Case Studies doTERRA | Case Study: Fulfillment

doTERRA provides high-quality essential oils and products for health and wellness. Sold through a global network of independent Wellness Advocates, its products are in high demand. When rapid business growth prompted the direct seller to upgrade fulfillment providers in 2018, doTERRA selected Saddle Creek Logistics Services.

The Challenge

doTERRA needed to accelerate the capacity and velocity of fulfillment operations and accommodate dramatic fluctuations in volume. Nearly two-thirds of all orders ship in a two-week period in the first half of each month.

In addition, every bottle of doTERRA oil is printed with a serialized “quality ID” and must be scanned for tracking and regulatory purposes.

The Solution

The Saddle Creek team in Fort Worth, Texas, partnered with doTERRA to design a highly mechanized fulfillment solution – complete with a robust warehouse management system (WMS) and state-of-the-art material handling equipment, including automated pick modules, pick-to-light, powered conveyor, parcel sortation and pick bin management. Dynamic slotting processes and integrated pack stations speed throughput.

Each month, associates process hundreds of thousands of orders, including QR code scanning on every item before shipping. Saddle Creek scales to support the labor-intensive process in the first two weeks of the month and shifts staff resources to other accounts when not needed. Labor management tools and Lean practices maximize productivity. The company’s facility in Ontario, Calif., is used to handle overflow.

The Results

Saddle Creek’s fulfillment solution quickly outperformed original expectations and has helped to increase throughput, ensure accuracy and control costs. The number of orders per manhour has skyrocketed while the average cost per order decreased 62 percent.

The 2020 holiday season helped to highlight the effectiveness of the Fort Worth operation. The team handled a 50 percent increase in order volume in November 2020.

doTERRA is thrilled with Saddle Creek’s performance and and looks forward to continuing the partnership.

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Related to: Controlling Costs, Managing Growth

Thanks to effective leadership, strategic planning and attention to detail, Saddle Creek generates results.
Rob Carly
Director of Fulfillment & Logistics, doTERRA