Scentsy had built a thriving fragrance business, but their warehouse operations were becoming a growth bottleneck.
Associates were walking serpentine paths through standard shelving, using paper pick sheets, and processing about three orders at a time.
This system supported the company’s growth for years, but new challenges, such as seasonal catalog changes and demand spikes, presented an opportunity to scale operations and better support their team and growth trajectory.
Enter Dematic.
Over 10 months, they helped Scentsy evolve its picking process from manual driven to automated precision. Associates now handle 18 orders simultaneously, with minimal physical and cognitive strain.
The result: 50% productivity gains within the first year, plus the operational flexibility to better handle seasonal swings.
This deep dive breaks down the approach. You'll see the assessment process that identified bottlenecks, the custom batching software that multiplied throughput, and the implementation strategy that focused on preventing operational disruption. Plus, tactical advice for evaluating automation in your operations.
What’s Inside
The Scene → Manual processes prevented scaling
The Assessment → Physical constraints and operational inefficiencies pointed toward automation
The Solution → AutoStore empowered by Dematic plus custom software to maximize batching and reduce decision-making
The Implementation → 10 months from contract to go-live with minimal disruption to operations
The Results → 50% productivity increase in less than a year
The Playbook → How to successfully deploy warehouse automation
Full Q&A → With Jim McDonough, Senior Account Manager at Dematic
Scentsy’s growth sparked a need for scalable operations
Scentsy built a strong business around fragrance products, supported by a carefully orchestrated manual warehouse operation. However, as the business grew, so did the volume and complexity of orders. While some might consider this a challenge, Scentsy saw it as an exciting opportunity to evolve the processes that had worked well so far.
The company had been processing high-volume orders using manual systems - paper-based picking, standard shelving, and associates running serpentine paths through the warehouse with carts holding three orders at a time. But with continued growth, Scentsy knew it needed to streamline operations further to stay ahead of demand and maximize associate productivity.
In addition to expansive business growth, the company faced another challenge: extreme seasonality. Scentsy's catalog changes happen multiple times per year, creating massive spikes in demand as customers rush to try new scents. This made it challenging to manage these peaks and valleys within the constraints of a manual system.
Rather than replacing a successful system to address these growing pains, Scentsy amplified what was already working by giving associates the tools to move faster, adapt to demand fluctuations, and scale with confidence as the business continued to grow.
Mapping constraints to find the right solution
When Dematic walked Scentsy's warehouse, they mapped the constraints that would dictate what solutions could work:
Physical constraints:
Low clear height that ruled out most traditional automation
Only utilizing half of available vertical space with existing shelving
pace limitations requiring dramatic storage density improvements
Operational constraints:
Extreme seasonality requiring flex capacity without proportional labor increases
High SKU velocity with untapped batch picking opportunities
Strong workforce culture that needed preserving, not disrupting
The key insight: Associates spent significant time reading, interpreting, calculating, decision-making, and closing the distance between their next pick. The physical act of grabbing products was a small component of the total cycle time.
That's all processing time of the human brain. We immediately picked up on that and pursued solutions that would reinforce efficient workforce
The assessment also revealed an opportunity for batch picking. Scentsy was picking to three orders simultaneously, but their SKU profile and order patterns suggested they could batch much more aggressively if the system could handle the complexity.
AutoStore plus custom software to maximize batching and eliminate decision-making
Dematic recommended AutoStore as the core technology to enhance Scentsy’s operations, paired with comprehensive warehouse execution software that could handle both automated and manual picking areas.
Why AutoStore made sense
The automated storage and retrieval system (AS/RS) fit Scentsy's constraints perfectly. AutoStore's vertical storage design optimized their use of vertical space while dramatically increasing storage density. The goods-to-person model eliminated associate travel time and kept workers stationary at ergonomic picking stations.
More importantly, Dematic software empowered the AutoStore to present bins in optimized sequences, removing significant cognitive load from associates. No more reading papers, searching shelves, or figuring out which order they belonged to.
How do we install a solution that keeps the associate there, keeps them at a stationary location? Employee ergonomics. But take away that processing need of the human brain to identify how many of this SKU do I need, and which open order does this go to?
Custom software for intelligent batching
The real breakthrough came from Dematic's software layer. Instead of picking to three orders at once, the new system enabled associates to work with 18 active orders per picking session.
The software analyzed order profiles and SKU affinity to batch orders with similar items. When a bin was presented, associates might pick the same product for multiple orders on their cart, dramatically reducing touches and increasing throughput.
