Herbalife International knew it needed to improve picking methods. Distributors were receiving the wrong products. Workers were spending too much time correcting orders that should have been right the first time. The order accuracy rate was low.

All was a result of filling orders by hand. Pick lists failed to give workers the locations of products, leaving them to wander the shelves in search. Tracking consisted of checking items off a paper list.

To fix the problems, Herbalife installed pick-to-light systems at its two distribution centers in Memphis, Tenn. and Los Angeles. The systems vastly improved picking speed and accuracy at the 70,000 and 82,000 square foot facilities, respectively.

The pick-to-light system reduced warehouse staff and overtime, trimming costs. The Memphis facility reduced staff by 30%. The Los Angeles facility reduced overtime hours by 40%.

In addition, the pick-to-light systems identify the type, quantity and location of Herbalife's weight management items, nutritional supplements and personal care items. Taking that job away from workers increases the number of orders filled, allowing both facilities to handle 50% more orders.

When an order is received in the DC, a computer runs a customized weighing and cubing program to determine proper packaging sizes for the products that will be picked and shipped. Boxes receive bar coded labels that give the contents, weight and shipping method of the order.

When a box reaches the pick zone, workers scan it into the pick-to-light system, which tells them how to fill it. Each location where orderpickers must select items is identified by a light. Next to that is a display that shows the number of items to pick. The worker turns off the light when the pick is completed.

The packing list is the only paper handled by pickers. "There is no need for someone to continually review a document to determine how to manage that order," says Gary Meyer, director of Herbalife's Memphis facility. "It's true paperless picking and processing."

An auto-casing feature allows pickers to choose products by the case in addition to individually. It is particularly helpful for fast delivery of popular items that sell in bulk.

After a carton is filled, a conveyor carries the order to a weigh station, which compares the actual weight to the weight on the label. Orders with discrepancies of more than half a pound are immediately diverted to a quality control inspector who visually inspects them.

Orders are "still subject to mistakes, but we can now identify who's making the mistakes, and fix the order before it is shipped," Los Angeles DC director Randy Pinter explains.

Herbalife visually inspects almost every shipment. As a result, the company catches almost every mistake before it leaves the facility. This practice increased the company's accuracy rate from 95% to 99.9%. It also cut costs associated with correcting order mistakes, such as reshipments.

Today, Memphis is shipping 50% more orders daily with the new system. Los Angeles is ahead by 61%.

"We try to use our distribution as a competitive tool," says David Kratochvil, senior vice president of Herbalife distribution. "We're picking faster, better and keeping our costs in line too."