Direct-Selling Fulfillment Outsourcing Guide

Sales are ramping up, but volume levels are unpredictable ... It is becoming more difficult

to get orders out the door ... The software designed to manage your sales consultants is

not the best fit for your fulfillment needs ... Your marketing department wants to change

packaging, adding further supply chain complexity ... Sound familiar?

Delivering products to consultants efficiently, accurately and cost-effectively can be challenging. Effective

order fulfillment requires flexible solutions, advanced technology, customization capabilities, transportation

expertise and a network of locations. These demands often drive direct-selling companies to seek out a

third-party logistics provider (3PL) for order fulfillment.

Signs that It’s Time to Outsource Order Fulfillment5

2

Wondering if it’s time to expand your fulfillment resources? Here are five signs that you might

be ready to seek out an experienced third-party partner — and what they can do to help.

1 Your business is growing – fast!

As sales increase, it can be challenging to keep up with

growing order volume – and hard to predict your needs. The

ebb and flow of business, new product releases, seasonality,

continuity programs and other considerations can be a

challenge in terms of staffing and space. A 3PL can provide

resources, flexibility and experience to ease the pain (and

costs) associated with variable order flow and growth.

If time is of the essence, ask about their start-up process.

Can they get your operation up and running quickly and

efficiently without disrupting your service levels? If your

requirements change, do they have the flexibility to

accommodate them easily? What is their contingency plan?

HELPFUL TIP

Look for a provider who can meet your needs

today and tomorrow. Identify a partner that can

custom-engineer scalable solutions that will

grow with your business.

3

Your consultants – and customers – don’t have time to wait.2

3 Ways to Speed Up Your Shipping Times

Your 3PL can help you implement the following strategies to improve

delivery times:

UPGRADE YOUR TECHNOLOGY

Advanced technology can help to speed fulfillment. An OMS,

for example, can help you view and route orders in real time and

ensure that each order is filled from the most efficient fulfillment

source. Mechanized warehouse solutions also can help to shorten

order turnaround times.

EXTEND YOUR SHIPPING WINDOW

Working with carriers to provide later pickup times will enable

you to increase your shipping window, allowing more orders to

be fulfilled same-day.

MAXIMIZE YOUR DISTRIBUTION NETWORK

Using a multi-site distribution model can help to shorten transit

time (and cost) to your customers. With two or more strategically

located DCs, it is possible to reach 90 percent of the U.S. in two

days or less using ground service.

Getting your products into the hands of

consultants and customers efficiently,

accurately and cost-effectively is a top priority.

Look for a provider with systems, processes

and automation capabilities to ensure faster

fill rates without sacrificing quality.

The location of your distribution center(s)

can also impact order delivery times and

fulfillment costs. Seek out a provider with

facilities in strategic geographic locations,

so you can move inventory closer to

your customers.

4

3

Many direct-selling companies try to manage order

fulfillment using systems and software designed for other

purposes, such as managing sales consultants. However,

as your operations become more complex, flexible

and appropriate systems are critical for

operational success.

In addition, as sales volume increases, you will

inevitably require automated or mechanized

solutions (i.e., motorized conveyors, pick-to-

light technology, automated labeling, etc.)

to increase efficiency and throughput while

maintaining order accuracy. Hand-picking 100

orders a day is one thing. Hand-picking 10,000

daily orders is an entirely different ball game.

Outsourcing to a 3PL gives you access to advanced

technology without the associated overhead investment.

Confirm that your provider of choice is committed to

keeping abreast of the latest developments and upgrades

technology regularly.

Technology limitations are cramping your style.

OMS Helps to Address Common Direct-Selling Challenges

When it comes to delivering the desired customer

experience, legacy systems may fall short – especially

if you utilize a multi-site distribution model. You’re likely

to require a more sophisticated technology solution in

order to get the right order to the right customer at the

right time.

An Order Management System (OMS) can integrate

seamlessly with a Warehouse Management

System (WMS), Transportation Management

System (TMS) and other existing systems to

manage inventory and order processing through

to the end customer.

A robust OMS can be a powerful tool for

addressing several common challenges,

including managing inventory across multiple

locations, improving visibility and providing intelligent

order routing.

Look for a provider with an OMS and WMS that can

seamlessly integrate with your accounting, ERP or

web-based commerce systems. Access to real-time

data and automated reporting is critical for up-to-the-

minute information about your operations.

