Case Studies Omnichannel Fulfillment Powers Healthy Growth
Key Highlights
- Omnichannel fulfillment for best-selling superfood brand
- Supporting significant growth and channel expansion
- Significantly boosted D2C throughput while reducing fulfillment costs by 63%
- Dynamic carrier selection helped achieve 14% reduction in parcel costs
Did you know that healthy blood flow improves your endurance, your immune system, your energy level and even your metabolism? Humann co-founders Joel and AnnMarie Kocher did. And they set out to help people realize their potential through the power of better blood flow.
They partnered with the University of Texas Health Science Center and top medical minds and spent over 10 years developing plant-based functional foods and supplements that leverage nitric-oxide, a naturally occurring molecule, to support cardiovascular, metabolic and brain health. In 2010, they launched Humann.
The R&D paid off. Humann has received Nutrition Business Journal’s science award and Informed-Sport certification. The company’s SuperBeets® products are the #1 pharmacist-recommended beet brand and have earned over 58,000 5-star ratings and reviews.
Gearing Up for Growth
In 2018, the Kochers realized they’d reached a tipping point. While they had a strong relationship with their third-party logistics provider, the 3PL could no longer keep up with their growth.
“At the time, we only had three products, but we planned to expand our product line and grow average order value as we earned customers’ trust. We realized we need to make change,” AnnMarie Kocher remembers. “In order to help our customers to reach their true potential, we needed a fulfillment partner that could help us reach our true potential.”
In order to help our customers to reach their true potential, we needed a fulfillment partner that could help us reach our true potential.”
~ AnnMarie Kocher, Humann President & Co-Founder
In order to help our customers to reach their true potential, we needed a fulfillment partner that could help us reach our true potential.”After researching options for a new fulfillment provider, they determined that Saddle Creek Logistics would be best able to support their growth plans.
“Saddle Creek was big, and we could grow into them,” Kocher explains. “They could handle our increasing volume and offer a greater variety of services, and their multi-client environment in Lexington could help keep our rates down.”
Upgrading providers proved to be a wise decision. Humann has since expanded its product line from powdered products to chews and gummies and expanded into new sales channels. The company has also taken an aggressive approach to marketing with TV and print advertising as well as social media campaigns, helping to drive awareness and demand.
With such momentum, it’s no surprise that the brand achieved three-year revenue growth of 163.5% in 2022 and was recognized as one of the Inc. 5000 Fastest-Growing Private Companies in America for the eighth year in a row.
Meeting Demand Efficiently and Cost-Effectively
“Our sales volume has grown significantly, but Saddle Creek is always able to get orders out same day,” says James Fairleigh, Senior Director of Supply Chain at Humann. “They are constantly making process improvements to get orders out faster.”
~ James Fairleigh, Senior Director of Supply Chain, Humann
Our volume has grown significantly, but Saddle Creek is always able to get orders out same day. They are constantly making process improvements to get orders out faster.”Humann frequently bundles products with buy one, get one (BOGO) offers and other deal structures to increase average order value. To support this marketing strategy, Saddle Creek uses mass picking – picking identical orders for the same SKUs all at once in batches. This speeds order processing and reduces fulfillment costs by eliminating associates’ travel time on the warehouse floor.
Saddle Creek and Humann have worked together to increase the percentage of orders that can be mass picked – ramping up from 30% to 70% of total order volume over the past four years. Kocher calls that a “huge win.”
Strategic order waving and increased bulk picking have reduced fulfillment costs by 63% while significantly boosting throughput for D2C channels.
“We’re always looking for whatever gets us a cost advantage,” Kocher says. “One of the reasons I love our partnership is that Saddle Creek understands that every dollar I can save on operations is one more dollar I can spend on the national advertising that we need to grow.”
Strategic order waving and increased bulk picking have reduced fulfillment costs by 63% while significantly boosting throughput for D2C channels.
