Loreal 2014 Annual Report Download - page 50

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OPERATIONS
THREE PILLARS OF PERFORMANCE
PRODUCT DEVELOPMENT AND SOURCING: Design-to-cost know-how, targeted
and efficient sourcing, and numerous packaging innovations together enable
Operations to meet each brand’s specific product development needs.
MANUFACTURING: To ensure flexible production at the best cost, L’Oréal has
chosen to have each factory specialise in a limited number of technologies. This
boosts the group’s technological expertise, increases productivity and improves
production costs.
DISTRIBUTION TO POINTS OF SALE: With a Supply Chain(2) that is integrated from
supplier to sales outlet and continuously upgraded through expertise and the
roll-out of new information systems, Operations continue to intensify their targeted
distributor-centric approach.
(1) Operations cover seven fields: Quality; Environment, Health & Safety; Packaging & Product Develop-
ment; Purchasing; Production; Supply Chain and Real Estate. (2) L’Oréal’s Supply Chain handles all infor-
mation and physical flows from the supplier to the customer’s points of sale.
450,000
DELIVERY POINTS
WORLDWIDE
43
FACTORIES
WORLDWIDE
Being
the best partner of
thebrands in every market
L’Oréal Operations(1) are at the heart of the group’s Universalisation strategy and corporate
social responsibility commitments. We contribute to the global roll-out of the brands and to
the group’s economic efficiency. Winning over the next billion consumers relies on our ability
to ramp up our presence in the New Markets, while continuing the development of our
worldwide structure in our three fields of responsibility: Product development and sourcing,
Manufacturing and Distribution to points of sale. Therefore, we need to adapt to varied
contexts and keep pace with the challenges of each of our brands in each of our markets.
We also support the group’s global expansion through innovation: this year, 94 patents were
filed for industrial processes and packaging, thus contributing to the success of our products.
BARBARA LAVERNOS
EXECUTIVE VICE-PRESIDENT OPERATIONS