Case Study: PLEXUS WORLDWIDE
Founded in 2006, Plexus Worldwide is a leading health and wellness company that markets nutritional supplements, weight-loss, and personal care products. Based in Scottsdale, Arizona, and with thousands of independent business owners (“Ambassadors”) worldwide, Plexus is ranked as one of the top 25 global direct sales companies according to Direct Selling News.
In 2018, Plexus expanded into the Canadian market to continue to fuel their rapid growth. After conducting due diligence on prospective 3PL partners in Canada, Plexus selected Canadian fulfillment and distribution experts CCLS to plan and execute on their expansion.
Plexus selected CCLS based on a number of factors:
- A network of fulfillment centers across Canada, allowing for future growth while maintaining a single service provider across the country
- Health Canada licensed facilities, plus CCLS’s extensive experience in obtaining and maintaining compliance with HC registrations for Natural Health Care products
- Technology expertise to facilitate seamless integration between Plexus’ order and inventory management systems and CCLS systems
- E-commerce experience with subscription modelling, volume surge capabilities, and on-line shipment tracking for Plexus’ Ambassadors
- A bundled logistics solution that includes carrier and courier management of last-mile deliveries
CCLS also had deep experience in building subscription modelling for direct sales companies, and the impact that “auto-ship” options have with on-time performance and customer satisfaction.
CCLS established Health Canada licensed operations “on-the-ground” in Canada on Plexus’ behalf, which helped Plexus to expand from personal use orders to developing their Canadian sales network.
Initially, Plexus and CCLS set-up a single national fulfillment service facility in Toronto, Ontario that provided warehousing, fulfillment, and final mile delivery for Ambassadors across the country.
As Plexus’ Canadian volumes and delivery densities grew, CCLS supply chain engineers designed and implemented a more cost-effective and customer-responsive model by adding a second fulfillment center in Calgary, Alberta for western Canadian orders.
Since partnering with CCLS on their Canadian expansion, Plexus has built a significant market in Canada and grown their customer base. With a focus on continuous improvement, CCLS ensures that the program in Canada is customer-driven, cost effective, and highly efficient.
The partnership has assisted Plexus’ growth and success in the Canadian market by:
More Competitive Market Positioning
- Ability to provide more products for sale in the Canadian market with ‘on-the-ground’ Health Canada licensed facilities
Improved In-stock Planning, Forecasting, and Expiry Date Management
- Plexus receives full end-to-end systems visibility from CCLS — from inbound dock to delivery porch
Dynamic Last-Mile Delivery Performance
- National and regional multi-carrier network provides service options to meet fluctuating volumes for peak periods, while maintaining on-time delivery performance
An Improved Customer Experience
- CCLS provides Plexus with complete order and shipment visibility – which allows Plexus’ customers to track their orders on-line in real time – providing them with a first-rate e-commerce experience
- With CCLS fulfillment centers located close to Plexus’ national customer base, delivery time to customers across the country are fast and reliable – even to remote, hard-to-reach areas of Canada
- Order accuracy is also a key factor in customer satisfaction; CCLS exceeds Plexus’ target in getting orders right the first time.
looking ahead: continuous improvement and cost efficiency
As they continue to grow in Canada, both Plexus and CCLS see further opportunities for continuous improvement and cost efficiencies. Leveraging CCLS’s strong resources in account management, continuous improvement, and supply chain design and engineering, Plexus is positioned to continue to drive their growth in Canada efficiently and cost-effectively.