Supporting Channel Expansion
Humann products are available via ecommerce and continuity subscriptions as well as on Amazon and in over 4,700 retail locations nationwide. They are also used by over 1,400 medical professionals and more than 120 pro and college sports teams.
“A lot of companies start in retail. We started out selling direct to consumers. Today, we’re a true omnichannel company,” Kocher explains. “Saddle Creek has adapted to support all of our sales channels.”
Saddle Creek handles omnichannel fulfillment, as well as parcel and freight coordination and returns management, from a dedicated 20,000-square-foot, temperature-controlled area at its Lexington, Ky., fulfillment facility.
Humann’s B2B shipments typically involve just a few orders with hundreds of items while D2C orders involve sending thousands of orders with just a few items. Balancing both order profiles simultaneously increases the complexity of fulfillment operations significantly.
A powerful warehouse management system (WMS) allows Saddle Creek to accommodate different order profiles under one roof. It enables multiple process streams from the same inventory, supports a variety of picking strategies, and gives the operations team considerable flexibility in how orders are waved to the floor. The WMS also ensures traceability and quality control thanks to its ability to accommodate tracking, lot control, expiry dates, and multiple shelf-life thresholds.
“Saddle Creek’s investment in systems has definitely been an advantage for us as we’ve expanded to new sales channels,” Kocher says.
Reducing Delivery Time and Cost
Saddle Creek’s transportation management capabilities have also proved beneficial for Humann.
The 3PL relocated fulfillment operations from Atlanta to its facility in Lexington, Ky, a strategic move which helped to reduce transit time and cost. As a result, approximately 77% of U.S. consumers can now be reached in two days via more economical ground service.
Saddle Creek also introduced Humann to dynamic carrier selection and real-time rate shopping. Instead of defaulting to a single carrier, they now identify the optimal carrier and shipping method for every order. To date, this improvement has resulted in a 14% reduction in parcel costs through cost avoidance.
Dynamic carrier selection and real-time rate shopping have resulted in a 14% reduction in parcel costs through cost avoidance.
“Rate shopping allows us to make the best financial decision. It hasn’t impacted the customer at all, but it has definitely shielded us from the impact of carrier changes such as extra fuel surcharges. We still felt them, but we didn’t experience the big spikes,” Fairleigh explains. “Now we’re working on basing delivery choice on shipping times.”
Win-Win Relationship
“The biggest advantage of working with Saddle Creek is our long-term partnership,” Kocher says. “There are lots of fulfillment solutions out there, but it’s the people at Saddle Creek that make the difference.”
Humann and Saddle Creek have had a strong, collaborative relationship from the start. Both companies have a strong focus on values and are culturally aligned with personal connections at multiple levels of the organizations. They also share an emphasis on employee development, growth, and opportunities.
“The Saddle Creek team really understands our business. If there’s an issue or discrepancy, they notice it and call us,” she explains. “And when we do have issues, their attitude is ‘Let’s figure out a solution,’ rather than ‘It’s not our problem.’ We meet, talk, grow, and figure things out.”
There are lots of fulfillment solutions out there, but it’s the people at Saddle Creek that make the difference.”
~ AnnMarie Kocher, Humann President & Co-Founder
Kocher says great communication is a strength for Saddle Creek.
“I know I can pick up the phone, and I’ll get support in timely manner. They’re very responsive,” she says. “During our start-up, Saddle Creek’s management team even flew in to support us.”
The value of the partnership has been especially evident as of late, Kocher says.
“Recently, with the pandemic and post-pandemic, inflation, labor and supply chain issues, I have really felt that we’re all in it together,” she says. “Saddle Creek’s willingness to share the burden in these challenges has been a huge value.”
With considerably more growth on the horizon, the partners will keep working to evolve and grow together.
“As we plan for the future, we know Saddle Creek can stand a lot more growth,” Kocher says. “We look forward to continuing the partnership!”
