LOG 302 Operations Management Control
On this session long project, we were tasked with choosing an organization to focus through the term of this course. The things needed to take in consideration when choosing and organization are the layout of the facility, warehouse, quality control, product distribution and last but not least reverse logistics. On this portion of the session long project I will be focusing the facility layout and warehouse of Bodybuilding.com. Bodybuilding.com focuses on helping people change their life style and become a better version of themselves. Bodybuiling.com has changed the lives of millions to include myself. Their website allows people from different backgrounds to easily navigate it, and allow them to encourage others to achieve a better version of themselves and achieve their intended goals.
When it comes to warehouse functions, Bodybuilding.com keeps all of their facilities within the highest standards. Like all companies, they started out small and expanded to where they are now. They started in Boise, Idaho and now have multiple locations in the U.S. their facilities are located in Wisconsin, Nevada, Florida, Pennsylvania and one in the UK. In 2015 their facility went live, and processes/dispatches 14,000 order daily. This allows over 90% of the UK orders to be delivered the next day reducing wait time by 50%. (Gideon Hillman)
With several locations in the U.S. and now in the UK, Bodybuilding.com uses the closest warehouse to deliver any order. This reduces wait time, thus improving customer satisfaction. They are also able to ship to APO addresses, allowing military member who are serving in deployed locations to successfully place orders. Like all industries like Bodybuilding.com they are susceptible to having products removed from the market. In 2012 they were fined $7 million by the FDA for the delivery and misbranded drugs. 5 products were identified as being misbranded as dietary supplements, when in reality they were drugs. (Bodybuilding.com)
They tend to have a good number of supplements on stock at all times, but due to health reasons will sometimes remove products to make sure customers are receiving the product they are paying for. Besides carrying proprietary products, they carry products from different companies. This allows them to reach customers that are solely attracted to a specific brand. It allows Bodybuilding.com to expand to a different clientele, but this comes at a price. When they are “out of stock”, it could mean that the contracted company that has a contract with them is running low and will not be able to fulfil the requested orders. This is a risk that was mentioned on the first case assignment; dealing with inventory managed by vendors.
I believe bodybuilding.com is a great website inspiring people to achieve their intended goal, or at least get started in the right direction. Even though they recently started charging for access to their website, they are only doing this to attract a more selected clientele. There is no telling what will happen to them with the implementation of this new charge.
Bodybuilding.com Career Opportunities! (2017, September 22). Retrieved on December 10, 2017 from https://www.bodybuilding.com/fun/bbcomcareer.htm
Gideon Hillman Consulting. (2016, April 21). e-commerce Logistics is Different. Retrieved on December 10, 2017 from https://www.hillman-consulting.co.uk/articles/featured-articles/e-commerce-logistics.html
May 22, 2012: Bodybuilding.com, LLC and Jeremy DeLuca Plead Guilty in Federal Court to Violating FDCA. (2015, January 28). Retrieved on December 10, 2017 from https://www.fda.gov/ICECI/CriminalInvestigations/ucm305494.htm