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L’Oréal's Supply Chain Ranked 9th Worldwide And 4th In Consumer Products Industry
For the 5th year in a row, L’Oréal is recognized by Gartner as a leading company in Supply Chain for its agility, digital transformation, and performance in sustainability
For the 5th year in a row, L’Oréal is recognized by Gartner as a leading company in Supply Chain for its agility, digital transformation and performance in sustainability. L’Oréal was awarded the 9th position in the Gartner Top 25 worldwide Supply Chain ranking, an industry standard, climbing 11 spots since 2016.
Every spring, Gartner, the leading research and advisory company for Supply Chains around the world, issues the Supply Chain Top 25: the preeminent ranking of supply chain leaders. Amongst the Supply Chains being ranked are Johnson & Johnson, Schneider Electric, Alibaba, Nike, and Adidas.* The evaluation of the 300 companies in the running is based on 3 major themes: Resilience & Agility, Data & Technology, and Sustainability. From its achievements to its vision and strategy for transformation, L’Oréal’s Supply Chain distinguished itself in each of these categories.
*Amazon, McDonald’s, Unilever, P&G, and Apple are not ranked in the pyramid as they are considered Supply Chain Masters by Gartner after having demonstrated sustained performance over time.
Resilience & Agility
“From COVID Resistant to COVID Resilient” was the statement coined by Johanna Bittan, Supply Chain Digital Transformation Director at L’Oréal, during the Gartner briefing presentation. In the heat of the COVID crisis, the Supply Chain teams demonstrated the utmost commitment and resilience to ensure business continuity.
Not only did all the distribution centers continue to fill orders despite the sanitary constraints, but innovative solutions around the use of data or the implementation of Dark Stores: physical stores turned into temporary distribution centers, accelerated the transformation four-fold.
“These solutions increased our ability to respond to the e-Commerce explosion and the market volatility following the crisis, proving the existing agility of our Supply Chain and exposing the key areas in which to accelerate,” she concluded.
“We are very proud of this renewed recognition that encourages us to go further and to continue accelerating our Supply Chain’s transformation. The achievements that were presented and the transformation strategy are all made possible thanks to the strong commitment and incredible drive of our teams.”
Francisco Garcia Fornaro, Chief Supply Chain Officer at L’Oréal
Data & Technology
L’Oréal is the World’s beauty leader, with the ambition to become the #1 Beauty Tech player. As a global company, L’Oréal is fully aware of the value and potential of the data it produces and uses, both internally and externally. From the worldwide implementation of Elixpedia and Cosmo, the Group’s official shared master data management tools to the Global Freight Cockpit, a control tower fed by transportation data gathered from suppliers, L’Oréal’s Supply Chain is surpassing the market average when it comes to data and has clearly grasped that gathering qualitative data is the pre-requisite to the end-to-end digitization ambition of the value chain.
Demand Sensing, for example, is reinventing sales forecasts for the digital era through data and artificial intelligence. The algorithms of our Beauty Tech Data Platform use all relevant data from inside and outside the Group to enable more reliable, accurate sales forecasts.
In addition to data, automation is a key strategy within the Group’s go-to-market transformation program. This program, a clear differentiating factor for Gartner, was designed to create automated, data-driven distribution centers that offer a wide range of services with high added value, such as product personalization, the preparation of gift boxes and packages, and delivery tailored to the needs of customers and consumers worldwide.
The initiative includes advance planning of incoming orders, tracking systems, and the use of autonomous vehicles to transport products to order pickers.
Sustainability
2020 was a pivotal year for sustainability as Supply Chain at L’Oréal not only announced the achievement of major objectives such as the reduction of CO2 emissions linked to transportation, but it also marked the clear positioning of Supply Chain as a major contributor to the Group’s environmental and social aims within the L’Oréal for the Future program.
From the development of low-carbon solutions for transport, to the reduction of carbon emissions through improved energy efficiency and distribution centers that run on 100% renewable energy, or even the elimination of single-use plastic in our distribution centers regarding parcels, the Supply Chain teams are fully committed to sustainability and have fully integrated it into the way they work.
With the acceleration of the Supply Chain transformation, L’Oréal Supply Chain’s teams will continue to strive for overperformance and most importantly to continue delivering beauty to the world.