Case Studies - Young Living Essential Oils

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  • Client : Young Living Essential Oils
  • Category : Planning, Design & implementation
  • Tags : supply chain network optimization, consulting

Project Description

  • New Wholesale Fulfillment Center
  • 120,000 square foot facility
  • Internal Expansion
  • Physical Expansion (in planning process)
  • Other Projects:
    • New U. K. & Australia fulfillment centers
    • Labor Management System
  • Challenge
  • Solution & Result
  • Subsequent Actions

Johnson Stephens Consulting professionals have performed numerous projects for Young Living Essential Oils, the world leader in providing natural, therapeutic grade health products such as essential oils, skin care, and other supplements. The company operates a wholesale type model through a distributor network. Our team worked closely with Young Living Essential Oils 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 distribution center requirements for the planning horizon. Different 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” distribution center in Spanish Fork, Utah, and implement new material handling equipment (MHE) systems. This also included a coordination plan to provide MHE systems for the essential oils manufacturing operations also located within the new facility.

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Several MHE systems technologies were recommended including pick to light, automated carton sortation (packing and shipping), and drive-in/drive-thru storage rack for certain product types. Johnson Stephens Consulting was authorized to proceed to Phase 2 – Detailed Design and Phase 3 – Implementation. This involved a collaborative design process with the client and JSC responsibility for developing the RFP & Technical Specifications, assisting Young Living Essential Oils with 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. This required the coordination of several MHE suppliers (conveyor, storage rack, pick to light, warehouse control systems (WCS), lift truck and mobile equipment), interfacing with architect/engineers, general contractors, and real estate firms involved in base building construction to suit the MHE systems being implemented.
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JSC has subsequently assisted Young Living Essential Oils with an internal MHE systems expansion plan & design (for the next five year planning horizon) and physical expansion design planning. 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. and Australian business units.

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