Founded in 1958, the family-owned business managed its own national fulfillment for many years from a single warehouse in Fremont CA, near its San Jose headquarters. This resulted in lengthy 7–10 day transit times to East Coast customers. With sales growing and its warehouse space running out, NeoLife’s operations leaders knew the company needed to scale fulfillment operations to support future growth.
“We wanted to expand capabilities without large capital investments, and we knew the right 3PL could get us there,” says Clarissa Perez-Pacheco, NeoLife’s VP of Operations, North America.
Key To Success
SCALABILITY
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
ADAPTING BASED ON SKU-SPECIFIC FORECASTS
With the new voice pick system in full operation, 32 Degrees shipped more B2C orders on July 4th than it did on the previous Cyber Monday. Fulfillment is no longer a barrier to growth.
PARCEL SAVINGS
A change from USPS to FedEx SmartPost using Staci Americas' lower rates yielded substantial parcel savings.
CLOSE COMMUNICATION
The relationship is highly collaborative. “Staci Americas acts on the information we provide – not all 3PLs do,” says Lunden. And 32 Degrees will change its processes in response to an Staci Americas request. For instance, 32 Degrees worked with its overseas vendors to group like SKUs together when loading containers. This significantly reduced unload and sort times at the warehouse.
After a competitive bid process, NeoLife chose Staci Americas Fulfillment to manage 100% of its order fulfillment from locations in Dallas and Phoenix.
About Neolife
NeoLife is a global direct sales company that seeks to create a happier, healthier world through better nutrition. Founded in 1958, the family-owned business managed its own national fulfillment for many years from a single warehouse in Fremont CA, near its San Jose headquarters. This resulted in lengthy 7–10 day transit times to East Coast customers. With sales growing and its warehouse space running out, NeoLife’s operations leaders knew the company needed to scale fulfillment operations to support future growth.
Keys To Success
SCALABLE OPERATIONS
When COVID lockdowns took hold in February of 2020, NeoLife’s order volume increased 53% in a single month. During its first 4 years with Staci Americas, NeoLife’s sales grew 62%. Staci Americas scaled space and labor to accommodate this growth.
MULTI-DC NETWORK
Fulfilling orders from Dallas and Phoenix has put product closer to most customers, enabling an average order-to-delivery time of 3 days. By reducing the percent of high-zone moves, the strategy also cut parcel costs 20%. “Customers that must wait many days to receive orders may look elsewhere,” says PerezPacheco. “By leveraging Staci Americas' national fulfillment network, we help reinforce the reputation of NeoLife promoters for great customer service.
STRONG RELATIONSHIP WITH ACCOUNT TEAM
The NeoLife and Staci Americas staffs function as one integrated team. “Staci Americas people are very responsive to order status and other requests,” says Perez-Pacheco. “When the answer is not available on the portal, we can get the information we need quickly.
COMPLEX PACKOUT
NeoLife employs a range of packaging types, including boxes and pouches. Certain multi-SKU orders must be packed in specific ways to avoid damage in transit. NeoLife also likes to include branded messaging on its packing slips. “Associates need to be carefully trained on our packout process,” says Perez-Pacheco. “Staci Americas has done that and consistently meets SLAs for order accuracy and damage prevention.”
Results
High-quality Logistics
Support in a rapid-growth environment
Reduction
In order-to delivery cycle time
Reduction
In parcel costs
Says Perez-Pacheco, “Staci Americas takes care of the day-to-day fulfillment details and that allows us to focus on product quality and keeping our promoters and their customers happy.”
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