How Illuminations Unified Retail and Direct Fulfillment in One Scalable Distribution Center

The Client: Illuminations

Illuminations, a specialty retail brand known for premium candles and home decor, experienced rapid expansion across both store replenishment and direct-to-consumer channels. As growth accelerated, the company needed a distribution model that could support two different order profiles from one shared inventory base.

FloStor partnered with Illuminations to design and implement an integrated distribution strategy that improved productivity, controlled cost, and preserved expansion flexibility.

The Challenge

• Capacity Constraint at Existing DC: The legacy Petaluma facility had reached operational limits and could not support planned growth.
• Dual Fulfillment Complexity: The operation needed to support full-case retail replenishment and each-pick direct orders simultaneously.
• Geographic Service Mismatch: A West Coast-centric footprint was inefficient for expansion concentrated in the eastern U.S.
• Shared Inventory Precision: Roughly 1,500 SKUs required accurate control across two workflows with different handling behaviors.
• Capital Gap Pressure: Initial full-capacity concept was approximately $6M while available budget was about $2.8M.

The Solution

FloStor delivered a value-engineered, phased implementation in a new Kentucky distribution center, designed to handle both retail and direct channels in one integrated environment. The strategy prioritized immediate throughput targets while embedding modular capacity expansion for future growth.

By sequencing investment and deploying scalable infrastructure, Illuminations met near-term operational requirements without overcommitting capital upfront.

Systems Used

• Phased Modular Distribution Design: Capacity for current demand with a pre-planned path to expand toward long-term store growth.
• Multi-Level Retail Pick Modules: Three-level flow rack structure with mixed storage media for different SKU velocities.
• Batch-Based Store Replenishment Flow: Full-case pick processes were optimized for high-volume store shipment efficiency.
• Direct-to-Consumer Pick Integration: Each-pick operations were integrated with shared inventory and RF-guided workflow control.
• Conveyor and Shipping Lane Controls: Powered transport and lane sort logic improved outbound sequencing and dock performance.

The Power of Integration in Action

FloStor’s integrator model unified layout engineering, material flow, controls, and operational logic across two distinct fulfillment modes. Instead of running retail and direct operations as competing processes, the new design coordinated them around a common inventory and synchronized execution rules.

This integration produced stronger throughput and labor performance while maintaining adaptability for future expansion and evolving demand patterns.

The Results

Illuminations transitioned from a constrained legacy DC to a scalable, high-performance distribution platform that supported both channel growth and tighter cost control. The new operation handled peak demand more effectively and delivered significant productivity improvements across picking functions.

The phased investment strategy also protected capital by aligning expansion spending with actual business growth milestones.

Why This Worked

This project worked because Illuminations and FloStor balanced operational ambition with financial discipline. The solution combined channel-specific process design, modular infrastructure, and phased investment timing into one coherent execution model.

• System-Level Design: Retail and direct workflows were engineered together around shared inventory logic.
• Value Engineering Discipline: Essential capabilities were delivered within budget while preserving future expandability.
• Modular Expansion Path: Capacity growth could be added without major disruption to ongoing operations.
• People-Conscious Execution: Operational improvements considered employee usability and day-to-day work conditions.

Related Services

• Distribution Network and Facility Strategy
• Retail and E-commerce Fulfillment Integration
• Conveyor, Pick Module, and Controls Engineering
• Phased Capital Planning and Lifecycle Support