Scott Saeger on Modernizing GNC’s IT for Business Health

When Scott Saeger thinks about vitamins, supplements, and nutrition, he envisions people interested in living a healthy lifestyle. So he was alarmed to see that GNC, a leading health and wellness company, wasn’t investing in technology, something he says is necessary for the long-term health of any business, never mind its employees.

“Over the last 15 years, our company hasn’t invested in technology to support crucial systems that are core to the business. Allowing legacy systems to exist cost us real world dollars and technical headaches galore, but we’re fixing that.”

Among the changes: a new mobile point-of-sale platform for GNC’s 2,438 stores, new credit card terminals that allow contactless payment via PayPal and Venmo, and a real-time inventory system.

“We weren’t modern enough, and we were spending just enough to keep the lights on. Now we’re making real investments in IT, not just looking at how to reduce IT costs.”

Making Selling Easier

Saeger says implementing the new POS system — which replaced one that was 16 years old and running on Windows XP — was done entirely remotely in just 11 weeks.

“We didn’t have the opportunity to fail. The old system was a security risk. Microsoft stopped supporting the operating system as well as stopped delivering security patches.”

The cloud-based API allowed GNC to launch initiatives like curbside pickup, same-day delivery, and online sales. Stores also benefit from real-time inventory information that wasn’t previously available. Plus, staff can attend events — like Tough Mudder, triathlons, and bodybuilding competitions — and promote what they sell by using the website like a catalogue.

“Now we can go to where our customers are and participate in the same events our customers love.”

Smarter Inventory, Better Fulfillment

Previously, if a customer wanted a specific product, staff would scan GNC’s distribution centers to check stock. If available, they’d ship it to the customer. The new system not only checks distribution centers but also scans inventory across all 2,438 stores nationwide.

“If a product you want isn’t at your local store, a salesperson can direct you to a nearby location or ship it directly to your house. That couldn’t happen with our old system. It’s a game-changer for not only GNC, but also for our customers.”

This shift has led to an increase in e-commerce revenue. Saeger estimates 60 to 70 percent of online orders are now fulfilled at the store level — not from distribution centers — saving significantly on shipping and getting products to customers faster.

Upgrades Across the Board

On the back end, Saeger and his team have moved much of GNC’s environment to the cloud — but not everything. The company implemented its own automated API management platform for securing, publishing, and analyzing data, allowing it to retire old systems.

Before Saeger, GNC’s CIOs didn’t challenge the lack of investment. The Pittsburgh-based company was running on legacy hardware and operating platforms so old that finding support was a challenge.

“Not investing also can be a risk to GNC’s financial future, but the key is finding balance.”

Partnering with vendors and investing in new solutions — like Microsoft Dynamics 365 — is a monumental leap forward. The platform was set to roll out by the first quarter of 2022, giving everyone from executives to store managers access to the same real-time data.

“We will have an authoritative record that’ll be shared with the warehouses, franchises, corporate stores and back-end business. Investing in technology means more than just buying new servers, switches and laptops. It’s about business enablement and hyper-focused customer experiences.”

All Roads Lead to Pittsburgh

A native of Texas, Saeger started his technology career in Houston as a software developer. Over the next five years, he became a manager of technical application development and deployment for ExxonMobil.

He then spent two years as director of IT for Gurwitch Products, followed by more than six years at Hewlett-Packard, where he led teams ranging from global Citrix support to business-critical systems and global regulatory compliance.

From there, Saeger spent two years as vice president of IT for the Eads Company, then three years as vice president of enterprise applications and operations supporting the Harry and David brand for 1800flowers.com. With GNC since 2018, he says the work has been challenging but meaningful.

“There are challenges with building a plane while in the air, but with proper planning, executive support and a team that believes in the vision, anything is possible.”