Herbalife Nutrition is a $4.5 billion global nutrition company with more than 8,000 employees around the world. It relies on a network of dedicated independent distributors in more than 90 countries to sell nutrition, weight-management, energy and fitness, and personal-care products. So how can Herbalife best support its independent distributors, getting them fast-moving products when they need them without creating an inventory burden?
The answer is local sales centers.
Generally, Herbalife’s independent distributors don’t keep a lot of inventory on hand. They will purchase what they need, when they need it. Being able to get in-demand products into their consumers’ hand in a timely manner is paramount to the success of their operations. And if they happen to live close to one of the two Herbalife U.S. distribution centers, that isn’t a problem.
But the reality is that the majority of distributors don’t live in proximity to the two regional distribution centers. When they ordered product, they were waiting at least two days for a shipment. Herbalife sought a solution to better support the way their distributors operate.
By partnering with Cura Resource Group, Herbalife supplemented its major distribution hubs with local sales centers to fulfill distributors’ orders closer to home. Convenient in-market locations are fast, easy and efficient. They allow distributors to order frequently and in smaller quantities, which improves their cash flow and reduces cash outlays for bulk shipments.
Though Herbalife owns all the inventory in the local sales centers, Cura manages every aspect of the build-out — from mapping and planning to licensing and permitting. For Herbalife, Cura does all the up-front legwork, recommends optimal locations, signs the leases, hires the employees, and even recommends store fixture options.
Local sales centers have indeed solved the inventory management issue facing Herbalife’s independent distributors. But the centers have additional benefits that Herbalife, its distributors, and customers enjoy.
For one, local sales centers provide a safe place for individuals to pick up their orders — a particular concern to customers living in high rises without doormen or areas prone to porch piracy. Sales centers also support an omnichannel business strategy by providing shoppers with a click and collect option, a boon to both customers and the company. Furthermore, these centers can even help reduce delivery traffic, a growing problem in high-density urban markets.
One benefit Herbalife found particularly helpful was the way the sales centers facilitated the high-touch corporate culture. They’re a place for distributors to congregate, motivate each other through success stories, and learn about new products and ways to promote the Herbalife brand and lifestyle. By helping to foster a sense of community, the sales centers bring distributors and customers closer together.
Local sales centers have helped Herbalife better support its independent distributors, improve customer satisfaction, and — ultimately — drive business growth. Learn more about how adopting this infrastructure and operating philosophy has been successful for Herbalife Nutrition by downloading our free case study.
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