DC Consolidation and Maximizing Operations – Burt’s Bees

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Published May 20, 2008

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DC Consolidation “The new facility and TCS have increased our efficiency, and we now have short-term and long-term solutions to help ease growing pains. Our customers can continue to expect a quality product delivered on time.” Tony Quartararo, Burt’s Bees, Executive VP Supply Chain

About Burt’s Bees (Taken from company website)

With more than $250 million in sales, Burt’s Bees is the leading manufacturer of earth-friendly, natural personal care products. Their line includes face, body, lip and hair care as well as products for men’s grooming, baby care and outdoor remedies. The 150-plus products manufactured by Burt’s Bees are sold in 30,000 retail outlets throughout the United States, United Kingdom, Ireland, Canada, Hong Kong, and Taiwan.

Burt’s Bees is headquartered in Durham, NC. Due to limited capacity at the main location, a portion of the manufacturing and distribution operations have moved to multiple overflow facilities, including a 3PL facility.

Challenges & Strategies

Burt’s Bees encountered capacity issues due to recent expansion in products and retail clientele. To maintain customer satisfaction, the company needed to assess its current supply chain functions and develop a network solution to meet the new challenges. Tompkins International’ expertise was sought to:

Determine if Burt’s Bees should outsource warehouse space. Due to costs, risks, and timeline concerns of the 3PL operation, Tompkins recommended that Burt’s Bees own and operate the new distribution center (DC).

Manage the implementation of the new DC in Morrisville, NC. Although at startup Burt’s Bees only needed 80,000 functioning square feet of the new 144,000 square foot facility, Tompkins optimized the capacity for future growth.

Procure material handling equipment (MHE). Appropriate to the earth-friendly nature of Burt’s Bees, the MHE procured by Tompkins included a Motorized Drive Roller (MDR) Conveyor that only runs when activated by sensors.

Implement a light version of the Tompkins Warehouse Control System (TCS). The TCS is a full-featured commercial solution for warehouse and MHE control. Designed to be reliable and easily maintained, the TCS incorporates hardware redundancy and extensive internal event logging to provide faster problem resolution.

The Results

Overall, Tompkins provided an implementable solution while maximizing facility capacity, boosting return on investment and minimizing operating costs. With the new sensor-activated conveyor, Burt’s Bees has experienced reduced-energy savings that may reach as much as 40% to 60%. Furthermore, the new DC location improved operations and reduced warehousing and transportation costs. In turn, Burt’s Bees can now consolidate finished goods in one building and meet its growth projections without missing deliveries due to inventory issues.

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