L’Oréal: A Case Study in Supply Chain Excellence

  François-Régis Le Tourneau leads the efforts at L’Oreal for Standards & Prospective Process Improvement.  At the Supply Chain Global Summit 2018 , Francois discussed the impact of digitalization, Industry 4.0, and L’Oréal’s approach to business that has allowed the company to continuously rank as a Supply Chains to Admire winner  for four consecutive years. The award, based on beating the industry peer group on rate of improvement on the key metrics of growth, operating margin, inventory turns, and Return on Invested Capital (ROIC) while outperforming their peer group, is tough to achieve. We complete the analysis each year. In Figure 1, we detail the methodology calculation. (Read more to understand the details on the Supply Chain Index ,) Figure 1. Supply Chains to Admire Methodology A Multi-Year Unbeatable Champion Based in Paris, L’Oréal is a global personal care manufacturing company. It is the world’s largest cosmetics company with annual sales...
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Five Reasons Why Are We Not Making Progress on Inventory Management

90, then 80, followed by 76. The highway rolls ahead of me. There are endless mile markers. It is a long day. Today, I am cruising major freeways traveling from Chicago to my new home in Pennsylvania. Against my friends’ advice, I decided to drive to speak to 120 business leaders at the Gains Systems event. The rain delays through the summer soured me on air travel. The sun is shining. The fall harvest—on either side of the road—bountiful. As I press the pedal to the floor at 80 miles-per-hour, I munch Cheetos puffs (one of my favorites) and think about the session I just finished. The cheese on the puffs stains my hands like I feel that mis-guided past practices have indelibly colored supply chain practices. At the session, we discussed why companies have not made more progress on inventory management. (The presentation is on slideshare .) Note in...
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How Inbound Logistics Networks Can Be a New Source of Savings

By Geraldine Felicio and Deepika Sharma · October 2, 2018 Editor’s Note: Every year, 40 or so students in the MIT Center for Transportation & Logistics’ (MIT CTL) Master of Supply Chain Management (SCM) program complete one-year thesis research projects. The students are early-career business professionals from multiple countries with 2 to 10 years of experience in the industry.  Most of the research projects are chosen, sponsored by, and carried out in collaboration with multinational corporations. Joint teams that include MIT SCM students and MIT CTL faculty work on the real-world problems.  In this series, we summarize a selection of the latest SCM research.  In an age where customers are expecting faster deliveries and increased flexibility, consumer packaged goods (CPG) companies are constantly looking to evolve their supply chains. This requires companies to examine their end-to-end supply chains to find opportunities to optimize both cost and visibility. Oftentimes, companies focus...
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And then there was one!

By Bob Trebilcock · October 1, 2018 I’ll be honest: Prior to watching the semi-final and final rounds of the student case competition at APICS 2018 in Chicago, I’d never heard of Bradley University, a private university in Peoria, Illinois with about 5,400 students. The school’s tagline is: Mid-sized. Big difference. The Big Difference was on display as Bradley’s team of four supply chain students was awarded the case competition prize for excellence in supply chain management strategy on Monday at the APICS conference. The annual competition, done this year in collaboration with Deloitte, celebrates real-world problem solving and technical knowledge within supply chain management. The first runner up was a team from Georgia Tech while the second runner up was from Harvey Mudd College. The winners will divide $5,000 in prize money and their schools will divide $2,500. In addition, APICS funded travel to the conference for the 7...
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Meet the Association for Supply Chain Management

By SCMR Staff · September 30, 2018 Today marks the introductory launch of the Association for Supply Chain Management (ASCM), the new global leader in supply chain organizational transformation, innovation and leadership. ASCM is an all-encompassing supply chain organization that will propel the supply chain industry forward and transform how organizations do business. “ASCM is the leader for end-to-end supply chain management, bringing corporations and professionals the latest ideas and proven best practices to help transform supply chains. We want to empower both the people who elevate supply chains and the companies who utilize them,” said APICS CEO Abe Eshkenazi, CSCP, CPA, CAE. Supply chain has become a significant and driving force in the success of businesses around the world. As a new organization, ASCM will enable corporations to more effectively tap into their supply chains and deliver strategic value. “With ASCM, we recognized an exciting opportunity with this new...
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APICS rebrands as the Association for Supply Chain Management

ASCM is the new, all-encompassing supply chain organization built on the foundation of APICS Original link