Case Studies NuSkin | Case Study: Fulfillment
Customers look forward to receiving skin care and nutrition products from NuSkin Enterprises. Fast and cost-effective delivery is a high priority.
The Business Challenge
Based in Provo, Utah, Nu Skin found it particularly challenging to fulfill orders east of the Mississippi. The steadily growing direct-selling company turned to Saddle Creek to fast-track its fulfillment process.
With an eye on increasing efficiency and speeding delivery time, Saddle Creek established a strategically located operation for Nu Skin at its Charlotte, N.C., campus. The 27,000-square-foot, temperature-controlled operation offers enough space to accommodate fluctuations due to promotional activity and provides room for growth. Saddle Creek invested more than $1 million in automation systems and material handling equipment. Pick-to-light technology, time-saving trait capture on the pick line, and motorized conveyors with air manipulation capabilities are just a few of the efficiency enhancements.
The automation upgrade has had a significant impact on order accuracy as well as turnaround time. Saddle Creek now handles approximately 2,200 ecommerce orders every day and achieved 100 percent order accuracy in 2016. This is a remarkable accomplishment since more than 98 percent of orders ship same day. By utilizing Saddle Creek’s negotiated rates on light-weight parcels, Nu Skin saves up to 11 percent on shipping costs. The strategic Charlotte location helps Nu Skin achieve transit times of three days or less for the vast majority of distributor orders — a big boost for customer satisfaction. “Saddle Creek has helped us to get products from dock to stock faster, turn orders more quickly, and dramatically reduce delivery time for our East Coast orders,” says Brad Morris – vice president, global supply chain at Nu Skin. “Their fulfillment solution has significantly enhanced our customer service levels.”