We were able to combine orders that have like SKUs and have associates pick those orders with like SKUs on the same pick cart. So not only were we taking advantage of the batch affinity, but we were also really taking advantage of their order profile.
Ten months from contract to go-live with minimal disruption to operations
The implementation required careful coordination to avoid impacting Scentsy's ongoing operations. To avoid disruption, Dematic had to work around active fulfillment operations.
1. Minimizing operational disruption
Scentsy displaced their existing picking area to another part of the warehouse during construction. Dematic closely coordinated with Scentsy to ensure needs were being met for both teams during installation.
At the end of the day, we are not there to disrupt, and we need to make Scentsy getting their product out the door a top priority for both teams.
The analysis and concepting timeline stretched eight to 12 months from initial discovery to contract execution, with about 10 months dedicated to actual deployment after contract signing. Much of the early timeline was spent building confidence in the solution and analyzing operational data rather than technical development.
2. Collaborative approach to customization
Rather than designing in isolation, Dematic and Scentsy worked closely together to understand their specific needs and preferences. The software solution leveraged as much out-of-the-box functionality as possible to control costs, while adding targeted customizations where Scentsy's operation required it.
We do not want to design in a vacuum and potentially miss the mark with our clients. We want to understand their needs and desires.
50% productivity increase in less than a year
The transformation delivered immediate and measurable improvements across multiple dimensions of warehouse performance.
The most significant gain came from productivity. By eliminating travel time, reducing cognitive load, and optimizing batch picking, Scentsy achieved a 50% increase in picking productivity within the first year of operation.
Through that, we saw a 50% productivity increase in less than a year in the system at Scentsy. So, they were really seeing strong productivity increases well over previously identified metrics.
The solution also delivered the operational flexibility Scentsy needed to handle their seasonal demand patterns. The automated system could scale up and down more effectively than manual processes, reducing the need for temporary solutions during peak periods.
Beyond the numbers, the project achieved its cultural objective: empowering existing associates rather than replacing them. The operation that had been seeking technology to unlock full potential was now operating at the cutting edge of warehouse automation.
Scentsy truly has a fantastic employee and associate culture. They move very, very fast and with purpose. And one of the things I immediately recognized was that we really needed to find a solution that's only going to empower this great culture that they've built.
How to successfully deploy warehouse automation
Warehouse automation projects often fail not because of the technology, but because teams rush to solutions before understanding their actual operational constraints.
Scentsy's transformation from manual, paper-based picking to AutoStore automation delivered 50% productivity gains because they got the fundamentals right: thorough discovery, solution matching, and implementation planning.
This playbook walks through the systematic approach that made their project successful — from identifying automation-ready operations to managing deployment without disrupting ongoing fulfillment.
1. Start with physical constraints, not vendor demos
Scentsy's low clear height eliminated many automation options immediately, but that constraint led them to the right solution. AutoStore was one of the few systems that could maximize their vertical space within height limitations.
What to do:
Measure clear height, floor load capacity, and available square footage before any vendor meetings
Calculate current storage density and identify unused vertical space
Map seasonal facility usage patterns to understand flexibility requirements
Document building limitations that might affect installation (power, HVAC, structural)
Why it works: Physical constraints eliminate 80% of automation options upfront. Understanding this early prevents wasting months evaluating incompatible technologies and forces you toward solutions that actually fit your building.
When to use this: Before your first vendor conversation. Most automation companies will try to make their solution work even when it's not the right fit.
2. Target cognitive load, not just physical tasks
Scentsy's opportunity wasn't just walking distance — the mental processing time associates spent reading paper, matching SKUs to locations, and counting quantities for multiple orders was also a contributor to some inefficiency.
What to do:
Time how long workers spend processing information versus actually picking items
Count decision points per task (which SKU, how many, which order, which location)
Track errors that stem from information processing rather than physical mistakes
Why it works: Dematic reduced cognitive load from Scentsy's picking process. Associates no longer need to read papers or make decisions — the system presents exactly what they need in optimized sequences.
Tradeoff: You need sophisticated software to handle the complexity that human brains manage. Standard WES functionality won't be enough.
3. Design around aggressive batching, not individual orders
Scentsy jumped from picking three orders simultaneously to 18 per associate by leveraging automation's ability to handle complexity that can overwhelm manual systems.
