The Secret To dōTERRA’s Supply Chain Success

Paul Clark

To say essential oils company dōTERRA is growing fast would be an understatement.

Seven months after its founding in May 2008, the company reached $1 million in sales. The following year, the company experienced its first million-dollar month. By 2012, it was regularly earning $1 million every day.

Today, dōTERRA is a billion-dollar company with corporate offices in 17 countries, customers in nearly 100 nations, and more than 3 million Wellness Advocates (individual distributors) worldwide.

Rapid growth can often be a strain on a company’s supply chain operations. To combat this – ensuring dōTERRA’s supply chain remains quick, simple, and agile – the organization recently embarked on an ambitious digital transformation project in partnership with professional services firm Deloitte.

Digitalizing its supply chain will help dōTERRA achieve two goals:

1. Enable real-time visibility into the company’s internal operations to facilitate decision making

With a digital supply chain, dōTERRA can provide real-time data to its employees, ensuring all the right people have access to all the insight they need to do their jobs more efficiently and make more informed, timely decisions.

“Our vision is for every knowledge worker in the company to have a dashboard-level view they can drill down into to see their main priorities,” says dōTERRA CIO Todd Thompson.

This increased visibility is expected to result in greater efficiencies in the following areas:

  • Resource availability
  • Product production
  • Inventory management
  • Logistics

The next step is for dōTERRA to make more use of advanced analytics. By combining predictive capabilities with real-time data visibility, the company can benefit from more strategic decision-making and improved business performance.

2. Create superior buying experiences that drive future sales and result in greater customer loyalty

With a 68% reorder rate, dōTERRA customers are clearly satisfied with the company’s line of products – especially considering the industry average is a tad below 10%.

But what if the organization could improve upon that rate?

By digitalizing its supply chain operations, this is entirely possible. After all, a digital supply chain puts customers at the center of the business. And with today’s increasingly demanding buyers expecting a new type of experience, customer-centric processes are critical in delivering on that promise.

Currently, customers place approximately 90% of their dōTERRA orders online. These e-commerce buyers crave a convenient shopping experience that can only be accommodated with a quick and agile supply chain.

A nimble digital supply chain will also equip dōTERRA with the ability to support the manufacturing and delivery of personalized products, as well as adapt to constantly shifting market conditions.

By consistently meeting its buyers’ expectations with the help of a digitalized supply chain, dōTERRA will be able to drive future sales and earn greater customer loyalty.

Differentiate your business with a digital supply chain

As a company that sells essential oils, dōTERRA understands a thing or two about the meaning of the word “essential.”

Even though dōTERRA was already thriving, the organization recognized that upgrading its existing supply chain operations was essential to the long-term success of its business. It understood the need to stay ahead of the curve – and the competition – with a digital supply chain that’s more connected, intelligent, responsive, and predictive.

Download this free white paper to learn how your organization can begin reaping the rewards of a digitalized extended supply chain.

 


About Paul Clark

Paul Clark is the Senior Director of Technology Partner Marketing at SAP. He is responsible for developing and executing partner marketing strategies, activities, and programs in joint go-to-market plans with global technology partners. The goal is to increase opportunities, pipeline, and revenue through demand generation via SAP's global and local partner ecosystems.