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Cosmetics And Skin Care January 01, By Joseph O'Reilly No tags available Cosmetics and skin care manufacturers look in the corporate mirror and smooth logistics and supply chain wrinkles. Consumer appeal ultimately lies in the eye of the beholder.
But when discretionary shoppers can't find L'Oreal's Colour Riche lipstick in Brazil Nut, or Vive Pro daily thickening shampoo for men, all eyes focus on the supply chain. Beauty-care consumers have specific wants, and manufacturers and retailers are obliged to ensure the desired products are on the shelf.
Brand recognition turns heads, but efficient supply chain management seals the deal. For Burt's Bees, a niche, all-natural skin care products producer, the company's ethos and product appeal depend on equal acceptance from the consumer.
Achieving this goal requires publicizing the merits of sustainable sourcing, educating consumers on the value of all-natural ingredients, and having inventory in place to lure shoppers into buying.
For both L'Oreal and Burt's Bees, and the health and beauty care industry at large, marketing and logistics play an uneasy game of give and take. Shelf presence and off-the-shelf transportation management solutions are hot commodities. Manufacturers and retailers together rely on demand sensitivity to keep pace with the latest sensitive skin care lotion to hit the market.
But unique unit packaging collides with uniform loads; and capturing both the consumer's eye and point-of-sale signals compete for undivided attention.
Inside the carton, out on the truck, or above in the corporate ether of sustainable stewardship, these demand- and supply-side functions have a stake—each with its own pull.
Much like the consumers who buy into their sell, personal care product manufacturers are taking a reflexive look in the mirror—then applying logistics and supply chain management salves to manage the fickle tendencies of American beauty.
Beyond Cosmetic Concerns Integrating Marketing and Supply Chain One unique aspect of the health and beauty products industry is the synergy that exists between supply chain and marketing.
Who knows the consumer better: Friction between marketing and physical flow can present a challenge. On one side, shelf presence and packaging are at a premium, encouraging individuality and different product shapes and sizes.
On the supply side, carton, pallet, and cube standardization is a priority. Properly communicating marketing and sales efforts to back-end logistics functions, and vice versa, is important. Real-time data and key performance indicators need to flow from point of sale so that production and logistics can ramp up or scale down inventory according to demand.
Marketing and sales can similarly leverage inventory information to discount and liquidate under-performing SKUs and reduce carrying costs for obsolete product. No matter how you dress forecasting, it's still a guessing game.
Measuring consumer behavior helps predict demand, but product placement and availability also engage the customer's senses and trigger spot consumption.
Maintaining open avenues of communication between internal departments helps increase flexibility and responsiveness. Managing Multi-Channel Fulfillment Health and beauty care products are sold into a variety of different retail streams, each with its own wrinkles.
L'Oreal, for example, targets four markets: Burt's Bees sells to mass merchandisers and department stores, smaller specialty stores, and to consumers directly via the Web.
Success is contingent on understanding the end customer's tastes, as well as working within the retail customer's boundaries. Chain drug stores with a specific shelf presence may fold a manufacturer's brand into their own store line.
For example, Burt's Bees' new oral care product is displayed with toothpaste and other like products. But in a specialty store, its product line may be featured in its distinctive "hive" display cases.
Conversely, selling to online customers demands entirely different marketing tools and packaging requirements. These variables translate to transportation as well.
Big box wholesalers often want regular LTL and truckload deliveries, while boutiques, salons, and direct-to-home buyers may order in smaller batches or rely on parcel and expedited shipments.
Depending on the size and scope of business, manufacturers can operate separate supply chains for each business unit or source from a centralized pipeline.
Finding synergies among disparate channels can help consolidate inventory, rationalize transportation, and reduce costs. Less Packaging, More Gain Packaging essentially serves two purposes: The challenge for health and beauty care companies is minimizing packaging, wraps, and labels without diluting the individuality or marketing appeal of a specific unit.
Efforts to revolutionize packaging with innovative, earth-friendly materials have become commonplace. For Burt's Bees, selling sustainable packaging is as much a part of its corporate culture as peddling its many SKUs of all-natural skin care goods.
Personal care product manufacturers have become familiar with using post-consumer and post-industrial recyclable materials, reducing wraps and excess packaging to shrink their material footprint.
Burt's Bees and L'Oreal are both engineering packaging solutions that are biodegradable, specifying materials with after-life reconciliation and recycling in mind.
Beyond consumer demand for more eco-friendly packaging and the marketability this carries, reducing product footprint practically eliminates cost.
Lighter weights and smaller sizes translate to better cube utilization and transportation economy. Taking Stock of SKU Proliferation Product diversity is a necessary evil because consumers like having choices when they open their medicine cabinets.Companies can use the analysis to manage suppliers, reduce costs, and mitigate the risks posed by potential regulatory changes, supply scarcity, and volatile commodity prices—and to help initiate conversations with suppliers that could result in strategic relationships that enhance the capabilities of .
With level 2 and 3 suppliers and vendors, it may be the purchasing or procurement officer who approves the supplier or vendor list and monitors performance.
'I always made sure that the user group. Management solutions tend to be better than expanding supply because they support more accessibility and user information. Comprehensive analysis. All significant costs and benefits should be considered in parking planning. Parking Management: Strategies, Evaluation and Planning plus examples and resources for more information.
And your current suppliers don’t wake up in the morning wondering whether you’ve instituting a new policy that will change By enforcing use of approved templates through an eRFX solution, you can make sure that all bidders are receiving the most current, accurate information.
We do this by automating your supply chain (SCM), increasing visibility into information and providing business intelligence tools to help you make smarter, better and faster decisions that impact your bottom line. Start studying Supply Chain Management (Chapter 10).
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