What to do:
Analyze SKU affinity patterns across your order profiles
Calculate potential batch factors based on common items appearing in multiple orders
Design picking stations and carts to accommodate multiple orders simultaneously
Configure software to group orders with similar SKUs for the same picking session
Why it works: When the AutoStore solution presented a bin to Scentsy associates, they could pick the same item for multiple orders in one motion. This eliminated the need for multiple trips to the same SKU and dramatically reduced total touches per order.
Critical requirement: Your downstream packing operation must be able to handle increased complexity. Make sure sorting and quality control can manage larger batch sizes before implementing this approach.
4. Schedule around your peaks, not vendor availability
Scentsy's seasonal catalog changes created massive demand spikes. The 10-month implementation timeline was built around avoiding disruption during those critical periods.
What to do:
Map seasonal demand patterns and identify minimum viable installation windows
Plan major construction (floor, power, network) during your slowest periods
Arrange temporary space for displaced operations during construction phases
Schedule installation work on nights and weekends when fulfillment operations are idle
Build two to three month buffers before peak seasons — never go live right before your busy period to avoid impacts to fulfillment
Why it works: Dematic worked around Scentsy's active fulfillment schedule. By displacing operations to another area of the warehouse, Dematic and Scentsy could coexist and meets both team’s goals. Zero missed shipments, zero customer impact.
Timeline reality: Based on size and scale of the automation systems, start vendor conversations as early as possible, ideally affording at least 18 to 24 months before target go-live. Quality automation partners book up early, especially for year-end deployments.
5. Customize software for productivity gains, standardize everything else
Dematic kept Scentsy's solution mostly standard while customizing the batching logic that delivered the 50% productivity increase. That's where development dollars should go.
What to do:
Document current workflows and identify which steps actually differentiate your business
Ask vendors to demo standard functionality first, then discuss specific customization needs
Focus custom development on areas with measurable productivity or accuracy improvements
Calculate ROI for each potential customization - most aren't worth the cost and complexity
Why it works: Standard features are cheaper, more reliable, and easier to support long-term. Scentsy got maximum value by customizing only the order batching intelligence that their specific SKU profile required.
What to avoid: Replicating your current manual process in automated form. Often that process is the problem you're trying to solve.
6. Position automation as workforce empowerment, not replacement
Scentsy's strong culture became an implementation asset because leadership framed automation as empowering associates, not eliminating positions.
What to do:
Communicate how automation removes frustrating inefficiencies that workers already hate
Involve floor supervisors and experienced associates in system design conversations
Publicly celebrate productivity improvements and ergonomic benefits
Plan comprehensive training that covers new workflows, not just button-pushing
Create internal champions who can speak peer-to-peer about the benefits
Why it works: Associates moved from paper pick lists and walking serpentine paths to operating cutting-edge technology. The same people who struggled with manual inefficiencies became automation success stories.
Cultural insight: Scentsy's existing workforce was already moving with purpose in its manual operations. Automation amplified that culture rather than fighting against it.
7. Run parallel operations during transition to eliminate risk
Scentsy maintained full fulfillment capacity by displacing their picking area to another part of the warehouse while AutoStore installation proceeded.
What to do:
Identify temporary space that can handle displaced operations during construction
Plan parallel operations for two to four weeks during system commissioning and testing
Test new processes with small order volumes before switching full operations
Keep manual backup processes available for 30 to 60 days after go-live
Train associates on both systems until automation proves stable
Why it works: Parallel operations eliminate the risk of missing shipments if commissioning takes longer than expected or initial performance doesn't meet targets.
Resource requirement: You need 1.5x normal space during transition — factor this into facility planning and budget.
Q&A with Jim McDonough
If you want to go deeper on this automation project, here's the full conversation I had with Jim McDonough, senior account manager at Dematic.
We cover the complete transformation from how Scentsy went from manual, paper-based picking to a 50% productivity increase with AutoStore™ powered by Dematic in under a year. Jim breaks down the assessment process, the technical challenges of working within low clear heights, and how they customized the solution to handle Scentsy's seasonal demand fluctuations while preserving their strong employee culture. He walks through the 10-month implementation timeline, the economics of a major CapEx investment, and tactical advice for building ROI models that align with leadership priorities.
Table of Contents:
This conversation has been edited for length and clarity.
1. Identifying the Challenge
What were the core operational challenges Scentsy was facing when they first reached out to Dematic?
Jim McDonough: Scentsy was using a very efficient manual pick process with high units per order. Everything was paper based with manual movement and picking. Associates would run serpentine through their picking shelves with carts that would hold three orders at a time.
The big question they brought to Dematic was: how do we become more efficient while retaining our staff and empowering them to be even more efficient?
