L’Oreal Information System Re-Engineering

Posted: October 17th, 2013

L’Oreal Information System Re-Engineering

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1. Reasons Why L’Oreal Needed To Re-Engineer Its Information Systems

Being the employer for 67,000 people in 130 countries globally, the world’s largest cosmetics, and beauty company, the L’Oreal Group of companies by 2007 realized it had to upgrade its information systems to achieve some goals. The system needed to possess the capabilities to achieve faster global product uniformity from a central point without lengthy branch consolidation as previously witnessed. There was also a need to standardize the best-practice business processes throughout the company.

The company also needed to improve consistence in the productivity, safety and quality of the different goods it produced in its plants globally. System re-engineering would also achieve general company information system upgrade without disrupting factory operations. There was also a need to hasten the coordination of manufacturing operations within a plant in its many plants globally and across its supply chains. This was to increase productivity and enhance speed and timeliness.

2. Benefits of L’Oreal’s new information system

The new system has enabled the company to bring its factories online faster than the previous system did, thus improving its production capacity as a part of its strategic goals. This also helps the company achieve faster workflow unlike in the former system where workflow was relatively slower.

The new software also guides actual manufacturing automatically therefore improving quality control besides realizing production consistence as part of the firm’s strategic goals. In addition, production using the re-engineered information system has reduced wastes that were realized before due to human error. Information on shelf life offered by the new system also encourages buyers to acquire the company’s goods therefore increasing overall sales.