The Growth of e-Commerce and the expectations of users who are ever more concerned about service options, sustainability, personalization and traceability: these are just some of the challenges that are facing.
Supporting the Global Growth, across the five continents, is a further key challenge. All of these challenges need to be dealt with by the Loreal Supply Chain. To serve both the Group and their users, they have initiate a transformation process that will take them into the era of outstanding performance.
What is the role of Supply Chain at L’Oréal
The Supply Chain includes of all the steps that permit them to deliver their products and services. They are the important link between their plants and their consumers. Every year, L’Oréal group disseminates more than 6 Billion products. It indicates that they are dispatching two orders every seconds, all over the world, to 8 evident types of distribution channels like hair, and beauty salons, mass market, e-commerce, user expectations.
People’s Expectations can Change instantly. What are the current user’s trend?
The Habit of Consumer are changing all the time, and for them that is both a challenge and an incredible motivation source. L’Oréal are selling everywhere, all the time, in shops and online with e-Commerce. In fact, the share of E-Commerce sales is increasing constantly. And the recent health crisis has only accelerated that trend. Also consumers have new expectations.
Let’s see for an example, when it comes to online sales, people expect a perfect delivery service, with shorter delivery time gradually, packaging quality as good as if they bought it in store, and all this respecting the environment.
In response to this paradigm shift, they are accelerating the transformation, and moving into an era of outstanding performance. L’Oréal’s aim is to create the Supply Chain of Tomorrow, one that really makes a difference in the eyes of consumers and that supports the rise of L’Oréal.
How Does this Transformation fit with L’Oréal for the Future commitments - Their Sustainable Goals for 2030?
Being at the core of Group’s Interactions with its various stakeholders, the Supply Chain has a crucial role to play in their sustainable transformation and commitments to people and nature. One of the key ambitions of L’Oréal for Future program is by 2030, to eradicate by 50% on average and per completed product, the greenhouse gas emissions connected to the transport of their products, compared to the year 2016.
What role does Agility play in this Evolution?
This Agility is the first and foremost pillar of the Supply Chain Strategy, and in practical terms it indicates capability to respond in real-time to expectations of the market. The Sales and Operations planning strategy permit them to predict market fluctuations and to enhance their industrial agility accordingly. So that, they can offer an optimal service to their users. This includes, for example, the growing usage of data or the creation of Demand Sensing Anticipated Planning that permit Agility to forecast sales thanks to the power of Artificial Intelligence and Data.
Summing Up
The Revolution of Supply Chain is more than a strategic challenge. It is a opportunity for all of them to perceive something unique. They have an opportunity to rethink the way they work to meet the requirements of users and adapt to the changes in society.
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