Location: Spanish Fork, UT
Before
Our client is the world leader in providing natural, therapeutic grade health products such as essential oils, skin care, and other supplements. The company operates an eCommerce fulfillment model through a retail distributor network. The JSC team worked closely with the client in the development of their five year business plan and new wholesale fulfillment center to support operations. The original business plan was then used to create a capacity study to identify the DC requirements for the planning horizon. Different material handling equipment (MHE) systems technology options for picking and storage were developed and analyzed using operating expense projections planning techniques, and recommended options were selected using net present value and after tax internal rate of return analysis methods. From the study and options review, a plan was developed to build the required space as a new, “greenfield” DC in Spanish Fork, Utah, and implement new MHE systems. This also included a coordination plan to provide MHE systems for the essential oils manufacturing operations also located within the new facility.
Results
Several MHE systems technologies were recommended including pick to light, automated carton sortation, and drive-in/drive-thru storage rack for certain product types. JSC developed the RFP & Technical Specifications to assist the client with an MHE supplier selection through a competitive bid process and implementation management. JSC was responsible as project manager to ensure that the MHE systems were implemented on-time and within the capital investment budget and according to issued MHE system contracts.
How We Did It
JSC has subsequently assisted our client with an internal MHE systems expansion planning & design (for the next five year planning horizon) and subsequent physical expansion to address business growth. Additional projects have included a Labor Management System (multi-variable engineered productivity standards and bonus rewards incentives plan), and new fulfillment center designs for the company’s U.K., Australian, and Croatian business units.