A robust OMS can be

a powerful tool for

addressing several

common challenges.

5

You can’t be a Jack-of-All-Trades.4

As your business grows, you need to focus on your core

competency – what made customers love your product

in the first place – but there are many details to distract

you. Modifying products to meet customer preferences,

assembling welcome kits for new distributors, monitoring

inventory levels, sizing packages for lowest possible

dimensional weight, negotiating transportation rates… the

list is endless.

Chances are, you could use some help. Look for an

experienced provider in the direct-selling space with

proven experience handling your type of product or

special requirements (i.e. large-sized or high-value items,

customization needs, shipping to consultants or direct

to customers, etc.). They can apply creative processes

and best practices and help you anticipate needs and

recommend changes, so you can be more responsive to

your customers.

A fulfillment provider that offers a variety of integrated

capabilities, such as warehousing, transportation and

value-added services, can give you a single-source

solution to help streamline your business.

HELPFUL TIP

Look for an experienced provider in the direct-selling

space with proven experience handling your type

of product or special requirements. They can apply

creative processes and best practices and help you

anticipate needs and recommend changes, so you

can be more responsive to your customers.

6

You recognize the value of your brand.5

Order fulfillment is a critical business function and a

key component of your customers’ brand experience.

Consistency, accuracy and professionalism are essential.

Attention to detail is a must. If you have a high-end product,

for example, you don’t want it to arrive on the customer’s

doorstep in a battered box or – worse yet – damaged due

to poor packaging. If you deliver to consultants, is there

a detailed packing slip that helps them to deliver their

customers’ orders efficiently?

Your fulfillment provider must recognize that they are an

extension of your brand and demonstrate their commitment

to helping you keep your brand promise.

Quality Focus Keeps Customers Coming Back

Focusing on these key areas will help to ensure that

orders are fulfilled correctly every time:

EFFECTIVE PROCESSES

Establish and document effective processes to

ensure that orders are managed correctly. Build

in flexibility to accommodate business changes

and growth.

ADVANCED TECHNOLOGY

With the right systems in place, you can enhance

visibility, ensure order accuracy, and improve

inventory management – even at multiple

locations. Fulfillment automation and material

handling solutions are also critical to help

increase efficiency and consistency, including

pick-to-light technology, RF scanners, automated

label application and weight verification scales.

CONTINUOUS IMPROVEMENT

Focus on quality at every stage of your

operations and routinely look for opportunities

for improvement. Lean Six Sigma methodologies

can help to establish consistent standards

and processes and deliver consistent,

measurable results.

If you’re seeing any of the signs detailed here, this

could be a good time to explore fulfillment outsourcing.

Many direct-selling companies recognize that they can

better control costs, accommodate business growth,

and ensure service excellence by outsourcing some or

all of their fulfillment needs. You could be one of them.

7

Direct-Selling Fulfillment Solution Delivers Results

When dōTERRA experienced rapid business growth, the Utah-based direct seller turned

to Saddle Creek Logistics Services. The 3PL helped to accelerate the capacity and

velocity of fulfillment operations and accommodate dramatic fluctuations in volume.

The Saddle Creek team now processes hundreds of thousands of orders for dōTERRA

each month, scanning the serialized “quality ID” on every item before shipping for

tracking and regulatory purposes.

The majority of orders ship in a two-week window. Thanks to the 3PL’s efforts,

productivity has increased while the average cost per order decreased 62 percent.

Saddle Creek has outperformed dōTERRA’s expectations and helped to increase

throughput, ensure accuracy and control costs. In recognition of these accomplishments,

dōTERRA named Saddle Creek its 2020 Fulfillment Center of the Year.

“Saddle Creek has done a phenomenal job at executing according to our business needs with a laser focus on taking care of our customers.”

—JOHN VISSER, Vice President of Global Logistics at dōTERRA

READ THE FULL

CASE STUDY

Saddle Creek has

outperformed dōTERRA’s

expectations and helped to

increase throughput, ensure

accuracy and control costs.

88

Looking for a direct-selling fulfillment partner?

At Saddle Creek, we support the fulfillment

needs of many direct sellers, helping to

get their products where they need to be

quickly, cost-effectively and seamlessly.

Ready to enlist the help of an expert

partner? Contact us today!

sales@sclogistics.com sclogistics.com

3010 Saddle Creek Road Lakeland, FL 33801

863-665-0966 Corporate866-668-0966 Toll Free