L`oreal,a Company for Enhancing Beauty
L’orealis the world biggest cosmetic company with branches in several partsof the world. It traces its roots back in 1909 when Eugene Schuellerdeveloped an innovative hair dye and began selling it locally andlater abroad. The business grew gradually until it began making otherbeauty and cleaning products. L’oreal grew progressively until itemerged as the world’s leader in cosmetics (Funding Universe).Currently, the company deals with all ranges of beauty productsranging from skin care, hair color, perfumes, sun protection, makeups, and hair care. It is also concerned in advanced cosmetics suchas tissue engineering and dermatological field. L’oreal has beenable to maintain its position over time because of its innovativecapabilities supported by various research and development centers invarious parts of the world. The company that began as a hair colorbusiness, markets over 500 brands in all sectors of beauty products.
L’oreal’sresponsive supply chain is one of the major factors that place it ata competitive advantage over others. The logistics and manufacturingfunction collaborates with research and development to understand theneeds of customers and help in executing the strategies inanticipation to the needs of customers. L’oreal has a wide range ofconsumers with different tastes. The company recognizes this and hasset four main markets: consumer products to retailers and drugstores, beauty supplies to salons, luxury brands to boutiques anddepartmental stores, and dermatological products and activecosmetics. All these are aimed at reaching a wide range of consumers(Inbound Logistics).
Inthis information era, L’oreal has developed a global IT system toaid in supply chain management. The IT system ensures that the supplychain management, production management, and marketing operate in aunified way. The system applies procedures to optimize the quality ofproducts that virtually guarantee personnel and client satisfaction.Supply chain management is availed in real time throughout the entireorganization. Of essence, use of information technology helps inmanaging suppliers, production, and marketing accordingly. It is thecompanies that respond to information technology demands that willsurvive the dynamic and competitive business world.
L’orealis open to all suppliers with innovative products. It allows peopleto present their products and services so as to decide on the bestsupplier. It gives them a chance to present their innovative productsand propose new solutions and technology for the development ofinnovative services and products. Typically, L’oreal team partnerswith others to help in production of new products and services. Itdoes this by establishing an open dialogue to accelerate andstimulate innovation to benefit the end consumers (L’Orealsuppliers). Further, the company maintains a trustworthy relationshipwith the suppliers. It also plays a major role in socialresponsibility as a major dimension of the relationship between thecompany and the suppliers. When the company identifies its suppliers,it sets specific dates and time s for collecting the materials. This,with the help of information technology, eases the management of theentire operation.
Themanufacturing function of the company is also critical in the supplychain management. Innovations and updates are essential in improvingthe quality of products produced by the business (Cosmetics designEurope.com). The company tries as much as possible to improve thequality to meet the demands of the consumers. As such, it stays aheadin technology and use of innovative capabilities to satisfy thecustomers. This is has been made possible through research anddevelopment. L’oreal has several research and development centerswhose main focus is to progressively improve the quality of products.Innovation has always been recognized as a great aspect inmanufacturing of modern day products. The research and developmentefforts embrace all the possibilities of improving the products andinventing new ones as well (Wheatley, 2013).
L’orearis recognized brand due to its production of customer friendlyproducts and services. To maintain it’s brand new, however, is noteasy. The company has to keep pace with the marketing strategiesinherent in the world today. This marketing strategy begins with thepackaging of products. Usually, the company packs its products invery attractive packs, which contain information regarding theproduct including its benefits and ingredients. The marketingfunction targets various cosmetics wholesalers and sophisticatedretailer shops. Additionally, it has a group of well trainedmarketing executives and sales persons responsible for promotion ofthe business’s products. Because of its brand name, L’orealproducts are fast moving even though their shelf life is quite long.
However,despite L’Oreal being one of the most successful companies in theworld, it faces some threats in its entire supply chain. Latedecisions to respond to changes affect the company negatively in thisera of information technology. The business need to respond tochanges as soon as possible to maintain its global position.Additionally, there are some manufacturing issues and poor designsthat impacts on the entire supply chain. It is notable that cosmeticindustry is becoming a very competitive industry as more businessescome up with innovative products such as Procter & Gamble, Avon,and Oriflame. The competition is stiff and L’Oreal must work hardto keep up with competition.
Thecompany that started as simple hair color has grown to be the worldbiggest cosmetic company. Several people including chemists havecontinuously been involved in the success of the multinationalcorporation (L’Oreal Paris). Currently, the company offers almostall types of beauty solutions ranging from skin care, hair care,fragrances and perfumes, make up products among a wide range ofbeauty services and products. The researchers are progressivelymaking huge impacts in the company’s success in this volatilebusiness world. Amidst all the challenges, L’oreal has maintainedits position fully through the assistance of an effective supplychain management.
Cosmeticsdesign Europe.com. How L’Oreal Evaluates Suppliers to Stay ahead ofthe Game. Retrieved fromhttp://www.cosmeticsdesign-europe.com/Business-Financial/How-L-Orealevaluates-its suppliers-to-stay-ahead-of-the-game
FundingUniverse. L’Oreal history. Retrieved fromHttp://www.fundinguniverse.com/company-histories/l-or%C3%A9al-history/
InboundLogistics. Snapshot: Cosmetics and Skin Care. Retrieved fromhttp://www.inboundlogistics.com/cms/article/snapshot-cosmetics-and-skin-care/
L’OrealParis. Company background. Retrieved fromhttp://ckkcooly.blogspot.com/2010/06/company-background.html
L’Orealsuppliers. Promoting Collaborative Innovation. Retrieved fromhttp://www.loreal.com/profiles/suppliers/promoting-collaborative-innovation.aspx
Wheatley,B. (2013). Inside L’Oreal’s Plan to Implement Global SupplyChain Analytics.http://data-informed.com/inside-loreals-plans-to-implement-global-supply-chain-analytics/
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