3.4 Supply Chain Management
One retailer wants everything to be tamper-labeled. Another requires small counter displays. A third requests the development and assembly of 100,000 pieces into eight-piece kits. Through it all, the focus has to be on the core consumers—educated, youthful-spirited young women.
These are the challenges facing Stila Cosmetics, a relatively small but growing company in Glendale, CA. If that weren’t enough, Stila has the daily challenges of achieving the right mix of product formulas in fashion-forward, eco-friendly packaging.
Hereinafter, Stila Cosmetics accomplishes all of these objectives and has forged a close personal bond with its consumers by using guerilla-marketing tactics in which packaging plays a vital role. Its packaging supply chain, which includes a host of contract manufacturers, fillers, packagers, and assemblers, in the U.S. and around the world, plays a huge role in the company’s success.
Thereunto, an important factor in Stila’s approach to its supply chain is the focus on developing strategic relationships with vendors, in which departments inside the company plan carefully to optimize production efficiencies and produce cost savings and manufacturing process stability over time, so long-term relationships are preferred. Price is just one measurement when Stila qualifies contract packagers, for example, as opposed to a more tactical use of vendors, in which a brand owner increases capacity and capability as needed and bases
Ulta Beauty is not the top cosmetics and fragrance company and has serious competitors like Sephora, Lush life and Regis Corporation, but at the same time Ulta Beauty uses that to their advantage by focusing on a specific target market. Unlike cosmetic companies like Sephora and MAC, they offer the best product on the market but because they are the best they are more expensive than most makeup companies. This gives Ulta the target market towards women who want better than drugstore makeup, but also don’t want to spend an obscene amount of money on cosmetics. In the future, Ulta Beauty must continue applying their company to this demographic and focus on this specific target market, while offering deals and discounts for loyalty to their customer. This will allow them to have a built in client base for the company.
I grab the midnight blue, Marshall’s branded cart by the entrance. After fifteen minutes of rummaging through dozens of clearance racks and inspecting clearance furniture, my mom and I go to the checkout line. Twenty feet away, a white, metal basket holds a pile of leather wallets by other stands full of cheap, packaged candy, knockoff jewelry, and otherwise useless penny grabs. We walk towards the stand and rummage through the lot, holding them up in the air and looking for the other’s approval. Not too long after, I find a $20 Tommy Hilfiger wallet.
Ulta Beauty, Incorporated was founded in 1990 as a beauty retailer by Richard George, a former Osco drug Inc. president. In 1990, it was difficult for a consumer to purchase beauty products without shopping at various retail locations. Comparatively, Ulta Beauty offered a concept of All Things Beauty, All in One Place™. It is currently the largest retailer in the United States offering 200,000 products from 500 beauty brands through brick and mortar stores and e-commerce. The company offers fragrances, hair care products, skin care products, full service salons, and cosmetics.
Introduction Sephora was first founded in Paris 1969 by Dominique Mandonnaud who made a daring change to the way perfume and cosmetics were sold, letting the consumers try before purchasing. Instead of having sales representatives at the counter, Sephora had beauty advisors stationed at the counters to offer advice and ideas to each individual. Over the years Sephora has grown mightily, boasting over 2000 stores worldwide and employing an estimated number of 25,000 employees. To uphold the top spot in the market, Sephora has constantly rolled out new products into their stores with outstanding innovations, making it hard for their competitors to follow.
Sally Beauty Holdings, Inc. (SBH) is one of the largest international beauty supply retailer and distributors in the United States. Sally Beauty Holdings ranks as #643 on the list of Fortune 1000 Companies. According to Sally Beauty Holdings 2013 Annual Report, the company has $3.6 billion in revenue and $261 billion in net earnings. The company operates under two segments, Sally Beauty Supply and Beauty Systems Group.
The adoption of new technologies and trends is being facilitated in the industry for the competition and the customer’s overall experience. Many suppliers that are having similar strategies face a strong competition. The barriers for exiting the markets are high. Products and services of are undifferentiated leading the customer to focus on the prices offered. Low market growth, so it can be increased only by taking another firm’s market share.
Dick’s continues to invest in its brand, and utilized the recent Winter Olympics in an attempt to reach potential customers. It has used its Scorecard database to leverage digital channels to personalize offerings. There are also further opportunities to reevaluate the poor launch of its Second Skin brand, and address its shortcomings. There remain opportunities for Dick’s to capture displaced market share offered by competitor bankruptcy and market consolidation.
This paper presents an overview of Kmart retail supply chain in New Zealand. Various IT systems and software used by Kmart are presented in this paper. The new IT systems and business applications are also proposed. In retail sector, IT is involved at every point right from supply chain management to POS terminals for transaction processing. Efficient use of technology and IT systems can bring innovation.
Kermit’s key lime shop posses an important challenge in terms of their current shipping method and packaging, when asked by a loyal customer to find other methods of packaging that are more environmentally friendly than their current method. As Kermit wants to satisfy their consumers and do not seize away from a challenge, they are looking for the best alternative in order to please their customers. The client did not specify a price ceiling for the project, however Kermit’s Key Lime Pie are looking for a solution they could integrate to the entire company’s packaging and shipping methods.
The Value Chain 4 4. Operations Strategy Implications (Store level) 5 5. Inventory Management and Demand Forecasting 9 6. Supply Chain Management 9 7. Quality Management 11 8.
While its professional segment products are delivered to wholesale beauty supply distributors, most of its goods under customer segment are distributed to large volume retailers and chain drug stores, such as Walmart, Watson & Co and DrugMart. By strengthening its distribution systems, Revlon has improved its operating efficiency in certain extent. Digital marketing including Social media, television or outdoor and print advertising are some of the tools being used by Revlon currently. Besides, to boost sales, displays and samples, coupons serve as trial incentives for point-of-sale merchandising. By cooperating sales activities and advertising campaigns, Revlon highlights a united image for its portfolio of core brands around the globe.
By this the company emphasizes on the fact that an excellent collaboration with its supply chain partners is vital in order to perform the CSR strategy in its global network. (Tesco and society review , 2014) The important role supply network has on the Tesco CSR strategy is manifested in the essential of trading responsibility. Tesco proclaims about its relationship with suppliers: ‘’Building strong partnerships with trusted suppliers will ensure that we deliver high-quality and safe products that are responsibly produced’’. (Tesco , 2013)
Executive summary This report depicts the various stages of IKEA’s supply chain flow, providing an elaboration of processes that take place at each stage. It also shows the dependency of the stages and how information flows through the supply chain. After illustrating the supply chain flow process of IKEA, the report then moves on to analyze the company’s global supply chain strategies.
AC 2.1 – Evaluate the effectiveness of strategies used by IKEA to maintain supplier relationships and evaluate the effectiveness of these strategies. Proficient administration of suppliers is the vital path for assembling organizations can propel their execution. There are numerous huge parts of supplier administration; they join sourcing methodologies, and the way connections are overseen and the data trade arrangements embraced by IKEA. Taking into account the way that when in doubt, top of the line items are fabricated by various diverse suppliers. IKEA had 1,400 worldwide suppliers, 60% its suppliers are from European nations.
The regulatory framework, efficacy, safety, compliance requirement and marketing of cosmetic products are considered as the most important factors for growth of cosmetic industry. There are different regulatory bodies globally having their own regulations to make sure about the safety of the cosmetic products. The regulations of cosmetics like, nomenclature, labelling and safety of colorants(s) alter in different countries. Much Stringent legislation exists in the United States of America (USA) and European Union (EU) to regulate their use for cosmetic products. Differences in regulations affect safety assessments of cosmetic products.