A mini factory can make foundation at point of sale © Lancôme
A mini factory can make foundation at point of sale © Lancôme

L'Oréal uses digital supply chains to meet consumer demands

Will Green is news editor of Supply Management
26 September 2018

Agile supply chains are key to meeting the needs of today’s consumers, according to L’Oréal’s digital boss.

Stéphane Lannuzel, operations chief digital officer at L’Oréal, said consumers wanted “triple A” – any product, anywhere at any time.

Speaking at the Gartner Supply Chain Executive Conference in London, he said: “To meet today’s beauty consumers’ expectations you have to bring supply chain operations to the next level of agility.

“The consumer has changed more in three to five years than in the last 30 years.

“They want experience; they want specific products. Consumers are really in control. They tend to be quite unpredictable.”

Lannuzel said in China 50% of its consumer products were sold online. “You need to make sure you build the agility to meet these demands,” he said.

He said the company worked with 70,000 suppliers and it had 41 manufacturing plants. L’Oréal has 7bn products and 500,000 delivery points.

Lannuzel said L’Oréal began a digital transformation two years ago. He said this was not a “single improvement” but a “radical change”. “Personalised products change flows within and between factories,” he said.

Lannuzel said makeup foundation was made at “mini factories” at point of sale while L’Oréal was going to “soon 3D-print products that we will put on the market”.

Lannuzel said factories were closed for a “digital day”, when technology was showcased to employees to demonstrate what it could do for consumers and how it could be used in the workplace.

“People are key to digital transformation. Digital is there to make our lives easier,” he said.

“Give freedom to the people. Technology gives people on the shop floor freedom to innovate.”

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