Quality, Data, Logistics and Accountability Key For Food & Nutrition Client's FDA-Approved Shipments

The Challenge 

A major manufacturer of infant formula, supplements and other nutritional products for babies, toddlers and children distributes 3.5 million product sample packages every year to expectant mothers. 

This package requires an FDA-approved facility with the best quality control available in the industry.  The client also needs a closed-loop reporting system that records every shipment with lot numbers, provides 100-percent accountability for product, and maintains pinpoint accuracy within each order.  In addition, in-home delivery timing must be precise and each individual package must be able to be pulled from production at any given time.  

Solution

Direct Group – with its quality-certified workflow processes and personnel – put together a program to meet the client’s exacting standards.  The expectant mother package is composed of MICR-printed checks, individual and overwrapped literature, product samples, packing material and an outer carton.  The final kit is shrink-wrapped, labeled and palletized for transportation by a small parcel consolidator to nationwide bulk mail centers.  Using Six Sigma methodologies within our ISO-9001 certified facility, Direct Group established accountability immediately with extensive data quality processes that track information precisely throughout the production and distribution process.  These processes include bar-coded work instructions, tracking tickets, pallet flags, tabletop and floor scales and camera systems.  Direct Group also established dedicated teams responsible for account management, information technology, inventory management, production and quality.  

Results  

Direct Group now ships 3.5 million packages per year for this client, all with complete accountability and quality assurance.  Efficiency gains have resulted in savings of more than 40 percent over the five years working with this client, and Direct Group has reduced inventory turns from more than 12 weeks to 6 weeks due to tighter management and forecasting tools. Our client has been so pleased with our work that they recently signed on for a second renewal period, naming Direct Group as the exclusive distribution provider for their consumer sampling programs. Through continuous improvement initiatives, Direct Group continues to assess new package designs and workflows that could result in additional savings.