial for OKI Bering. The system is built with scalability in mind. It offers advanced location management with pallet handling and package reporting, all supported by radio frequency facilities. The IBS software allows OKI to set storage rules, and then arrange all products of all sizes to utilize storage space to its maximum efficiency.
In the highly competitive environment, where prices are already cut to the bone, customer service can be the crucial factor that sets a company apart from its competitors.
IBS' hotline capabilities provide a superb set-up for customer service and support operations, including the ability to record all interactions with customers. The hotline functionality is integrated with IBS software. This means that OKI Bering can respond to any customer service incident and provide fast, efficient service.
IBS software modules are also used in other operational areas. OKI uses the IBS solution to enter orders, fulfil and ship orders, do warehouse operations, receive purchase orders from vendors, and perform associated accounting operations.
The company maintains customers' records, vendors ordering and product information including pricing to support its operations' activities within the system.
This full integration makes IBS the ideal business software partner for OKI, providing the company with a competitive edge by making its operations better, faster and more profitable.
IBS was simply necessary to stay in business.
Kim Mahoney
IT Manager
Positive impacts
OKI Bering represents over 300 manufacturers. The company handles 350 manufacturer lines and stocks over 48,000 items, ranging from small one-cm. O-ring units to 4x4-feet storage ovens for electrode usage. From 14 domestic warehouses, OKI ships 98 percent of its orders within the same or next day. It has distribution facilities with a volume of close to 440,000 square feet.
Industrial supplies distributors face daily operational challenges. They need accurate demand forecasts for pricing and purchasing, and sales tools that help attract and retain customers. Above all, OKI Bering wanted an IT solution that would help to reduce stock, increase order fulfillment and increase turnover, resulting in the all-important increase in net profit.
The lack of warehouse management software under the legacy system was another critical issue. OKI's warehouse was organized alphabetically using a manual system that caused numerous problems, especially when far too much space was under-utilized as a result of out-of-stock scenarios.
To satisfy its growing export business, OKI Bering needed a solution that would offer multi-company, multi-currency and multi-language capabilities. The new software solution would have to be reasonably priced and be a close fit to the company's business processes.
A good fit for all needs
OKI Bering is extremely pleased with its decision to buy software from IBS. The company now handles 350 product lines with the same warehouse space and no increase in staff. Orders for shipping are pulled in the most efficient way and incoming stock is put away in the most prime pulling locations, resulting in a more efficient and effective warehousing operation.
An unexpected benefit resulted because OKI Bering shipped orders so much faster with fewer errors. It caused a competitor to close down its shipping facility in the same city as one of OKI Bering's larger facilities, thus providing an increase in market share.
Sales statistic reports from the IBS solution have had a positive impact on OKI's sales revenue, allowing the company to target improvements in its more deficient areas.
customer service has also improved. IBS has helped OKI Bering increase its reputation for getting orders out of the door more efficiently. Customers now know that if they order today, goods will be delivered by tomorrow at the latest – a fantastic achievement.
OKI Bering has welded a business of solid value with the help of the IBS solution. OKI Bering welds success with IBS – AMERICAS-based wholesaler OKI Bering is known for its high level of products and service within industrial, safety and healthcare-related supplies. The company looked for the same quality in business software for warehouse management and distribution on an international scale – and found it with IBS.
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