GNC

You can’t manage what you can’t see

GNC is the world’s largest global specialty health, wellness and performance retailer. In 2016, the company set out to solve a number of problems related to vendor performance and a lack of visibility across their supply chain operations.

Data was siloed in various departments and key metrics weren’t being measured. GNC couldn’t accurately determine the number of units in stock. What’s more, their vendor requirements and receiving processes were dated. These systemic issues were contributing to high levels of shipping and compliance variability.

GNC Store
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GNC at a glance

  • Founded in 1935
  • 4,800 retail locations throughout the United States

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  • Franchise operations in 46 international markets
  • $2.45B in annual sales/revenue (2017)

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  • 16,600 employees

The challenge

Without visibility into the entire purchase order lifecycle, GNC could neither isolate the causes of trouble shipments nor adequately address problems with on-time and complete deliveries.

Real-world results

Leveraging the SPS Commerce Supply Chain Performance Management solution, GNC:

  • Gained complete visibility into every part of the purchase order lifecycle
  • Isolated the precise causes of trouble shipments and vendor compliance problems
  • Raised their ASN compliance rate from 76% to 92% resulting in higher performing inventory

Extended POs and siloed departments

GNC had, over time, become a highly siloed business, and individual departments were starved for information. Data for key metrics resided in the distribution center and was inaccessible to other departments.

GNC also lacked visibility into what was open or closed on their purchase orders. Health-food manufacturers and wholesalers are frequently shipping against backorders, extending the purchase order lifecycle. Staff at GNC knew neither when the product was received nor how much product was received at a given time.

By late 2017, GNC’s ASN compliance had fallen to 76%. They knew they had a fundamental problem with visibility, and that’s when they brought on SPS Commerce. Without relying on GNC’s busy IT department, SPS identified the precise issues contributing to falling ASN compliance rates.

“Getting up and running with SPS was a seamless process. With SPS, we have true visibility into our entire operation. Their tools allow us to bring together warehouse managers, directors, salespeople and EDI departments from all the companies we work with, large and small. SPS is absolutely a game changer. I can’t recommend them enough.”

—Marty Hahn, Director of Vendor Relations, GNC

GNC also relied on SPS to gain visibility into and control over their inbound shipments. In a little over a year, their ASN compliance rate has risen from 76% to 92%, resulting in higher performing inventory.

Bridging the departmental divide

Now, GNC is immediately aware of any issue related to any one of their job functions. Buyers, for example, are now able to work a trouble shipment and get information back to GNC’s distribution centers. Receivers can easily enter a trouble shipment along with images or other identifiers. This information is then automatically shared with the corresponding distribution center and buy team.

At GNC, directors can automatically connect and validate PO information, delegate tasks and take actions across departments.

Build a more consistent, predictable and profitable supply chain

The SPS Commerce Supply Chain Performance Management solution transforms the operational center of any business from a cost center into a margin contributor.

Solution features

  • Automated and manual auditing: Secure database access for compliance information and unlimited manual or mobile audits
  • Business-speed performance monitoring: Automatically identify and report disruptions that add cost and reduce profitability
  • Fortress-level data security: Secure hosting and foolproof backups
  • No integration needed: Minimal setup required—just provision data access
  • Reduce supply chain days: Unified view enables continuous improvement
  • Out-of-the-box collaboration tools: Align partner ecosystems toward shared goals

SPS helps us get more out of the data we already collect, and it saves us an incredible amount of valuable time.

– Marty Hahn, Director of Vendor Relations, GNC

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