Scentsy experiences significant demand fluctuations throughout the year tied to catalog changes. When they promote new partnerships or new scents, there's mass ordering afterward. These fluctuations were hard to manage.
When you first walked their warehouse, what specific observations pushed you toward AutoStore as the solution?
Jim McDonough: I always look at two things: physical constraints and operational realities.
On the physical side, Scentsy had a fairly low clear height, but there was a strong opportunity to utilize more of their available vertical space. The challenge was that low clear height meant only a subset of solutions would work.
Operationally, I saw a lot of movement and a lot of grabs. This approach gets the job done, but it can lead to added effort which impacts overall efficiency.
What impressed me was that Scentsy has a fantastic employee culture. I immediately recognized we needed a solution that would only empower this great culture, not disrupt it.
2. Custom Solution Design
How do you balance out-of-the-box functionality with customization?
With every solution we deploy, we leverage as much out-of-the-box functionality as possible because it is:
Standardized
Cost-effective
Readily available
But there's always some nuance, and we want to be attentive to that. We ask questions, and if there are deviations from the standard, we take the customer through a journey to understand what the software will get them and the benefits of our approach. Then we determine if it makes sense to proceed with either a modification to the off-the-shelf solution or look at customization to deploy something that's best-in-class but tailored to their operation.
What specific improvements did you achieve with Scentsy's batch picking process?
We were able to build a custom-tailored solution that really took advantage of their batch factor, which represented a significant untapped opportunity. Previously, they were picking to three open orders at a time per associate. In the new solution, they're now picking to 18 active orders per associate.
We drove them toward more of a batch pick mentality because their SKU affinity and order profile showed that per bin presentation, there was opportunity for multiple grabs to fulfill multiple orders on one cart.
3. Managing the Rollout
Can you walk through the major milestones from discovery to final implementation?
Jim McDonough: From discovery walkthrough to contract execution, we bridged roughly 8 to 12 months total. Scentsy looked at solutions from Dematic and others but couldn't find a great fit due to their physical and operational challenges. Some of the frequent technologies in our industry just would not work for Scentsy.
How did Scentsy continue fulfilling orders during the 10-month installation period?
Jim McDonough: It's all about alignment and communication. We needed a large space from them, and we were very transparent about when we'd need certain areas at certain points during the project. Scentsy was equally transparent. At the end of the day, we're not there to disrupt—making sure Scentsy gets their product out the door is a top priority for both teams.
What specific steps did you take to minimize operational disruption?
Scentsy displaced their previous pick shelving to another location within their warehouse. While transitions like this naturally come with challenges, the team approached the change with a clear understanding of the long-term benefits.
To minimize the impact, Dematic focused on:
Getting equipment and pieces of the AutoStore solution up as quickly as possible
Working around them - setting expectations and coexisting in the same space
Maintaining open, transparent communication about our needs while being true partners about their needs
4. Measuring Success
What kind of performance improvements have you seen since implementation?
Jim McDonough: We've seen a 50% productivity increase in less than a year in the system. They're seeing strong productivity increases well over previously identified metrics, and they're quite happy with the performance of their associates.
The solution deployed manages not only the AutoStore but also a separate pick area for certain SKUs that, whether due to size, volume, or other reasons, don't make sense to store within the AutoStore. We have a comprehensive solution that handles their entire operation while maintaining that flexibility for different product types.
5. Project Financing
How did the financing work for a project of this scale?
Jim McDonough: This was a CapEx model — a true capital investment. We structure our proposals with a down payment to kick off the project.
From there, we have flexibility to structure payments depending on customer needs. Every customer has different payment terms, and we like to be flexible and have conversations about their needs and financial position.
6. Lessons Learned
What advice would you give to operators thinking through ROI for a major automation overhaul?
Jim McDonough: Every client is different. Every customer values different things. Client priorities we commonly encounter are:
Employee empowerment: Clients that are very happy with their associates and want to empower them — Scentsy was one of those. They weren't looking to push anybody out; they wanted to empower the great folks they had.
Operating expense reduction: Other clients focused on operating expenses and needing to reevaluate labor costs.
Space optimization: Some clients focus on space and space savings — they're tapped out in their warehouse and deciding between building something new or optimizing current space.
Equipment replacement: Others want to replace existing equipment, like forklifts, because they're tired of maintenance costs.
The key is that Dematic always comes to the table with tools to understand what's important to each customer. We ask: what are your priorities? Then, we build the ROI model around those priorities.
