Operations
Improving supply chain(1) efficiency
The advances made by L’Oréal in supply chain have been acclaimed once again by Gartner, which ranks the group in the European Top 5 for best supply chain(2). Its enhanced efficiency led to greater agility and adaptability in 2015 as the group served customers all over the world.
Improving efficiency
European top 5 for best supply chain(2)
Up 4 places Supply chain expertise for the global roll-out of URBAN DECAY
Operations plays a key role in integrating and rolling-out acquisitions within the L’Oréal group. The internationalisation of URBAN DECAY is an excellent example. To support the worldwide development of this American brand, the supply chain teams shared skills and information systems, particularly in the forecast field. Another important key to success: using L’Oréal’s networks – physical distribution networks, hubs and transport – to supply all the points of sale of URBAN DECAY, which have stepped up dramatically over the last three years.
60% of L’Oréal’s 2015 sales covered by the integrated sales forecast system
To improve the reactivity and precision of the orders all along the value chain, Operations launched an integrated information system in 2010. How does it work? Collaborative compilation of sales forecasts by the sales, marketing, supply chain and finance teams, which are then shared with the factories and distribution centres. This system is gradually being rolled out worldwide, and in 2015 was extended to Brazil and the countries of the Africa, Middle East Zone. This tool enables greater responsiveness and reliability in terms of products’ on-shelf availability for distributor customers, a better service level and more efficient stock management.
“Goods-to-person”: automated distribution centres
In 2015, Operations implemented a “goods-to-person” system in distribution centres in North America and Western Europe. With this automated process, products and boxes are delivered directly to the operator, greatly improving work station ergonomics. This reliable and flexible system has enhanced distribution centre performance levels. It is an integral part of logistics modernisation and underpins the ramp-up of the group’s e-commerce sales.