Case studyMarch 19, 2026

How a 3-Warehouse Distributor
Eliminated Stockouts with Odoo

OVERVIEW

Who Is Atlas Supply Co.?

Atlas Supply Co. is a wholesale distributor of industrial fasteners, fittings, and safety equipment serving contractors and maintenance teams across Texas. With 120 employees and three warehouses in Dallas, Houston, and Austin, they process approximately 450 orders per day across 3,800 active SKUs.

Their customer base—general contractors, plant maintenance managers, and municipal procurement offices—expects same-day or next-day delivery. In the industrial supply world, a stockout doesn't just mean a lost sale. It means a job site goes idle, a contractor misses a deadline, and Atlas Supply loses a customer to a competitor who had the part in stock.

Industry

Wholesale Distribution (industrial fasteners, fittings, safety equipment)

Employees

120 (65 warehouse, 30 sales, 25 operations & admin)

Locations

Dallas (HQ + main warehouse), Houston, Austin

Previous Systems

QuickBooks Enterprise + Excel spreadsheets + standalone barcode system

Odoo Modules

Inventory, Sales, Purchase, Accounting, Barcode

THE PROBLEM

What Happens When Three Warehouses Can't See Each Other?

Atlas Supply's technology stack had evolved organically over 12 years. QuickBooks Enterprise handled accounting and basic inventory. Each warehouse maintained its own Excel spreadsheet for stock counts. Sales reps checked availability by calling the warehouse or—more often—guessing.

The result was predictable:

  • 12% stockout rate: One in every eight orders included at least one line item that couldn't be fulfilled from the assigned warehouse. Items were often sitting 200 miles away in another location, but nobody knew.
  • 45 minutes per order: Sales reps spent an average of 45 minutes per order—checking availability across spreadsheets, calling warehouses, manually entering data into QuickBooks, and emailing pick lists to the floor.
  • 78% inventory accuracy: Quarterly physical counts consistently showed a 22% discrepancy between system records and actual stock. That's not a rounding error—that's a broken process.
  • No cross-warehouse visibility: Dallas couldn't see Houston's stock. Houston couldn't see Austin's stock. When a customer in San Antonio needed 500 hex bolts, the Austin rep had no way to know Dallas had 2,000 sitting on a shelf.
  • Manual replenishment: Reorder decisions were based on the warehouse manager's gut feeling. "I think we're low on 3/8" carriage bolts" is not a procurement strategy.
The Revenue Impact

At a 12% stockout rate with 450 orders/day and an average order value of $420, Atlas Supply was losing approximately $22,680/day in orders that either went unfulfilled, were partially filled, or were lost to competitors. Even assuming 60% of those orders were eventually recovered, the annual revenue leakage exceeded $3.3 million.

THE SOLUTION

How Did Odoo Connect Three Warehouses Into One System?

The core of the solution was Odoo 18's multi-warehouse inventory management, combined with automated replenishment rules and the Barcode app for real-time stock tracking. Here's how each piece worked:

Unified Inventory View

Every SKU shows real-time available quantity across all three warehouses. Sales reps see a single screen: "Dallas: 340 | Houston: 180 | Austin: 95." No phone calls. No spreadsheets. No guessing.

Automated Replenishment Rules

Each warehouse has SKU-level minimum and maximum stock thresholds. When Dallas drops below 200 units on a high-velocity item, Odoo automatically generates a purchase order or an inter-warehouse transfer request—whichever is faster based on configured lead times.

Smart Order Routing

Orders are automatically routed to the warehouse closest to the delivery address with sufficient stock. If the nearest warehouse is short, Odoo splits the order or routes entirely to an alternate location—all without manual intervention.

Barcode-Driven Operations

Every receiving, picking, packing, and shipping operation requires a barcode scan. No more mental math. No more "I think I put that on shelf B3." Scan in, scan out, and the system stays accurate.

Integrated Sales & Purchasing

Sales orders flow directly into warehouse pick lists. Purchase orders update inventory on receipt. Accounting entries post automatically. One entry point, zero re-keying.

IMPLEMENTATION

How Was a 3-Location Rollout Completed in 10 Weeks?

