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UPS Supply Chain Solutions

This month's supply chain FAQ: What is an OOR – and why should I get one?

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According to a UPS expert, 60 to 70 percent of companies could benefit from an OOR, or operational opportunity review.

When Northeast manufacturer Brushy Mountain Bee Farm received a surplus of orders one busy season, its shipments became backlogged when production couldn't keep pace with skyrocketing demand. After contacting UPS Customer Solutions engineers for help, the company opted for a complete warehouse optimization overhaul – a feat made possible with an operational opportunity review, or OOR.

"If a midmarket company can improve by one more inventory turn, they'll save $100,000 per year.” – Mark Modesti of the UPS Customer Solutions group.

OORs take a detailed dive into the productivity, space utilization, inventory and related costs of a business. Tapping into a team of logistics experts, UPS assesses every square inch of a company's supply chain for potential inefficiencies, including shipping employees' hourly rates, inventory turns and costs incurred for incorrect orders.

“Results are compared to benchmarking data from the Warehouse Education and Research Council, and customers get a report showing where they stand compared to others in their industry, with the dollar impact of getting there,” says Mark Modesti of UPS Customer Solutions. “For example, if a midmarket company can improve by one more inventory turn, they'll save $100,000 per year.”

To see where your business could potentially save thousands, contact your UPS Account Manager today to schedule an OOR.

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