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Kirthana S(10-06-05)
Om Prakash Kabdwal (10-06-07)
Swati Singh (10-06-11)
LOreal started doing business in India in the year 1991 through a
domestic distributor where it launched its first product, a shampoo
called Garnier Ultra Doux.
L'Oreals compound annual growth rate in last decade has been about
30%.
Today it is the second largest global cosmetics group in India.
LOreal reaches out to 2,300 towns and covers seven lakh outlets
Globally L'Oreal backs itself with the twelfth-largest media budget in
the world. In India, it is the fifth largest media spender in the
industry.
Consumer products Professional products
LOreal Paris LOreal professional
Maybelline Kerastase
Garnier Matrix
Luxury products
Lancome Active cosmetics
Ralph lauren Vichy
Biotherm La roche posay
Giorgo Armani Body shop
Diesel
Managing inbound logistics is significantly more complex and challenging than outbound
logistics
Outbound shipping originates from a handful of production facilities and/or DCs and makes
numerous, regularly scheduled stops to deliver product
Compare this to timing the inbound delivery of hundreds to thousands of different raw
materials, originating from dozens to hundreds of suppliers located at far-flung global
locations, especially with regard to beauty supplies manufacturing
This is because, beauty industry is known for using some pretty exotic raw materials sourced
from unlikely locales. Awapuhi from Hawaiian mountainsides, Jojoba from Sonoran deserts,
and other botanicals, fragrances, emollients, emulsifiers and pigments from all over the globe
are routinely used in producing modern cosmetics.
Getting all these materials delivered in enough time to meet purchase orders is difficult
enough before factoring in the limitations dictated by shifting fashion trends.
When a lake is filled to the brim it looks pristine, calm even. But when the
water level drops, rocks and other hidden anomalies begin to surface.
The world's most recognizable cosmetics brand was challenged with holding vendors
compliant to inbound transportation requirements. After much due diligence, L'Oreal
USA chose Elmwood Park, N.J.-based UltraShipTMS' flagship solution,
UltraShipTMS, to help automate its routing guide and attain greater visibility.
"This approach was critical to improving the flow of components and raw materials into
our manufacturing facilities," explains Folkes. "By controlling this part of the supply
chain, we could dictate transportation and inventory management, expand visibility, and
plan ahead more accurately."
Using UltraShipTMS, L'Oreal triggered a transformation that comprised three phases:
Compliance: "We needed to convey appropriate transportation instructions to our
suppliers," says Folkes. "The cost savings from simply holding vendors and
suppliers more accountable have been significant."
Mode selection: "Shipments weighing 20,000 pounds should move truckload, not
LTL," Folkes says. "The system, not the supplier, now dictates mode."
Optimization: "We have now given our manufacturers the tools to go back to
suppliers and figure out how to ship to us more efficiently. We cleansed the supply
chain by delivering more accurate lead times. This allows our suppliers to pool
shipments, and we have freight ready to build full truckloads," Folkes explains.
In the personal care product supply chain, demand sense and respond is
a competitive differentiator. Controlling inbound transportation and
product flow at each pivot in the supply chainfrom manufacturing
plants to distribution facilities to retail storeshelps businesses pull
inventory to demand.
Capturing demand signals from the point of sale, then sharing this
information with marketing, logistics, and service providers upstream in
the supply chain, enhances visibility, grows collaboration, and increases
flexibility and economy.
PRODUCING SUSTAINABLY
Hair Salons : The second sales channel encompasses hair and beauty salons and the
like. These not only use L'Oral products themselves, but also sell them to their
clientele.
Retail : But by far the largest channel is retail: the supermarkets, department stores
and chemists where most of the public buy their cosmetic and beauty products. This
channel of distribution accounts for more than half of total turnover (1998: 55.9 per
cent), and the Consumer Division which supplies it is therefore the largest within
L'Oral.
The Consumer Products Division offers the best in cosmetics innovation to the greatest
number of people on every continent. Its brands are available in mass-market channels
(hypermarkets, supermarkets, drugstores and traditional stores).
LOreal Luxe offer high-quality products through a selective distribution channel, and
provide excellent service that respects the diversity of its consumers.
The Active Cosmetics Division's mission is to help everyone improve the quality and
health of their skin, in all health care channels worldwide: pharmacies, beauty and
health retailers, drugstores and medi-spas.
The Body Shop true to its pioneering spirit, combines innovation, sensory experience
and performance. Its products are distributed mainly through a network of exclusive
boutiques.
Today LOral India is present in all distribution channels with 15 brands
LOral India employs over 1,600 people across four regional offices
The ramp-up of e-commerce, the personalization of products, and the management
of products data and different delivery modes.
Thank you