Supply Chain Stories: JobsOhio Beverage System and DHL Supply Chain’s Top Shelf Partnership

In our most recent podcast episode, we welcomed Lorraine Terry, Managing Director for JobsOhio Beverage System, and Jason Rowe, Senior Director of Operations for DHL Supply Chain, to discuss the unique challenges of a control state operation managing the distribution of liquor and the importance of a top-shelf partnership.

What is JobsOhio?

JobsOhio is a state-authorized, non-profit dedicated to attracting, retaining, and expanding business opportunities across the state of Ohio. The beverage system is an important component of the organization and helps to achieve these economic goals through liquor distribution and sales. Every bottle of over 42-proof liquor purchased in Ohio moves through the JobsOhio Beverage System network.

JobsOhio Beverage System manages the liquor distribution to all of Ohio’s 488 Ohio Liquor (OHLQ) stores. Only two dedicated warehouses store and distribute high-proof liquor across the entire state. Due to the nature of the product, the warehouse operations must maintain impeccable inventory accuracy to ensure that all the product arrives at the right place at the right time.

Supplier Relationships On the Rocks

In 2017, JobsOhio Beverage System sought to improve its supply chain operation. At the time, the organization had contracted four different 3PLs and operated within a disjointed and spread-out network of warehouses. As a result, inventory accuracy suffered, and many liquor brands began to require in-person, manual inventory checks multiple times a year. Some high-end brands even pulled their products from Ohio shelves citing inventory issues and unfair distribution practices.

When evaluating solutions to remedy the challenges that led to supplier brands losing trust in Ohio’s liquor distribution operation, JobsOhio Beverage System recognized the enormous potential in partnering with DHL Supply Chain. In search of a partner who could maintain inventory accuracy, demonstrate operational visibility and provide vast logistics experience in a variety of complex industries, the JobsOhio Beverage System team determined that DHL Supply Chain was the right fit. The fact that the North American division of DHL Supply Chain is headquartered in Ohio was a bonus.

“I don’t hire contractors; I hire partners that have the same desire that I do to make this business as good as it can be.” -Lorraine Terry, Managing Director, JobsOhio Beverage System

A Top Shelf Partnership

DHL Supply Chain continues to work closely with JobsOhio Beverage System to ensure that the state liquor supply runs as efficiently as possible. DHL introduced new technologies and data systems that improved the overall operation, which started to resolve many of the challenges JobsOhio Beverage System previously faced. The number of required in-person, manual inventory checks steadily decreased, and high-end liquor brands began selling their product to Ohioans again.

The partnership between JobsOhio Beverage System and DHL Supply Chain has proven to be mutually beneficial. Managing the Ohio liquor distribution network has afforded DHL opportunities in other control states, and increased efficiency has benefited JobsOhio’s profit margin, which helps the state as a whole. Most recently, Intel announced plans to construct two leading-edge chip factories in Ohio, which directly results from JobsOhio’s efforts to leverage profits from liquor sales to encourage national companies to invest and build in Ohio. In addition to using profits to attract new business opportunities for the state, JobsOhio shares 75% of the agreed-upon amount of profit with the state to fund additional economic growth initiatives in Ohio.

So, the next time you buy a bottle of high-proof liquor in Ohio, you can raise a glass and know the bottle arrived on the shelf of the liquor store as a result of this great partnership, and that your purchase also helps fund economic development programs across the state. Listen to the full podcast episode here to learn more.