The implementation followed a hub-and-spoke approach: get the Dallas headquarters fully operational first, then replicate the configuration to Houston and Austin. This reduced risk and created an internal reference site for training.

PhaseWeeksFocusKey Activities
1 — Data & Config1–3FoundationProduct master import (3,800 SKUs), warehouse structure setup, vendor/customer migration from QuickBooks, chart of accounts mapping
2 — Dallas Go-Live3–5HQ WarehouseBarcode hardware deployment, pick/pack/ship workflow configuration, sales order integration, staff training (3 days on-site)
3 — Houston Rollout5–7Warehouse #2Replicate Dallas config, physical inventory count, barcode deployment, local staff training (2 days on-site)
4 — Austin Rollout7–9Warehouse #3Replicate config, physical inventory count, barcode deployment, local staff training (2 days on-site)
5 — Optimization9–10All LocationsReplenishment rule tuning, inter-warehouse transfer routes, reporting dashboards, accounting reconciliation
Why Hub-and-Spoke Works

By going live in Dallas first, we created internal experts who helped train Houston and Austin teams. The Dallas warehouse manager became the strongest advocate for the new system—and when Houston staff had questions, they called Dallas instead of the implementation team. Peer credibility beats consultant credibility every time.

THE RESULTS

What Did the Numbers Look Like After 90 Days?

Atlas Supply tracked performance metrics weekly during the first 90 days. The before/after comparison tells the story:

MetricBefore (QuickBooks + Excel)After (Odoo 18)Change
Stockout rate12%2.1%-82%
Order processing time45 minutes8 minutes-82%
Inventory accuracy78%99.2%+27%
Orders processed per day450620+38%
Cross-warehouse transfersManual (2–3 day delay)Automated (same-day)-90% lead time
Picking errors3.2%0.4%-88%
Monthly accounting close12 days4 days-67%
Annual operational savings$340,000Net new

The $340,000 in annual savings breaks down as follows:

  • $156,000 — Labor savings from reduced order processing time (37 min saved × 450 orders/day × $0.85/min loaded labor cost)
  • $98,000 — Recovered revenue from stockout reduction (9.9% improvement × estimated lost revenue)
  • $52,000 — Elimination of QuickBooks licenses, standalone barcode system, and spreadsheet maintenance labor
  • $34,000 — Reduced picking errors, returns, and re-shipments

The one-time implementation cost of $72,000 achieved full payback in under 11 weeks.

LOCATION DETAIL

How Did Each Warehouse Perform Individually?

One advantage of the hub-and-spoke rollout was the ability to compare performance across locations at different stages of maturity. Here are the warehouse-specific metrics at the 90-day mark:

MetricDallas (HQ)HoustonAustin
Days live at 90-day review75 days55 days35 days
Inventory accuracy99.5%99.1%98.8%
Stockout rate1.8%2.2%2.4%
Avg. order processing7 min8 min10 min
Picking error rate0.3%0.4%0.6%
User adoption98%96%91%

The pattern is clear: Dallas, having been live the longest, shows the best numbers across every metric. Houston is close behind. Austin, the newest site, is already outperforming the old system's best-case metrics—and improving weekly as the team builds proficiency.

Key Insight

The gap between locations narrows every week. By the 6-month mark, we expect all three warehouses to converge within 0.5% on accuracy and stockout metrics. The system is the same—the only variable is team familiarity, and that's self-correcting with time.

Are Spreadsheets Still Running Your Multi-Warehouse Operation?

Atlas Supply's story is common among distributors in the $10M–$75M range: you've outgrown QuickBooks, you're managing inventory in spreadsheets, and the cost of stockouts and inefficiency is quietly eating your margins. The longer you wait, the more it costs.

Odoo 18's multi-warehouse inventory management, automated replenishment, and barcode-driven operations give distributors the visibility and automation they need—without the six-figure price tag of legacy distribution ERPs like Epicor Prophet 21 or Infor Distribution.

Want to see what Odoo could do for your distribution operation? We specialize in multi-location implementations for wholesale and distribution companies across the US and Canada. Every engagement starts with a detailed assessment of your current workflows, pain points, and inventory accuracy.

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