By Dave Pezzullo, Chief Operating Officer and Chief of Staff, Herbalife Nutrition
August 22, 2017
At Herbalife Nutrition, we strive to build it better every day in order to fulfill our purpose to make the world healthier and happier. A large part of our organizational DNA is based in innovation, and that’s why I’m incredibly proud that we earned the 2017 Supply Chain Digital Transformation Award from the University of Southern California Marshall Center for Supply Chain Management, which recognizes organizations that leverage digital technology to disrupt and improve supply-chain performance. Our state-of-the-art systems, which contributed to this recognition, enable us to interface and collaborate in regions around the world.
The significant investment we have made in developing and maintaining a single instance of our base ERP and business systems around the world has created a platform where collaborative systems and processes can thrive. To help facilitate our global shift in how we operate, we adopted a single enterprise resource-planning platform to streamline our processes, communications and operations. We are in the process of implementing software that syncs our master production scheduling for our Herbalife Innovation & Manufacturing (HIM) facilities. We’re also putting a system into play that will reduce downtime and increase productivity.
This award is an affirmation that our long-term strategy to provide the most benefit to the most people around the world is working. We are industry leaders because we’re consistently looking to evolve and improve.
Supply-Line Quality and Consistency Inform Our Bottom Line
Commitment to quality is at the heart of everything we do. That is why we implemented our “Seed to Feed” initiative—we understand the importance of having complete control over our products, with the ability to trace every active ingredient. That means we work closely with partner-farmers in Mexico for our aloe, and in China to source our teas and certain botanicals. We know our soy farmers and we team with leading producers of other macro and micronutrients so we’re confident in the purity of our ingredients. And to ensure that what is on the label is in the product, our seven world-class quality control laboratories are ISO 17025-certified, which means they reach the gold standard for testing and sampling.
Of course, it’s good to be an industry leader, but we’re also thinking about our financials. We have implemented a Supply Chain Planning infrastructure that leverages a global systems platform to effectively manage service of supply to over 90 markets while optimizing our inventory investment.
This digital transformation includes the way we forecast sales demand using Oracle’s Demantra software. With Demantra implemented globally, we are now able to interface and collaborate with our different regions around the world, improving market intelligence with earlier demand indicators for faster response to trend changes.
Using Oracle’s Advance Supply Chain Planning (ASCP) software we have consolidated a $1.2 billion dollar annual spend into a single manufacturing and distribution replenishment planning environment which has improved service levels from 96% to 99% within a three year period. We are now in the process of implementing Quintiq’s Master Production Scheduling software that will allow us to fully model the complexity of our HIM manufacturing environment, with the goal to reduce overall downtime while increasing production efficiencies.
I’m beyond proud to work for a premier global nutrition company that wants to do so much good for so many people. When we innovate, we lead others, we enable new technologies and processes to build it better, and everybody wins.