FEATURE: Inside L’Oreal’s Middle East supply chain

FEATURE: Inside L’Oreal’s Middle East supply chain
L’Oréal Middle East has a complex distribution system, delivering to big outlets such as Carrefour and Lulu, small boutiques, as well as salons and pharmacies. In Dubai alone, L’Oreal has 4,000 customers and a thousand points of delivery.
Published: 5 September 2017 - 2:56 a.m.
By: ASC Staff

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Present in 130 countries on five continents with a portfolio of 32 brands, L’Oréal plans to gain a billion new consumers by 2020, while simultaneously reducing its global carbon footprint by 60%.

The company plans to do this by adopting sustainability measures across all its business processes: at plants, distribution centres, and its entire value chain, covering production, transportation and packaging. It will do this in each region in which it operates, with the project overseen by the regional head office. The company’s activities in Dubai and the GCC region are managed by L’Oréal Middle East, based in Dubai.

This type of organisation structure is perhaps one of L’Oréal's major strengths. It makes it easier to respond to consumers’ expectations by understanding habits, lifestyle and adapting to local distribution channels.

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“Because L’Oréal operates in several countries with different business models, its supply chain process is a bit complex,” says Yassine Bakkari, operations director at L’Oréal Middle East. “Most of our raw material sourcing is centralised because our products have almost the same ingredients. For example, surfactant, which is used for producing both soaps and shampoos, is sourced from famous suppliers in Europe. Likewise, we have suppliers in Asia as well as the US. We always ensure that our raw materials are of the highest quality.”

As part of its sustainability efforts, L’Oréal has launched a programme, named ‘Sharing beauty with all’, that sets out targets for the business until 2020 and provides a list of best practices that regional divisions follow and innovate upon.

By the end of 2016, L’Oréal had managed to reduce its carbon emissions by 67% and increased production by 29% over a 10-year period. Which supersedes its ambition of reducing its environmental footprint by 60% by 2020. The company currently boasts 15 carbon neutral sites, which include factories as well as distribution centres.

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