Boosting Operational Excellence

JAFRA, an international manufacturer and direct-sales marketer of skin care and beauty products, prides itself on superior customer service. As CEO, Connie Tang, was navigating the business through a major turnaround during an economic recession and, knew bolstering operational success in preparation for future growth was necessary to prevent the challenges of rapid expansion.

Staying three steps ahead 

Connie and her team initiated an extensive analysis of JAFRA’s warehouse and distribution operations. They explored alternatives to inform critical decisions for the future that provided the most flexibility. She sought to answer some of their toughest questions: Are we fit for the future growth we are expecting? Should we maintain two U.S. distribution facilities, one on each coast? Or consolidate the two facilities into one centrally located operation? Do we go with a third-party logistics (3PL) provider or remain an in-house operation?  

Weighing the Options

On one hand, consolidating operations into a single facility meant not having a secondary backup in the event of a natural disaster or a catastrophe, such as a fire. 

On the other hand, when evaluating the costs, which included overhead, fixed labor, inbound and outbound freight, along with service impacts, capital requirements, and one-time expenses, consolidating the distributions operations would significantly reduce expenses. 

Consolidating into One Facility

Since contingencies and disaster-recovery plans could be established with third-party logistics partners to mitigate emergency disruptions, consolidating into one centrally located facility was ultimately  the smart way to go. 

After extensive research and considerations of geographic location, size and availability, competitive pricing, inbound and outbound freight costs, and a multitude of other factors, Connie and her team selected the new location: Dallas, Texas.

This central location afforded JAFRA the opportunity to deliver more balanced service levels to all of its independent business owners and customers across the country. Applying 5S and Lean Six Sigma processes allowed JAFRA to build improvements into the new facility and ensure continuous best-practices and overall operational efficiency.

Sustained Operational Excellence

From just a strategic vision to a successful reality, the new JAFRA distribution facility provided expansion opportunities for expected future growth and reliable direct to customer delivery service, while annually saving more than $1 million in running operational costs.