L Oreal Supply Chain Analysis

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The supply chain of L’Oreal is the core feature which looks after the efficient running of the entire business production and processes. Supply chain is divided into two parts one is the efficiency and the other looks after quality control.
Supply chain is the core of the company sales since it is responsible to make the deliveries to the depot, distributer and ultimately the shops. To ensure the supply chain is well maintained L’Oreal management has weekly meetings and software to record our forecast, orders placed by distributors (primary sales) and ultimately the orders delivered to the distributor.
MSO is in direct contact with the brand team. He is responsible for required production and also informs organizations about lag or delays in
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Demand planning is carried out for a period of 5 years at L’Oreal
Promotional Value Selling is where L’Oreal managers sit together with the planning team and set targets to achieve in terms of sales and production after advertising and marketing campaigns
Base Line is the bottom line target of sales which can be achieved without any effort in marketing. This is what the brand will achieve in terms of sale at all costs
In this phase the team forecasts the demands with the supply in order to procure the material required for the manufacturing of the soap bars. The supply plan is derived from the demand plan.
Material Requirement Plan is the procurement plan in which vendors and suppliers are identified and the material is procured. The details of procurement are established and are further shared with the budget control
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3. Inventory management
L’Oreal company operation management focusing in this process because it have a huge level of inventory since L’Oreal plant produce different type of product that lead L’Oreal to have a good inventory system to manage this level . L’Oreal Company and its operation management use the just in time system.
The just-in-time it is a system that used by L’Oreal that enhance the employee and the operations to manage organization inventory and resource and the workflow and decision that support to have space in its warehouse. This system from the biggest companies has high level of inventory. And L’Oreal is one of these companies.
This system helps L’Oreal to evaluate inventory, sales, forecasting and production capacity level to identity the level of inventory we have and t know how much the next capacity will be and when we need to produce and what material we want and this what say just in time method the L’Oreal follow .the right time at the right

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