Expanding Facilities for Future Growth

The Client

A global multi-level marketing corporation that develops and sells meal replacement shakes dietary supplements, and skin care products.

The Challenge

Herbalife began its business in California and spread across the United States and globally over the years. To meet growth, they needed to increase capacity while cutting network costs.

With a plant in North Carolina, the client decided to move closer to the plant and expand their capacities to Tennessee while also setting up and updating their facilities for the future.

The Solution

KPI was one of three vendors, and our mirrored pod concept’s solution won the bid. Since the first project, KPI has been the trusted partner that would relentlessly pursue the right solution. The client eventually outgrew their California and Tennessee distribution centers.

A network analysis was performed and KPI found substantial growth and higher labor rates in the Northeast.

With that knowledge, the next step was to expand capacities to Maryland. Since the company ships directly to consumers or offers pick-up, the shipping cost would be considerably lower than if they were to expand the current distribution center.

In the new facility, they are picking over 400 lines per hour.

KPI kept sustainability in mind by installing a 24-volt conveyor that only runs when products are present. It is easy to maintain, quieter and uses less power than other conveyors on the market. A cardboard baler that recycles all cardboard or plastic was also added to the facility.

KPI will continue to provide innovative solutions and expertise that will enable the client’s quest to achieve higher performance.

The Value: