LOreal was founded as a hair-color company in Paris in 1919. Nowadays, it has become a leader among the world cosmetics companies that comprise a great number of famous brands such as Garnier, Vichy, Maybelline and others. Like all the companies operating on a global level, LOreal has found the ...
LOreal was founded as a hair-color company in Paris in 1919. Nowadays, it has become a leader among the world cosmetics companies that comprise a great number of famous brands such as Garnier, Vichy, Maybelline and others. Like all the companies operating on a global level, LOreal has found the right product in the right place and now works on maintaining their brand promise. With regard to a great number of factories presented in 130 countries, their success is predetermined by implementation of the operation management solutions. At the same time, the position of the company is supported by the fact that LOreal has become a leading global IT user. Such a position makes it user- and technology-friendly. In general, the specific core model that includes SAP and FlexNet implementation in an integrated manner allows LOral to use the best practices in supply chain management, quality management and production management.
The effective flow of services and goods through and into the organization is usually coordinated by supply management teams. The main challenges that they meet are the following: creation of the world-class supply base, cost reduction, purchasing competitively priced goods, accelerating time to market and improving cycle times . Liberals' challenges are not different. Therefore, it implements the supply chain through such elements as sourcing, supply-chain relationship, product development, order fulfillment, manufacturing, distribution, customer engagement, reverse logistics and Web-enabled platforms .
Among such, the SAP and FlexNet deserve special attention.
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Among such, the SAP and FlexNet deserve special attention. The industrial logistic operations at LOreal are created and automated with the help of the comprehensive management solution, namely enterprise resource planning system. Although the best practices belong to business owners, who make the final decision about implementation of the required changes, the personnel is responsible for the implementation of the new processes in the separate areas .
Such a management program is extremely successful. The cross-functional team that comprises both operations and IS personnel is important as it brings competence in system design, management, implementation and solution. The sites that function on the basis of such systems optimize the quality and traceability of products. Moreover, they guarantee the clients and personnel security. Aprisos FlexNet management solution gives a flexible platform based on the core model approach. It provides the real-time warehouse logistics, quality management functionality and production required by LOreal.
It is important to emphasize the principles of the company that are applied to the customers, products, society, environment and everything that is connected to the company. The belief is that beauty and expression of individuality are the main aspirations. According to the words of the companys CIO for operations, LOreal put efforts to stay the part of the well-being of the planet by implementation of such strategies as ensuring safety to people and environment, giving guarantees of the perfect quality, shorter time-to-market and excellent service level, staying innovative, minimizing costs and investments (ARC Advisory Group 2010). At the same time, all of these operations and strategies are implemented in a homogenous manner. In such a way, the success of a company is supported by a modern and integral IT infrastructure, real-time traceability and visibility of the operations, flawless production and quality compliance with ISO 14001. At the same time, the warehouse management function is available on the local sites 24x7.
For each business process, a business owner defines the requirements, while the regional business owners put efforts to support them. Additionally, the interaction between the global projects contributes greatly to the core model of the LOreal supply chain management.
To sum up, the finances, HR, supply and demand planning in LOreal is an effective system that supports all functions of ERP. Apriso FlexNet is an exceptionally significant component in the chain as it manages a great number of functionalities and provides the company with the best practices of IT technologies on the local and global levels. Finally, the core approach, integrity of the factories, focus on quality and support of the brand are the most important components of the LOreal supply chain management.
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