Operations: the linchpin of Group performance and innovation
With over 20,000 employees whose expertise spans packaging design, product development, purchasing, manufacturing, supply chain, quality, safety, environment and more, Operations ensure worldwide compliance with strict standards in quality, safety and social and environmental responsibility. Against a volatile geopolitical and economic backdrop, Operations have demonstrated their resilience and agility by rising to the Group’s challenges day after day, in order to meet consumer expectations and strengthen L’Oréal’s position as the global beauty leader for the long term.
Local moorings, global growth
Operations secure sourcing and a steady supply of raw materials, in particular by capitalising on the Group’s global reach through a network of 38 plants in 20 countries to ensure real proximity to its markets. They also rely on a network of suppliers, who are longterm partners. L’Oréal’s multipolar model is strategically centralised and operationally decentralised with a strong entrepreneurial mindset: the Group selects its suppliers at the regional level and supports them through their sustainable and technological transformations. Inhouse product design and manufacturing at the local level mean the Group can adapt in real time to the specific expectations of local markets and innovate to meet consumers’ needs. The dermatological beauty brand CeraVe illustrates the agility of this industrial model, which made it possible to ramp up production in the United States, Europe, Latin America and China in record time. The brand was totally unknown in Europe in 2017, but successfully increased production eightfold in France between 2019 and 2021.
Supply chain 4.0
The Group has also revamped its supply chain to meet consumer demand regardless of the path to purchase, whether instore or online, as ecommerce continues to grow strongly.
The Group’s new fulfilment centres are part of that drive, providing cuttingedge distribution centres with advanced technologies to boost responsiveness and increase the number of available services. They can handle ecommerce orders in record time and with remarkable precision using stateoftheart systems and robots. Following the opening of its mega distribution centre in Brazil, the Group laid the foundations for one of its first fulfilment centres in Suzhou, China, in 2022, and opened another at Cosmetic Park in Vennecy, France.
Crossfunctional IT solutions: the foundations of future supply chains
The remarkable acceleration in the flow of information from ecommerce requires constant optimisation and organisation. Every step of the way, the goal is to harness the power of data and artificial intelligence to boost the agility of processes and decisionmaking and better anticipate consumer needs – all while ensuring transparency and traceability across the value chain. Operations have rolled out a secure datasharing system to enhance both quality and efficiency. This transformation will continue to evolve as the industry changes and will enhance the overall responsiveness of Operations.
L’Oréal in Mexico