Supply Chain Management and Warehouse Strategy Behind iHerb’s Fast Delivery

iHerb achieves fast delivery through a sophisticated supply chain management and warehouse strategy that focuses on optimizing inventory, supplier collaboration, and efficient fulfillment processes. The company partners with SPS Commerce to enhance inventory management by leveraging Electronic Data Interchange (EDI) with over 800 suppliers, enabling faster, more accurate order processing and real-time data for demand forecasting and replenishment. This collaboration reduces manual errors and allows planners to focus on optimizing inventory levels and delivery schedules.

iHerb operates multiple fulfillment centers, including climate-controlled warehouses in South Korea and Hong Kong, which serve key markets efficiently by fulfilling orders directly from their main hub in California. These warehouses maintain strict environmental controls to ensure product quality, especially for sensitive health and wellness items.

Additionally, iHerb uses regional logistics partners to optimize cross-border shipping. For example, in Southeast Asia, iHerb leverages a Singapore processing hub that offers repackaging, air cargo consolidation, and real-time shipment tracking. This hub enables cost-effective and reliable shipping options, including express air and sea cargo, which help meet consumer expectations for fast delivery while minimizing customs delays and tax exposure.

Overall, iHerb’s supply chain strategy integrates advanced technology, supplier collaboration, and strategically located warehouses to ensure products are available and delivered quickly, accurately, and in good condition, supporting their promise of two-day shipping across a wide product range.