From Illinois Business Journal news services
TROY — Nutrisystem, a national provider of weight-loss products and programs, has opened a new frozen foods warehouse at 7714 Commercial Drive in Troy, Ill.
The 40,000 square feet of warehouse space is designed to increase operational and logistical efficiency and decrease shipping time.
The operation is being done through an agreement with a long-standing distribution and fulfillment partner of more than a decade, OHL, a third-party logistics provider.
With the addition of this, its sixth warehouse, the company is able to get more product out the door and to the customer more quickly, officials said.
Nutrisystem said the warehouse demand was due to the increased popularity of its Nutrisystem Uniquely Yours program, which gives customers the ability to choose a large selection of frozen options.
The new space allows Nutrisystem to increase its capacity by 60 percent and expand its production line to support additional SKU counts (a reference to a “stock keeping unit” code used to track items for inventory.)
Some 99 percent of customers will now receive their orders within two business days of the order leaving the warehouse as opposed to 80 percent of customers today.
“Our goal is to provide cost-effective supply chain solutions that at the same time deliver high levels of customer service and satisfaction,” said David Burton, senior vice president operations and general manager of retail at Nutrisystem.
The Troy facility is now fully operational and added 50 to 70 new jobs to the local community. It also sets the stage for continued retail expansion as well as the re-launch of the South Beach Diet brand, which Nutrisystem acquired in December 2015.
In addition to this warehouse, Nutrisystem also has three warehouses in Allentown, Bethlehem and Chambersburg in Pennsylvania, and two warehouses in Sparks, Nev.