iHerb Case Study

The Company

iherbiHerb is a rapidly growing on-line distributor of nutritional supplements and other healthy products. The company carries one of the largest product selections in this space, and distributes these products around the world. iHerb seeks to lead the industry in quality, price, reliability, and convenience.

Technology plays a key role in enhancing the customer experience and in streamlining operations as shown in the company mission statement which is: “providing the best overall value for natural products through e-simplicity”. iHerb delivers on this mission with an advanced e-Commerce platform and fulfillment centers in California and Kentucky. Through this advanced technology customers enjoy easy reordering, accurate stock information, and the ability to easily browse 35,000 products made by leading manufacturers.

The Challenge

In order to keep up with rapid growth, iHerb needed to quickly upgrade their IT infrastructure. A newly developed order and warehouse management solution was keeping pace with iHerb’s growth, however other parts of their ERP system were increasingly strained. Integration between their order, inventory, and financial systems was inadequate to meet increasing demands. Executives needed better financial information and more timely reports. Areas of increased operational efficiency were identified by eliminating manual entry, and double entry of information originating in the order system, and then re-entered into the financial system.

As the project to upgrade the ERP system began, iHerb recognized the need for improved communications and cross-project management between internal teams including IT, finance, and executive stake holders.

The Results

Spring2 Technologies took a leadership role in helping iHerb implement, integrate, and customize a NetSuite ERP solution. Results included the following:

  • Provided overall project management, including weekly status reports and weekly status meetings.
  • Worked within resource constraints to help prioritize and facilitate results. Defined goals and priorities for the larger project, and then broke into phases for faster ROI and higher efficiency.
  • Fully integrated NetSuite with in-house sales and warehouse management platform.
  • Customized NetSuite purchasing module to match iHerbs method of procurement.
  • Implemented NetSuite Fixed Asset module.
  • Created NetSuite custom dashboards for better executive visibility into iHerb operations.
  • Created automated PO workflows within NetSuite, i.e. based on amount, the PO is routed to the accounting manager, CFO, or CEO.