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Our customer COTY Inc. was founded by perfumer François Coty in Paris in 1904, and has established itself as a global fragrance and cosmetic corporation. Nowadays, COTY represents more than 47 brands in over 40 countries, making it one of the world’s biggest perfume manufacturers. The product portfolio ranges from ultra- prestige up to entertainment. COTY’s portfolio includes some of the most desirable beauty brands across four major divisions: fragrance, decorative cosmetics, skin care and body care: adidas Calvin Klein Chloé Davidoff Marc Jacobs OPI philosophy Playboy Rimmel Sally Hansen Behind the scenes of a cosmetic giant – The beauty of perfect logistic processes For a company´s success in the dynamic and demanding world of the beauty and cosmetics industry, perfecting logistics is highly important. The international beauty corporation COTY Inc. has announced its plans for further expansion in one of the most competitive industries with its increasing complexity for domestic and global distribution. »Arvato understands the needs of the cosmetic industry. For our 2015 certificate, we have once again selected the Arvato warehouse in Düren from more than 40 sites as being the 'COTY Benchmark Warehouse'.« Fredrik Händel Distribution and Warehouse Director, COTY Services and Logistics GmbH The starting point For the COTY Prestige sector, the company has searched worldwide for a supplier in order to consolidate multiple warehouses into a central location. Handling direct deliveries to European countries, as well as to additional regional warehouses. Therefore, the cosmetic corporation created branch-specific requirements such as extensive safety standards. From a customer’s perspective, it was highly important to consider the delivery to branches as well as further logistic centers. Depending on the customer, processes needed to be individually adjusted to fit each end-client’s structure while being Case study 01 SCM SOLUTIONS

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Page 1: Behind the scenes of a cosmetic giant – The beauty of ... · PDF fileBehind the scenes of a cosmetic giant – The beauty ... using the FEFO method. A smooth, fast and paperless

Our customer

– COTY Inc. was founded by perfumer

François Coty in Paris in 1904, and has

established itself as a global fragrance

and cosmetic corporation.

– Nowadays, COTY represents more than

47 brands in over 40 countries, making

it one of the world’s biggest perfume

manufacturers.

– The product portfolio ranges from ultra-

prestige up to entertainment. COTY’s

portfolio includes some of the most

desirable beauty brands across four

major divisions: fragrance, decorative

cosmetics, skin care and body care:

adidas

Calvin Klein

Chloé

Davidoff

Marc Jacobs

OPI

philosophy

Playboy

Rimmel

Sally Hansen

Behind the scenes of a cosmetic giant – The beauty of perfect logistic processes

For a company´s success in the dynamic and demanding world of the beauty and cosmetics industry, perfecting logistics is highly important. The international beauty corporation COTY Inc.has announced its plans for further expansion in one of the most competitive industries with its increasing complexity for domestic and global distribution.

» Arvato understands the needs of the cosmetic industry. For our 2015 certificate, we have once again selected the Arvato warehouse in Düren from more than 40 sites as being the 'COTY Benchmark Warehouse'.«

Fredrik Händel

Distribution and Warehouse Director, COTY Services and Logistics GmbH

The starting point

For the COTY Prestige sector, the company has searched worldwide for a supplier

in order to consolidate multiple warehouses into a central location. Handling direct

deliveries to European countries, as well as to additional regional warehouses.

Therefore, the cosmetic corporation created branch-specifi c requirements such as

extensive safety standards.

From a customer’s perspective, it was highly important to consider the delivery to

branches as well as further logistic centers. Depending on the customer, processes

needed to be individually adjusted to fi t each end-client’s structure while being

Case study

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SCM

SO

LUTI

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Page 2: Behind the scenes of a cosmetic giant – The beauty of ... · PDF fileBehind the scenes of a cosmetic giant – The beauty ... using the FEFO method. A smooth, fast and paperless

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supported throughout by IT. Due to this, a significant increase in transparency along

the whole supply chain was granted.

Solution

In 2013 Arvato implemented COTY’s warehouse solution. Ever since, the company

has handled deliveries for the Prestige and Ultraprestige product divisions from

the logistics center in North Rhine-Westphalia. Daily deliveries within Europe to

Germany, Great Britain, France, Spain and Italy. Furthermore, Arvato supports

worldwide distribution to wholesalers in over 70 countries in the Retail Travel Sector,

as well as to other COTY regional warehouses.

For deliveries to retailers, Arvato handles packaging and labelling according to

channel and cross-dock-center requirements. As part of this standard goods flow,

this integration includes marketing materials, such as perfume samples.

Arvato has implemented modern technical and organizational methods to fulfill the

realization of specific requirements. Thereto belongs the execution of constructional

and organizational provisions for the storage and shipment of dangerous goods.

Furthermore, a system for continuous monitoring of the specific warehouse conditions

in terms of temperature and atmospheric humidity was introduced to the solution.

In addition the SAP driven full batch traceability monitors shelf life and shipping

using the FEFO method.

A smooth, fast and paperless picking process is guaranteed through RF scanners.

Finally, by installing of conveyor systems, an automatic picking, stock sorting and

full customer requirements process flow are ensured.

Result

This close cooperation has led to very positive results: The targets agreed upon

for KPIs are exceeded at all times. Moreover, COTY has gained a higher degree of

transparency through extensive reporting measures, resulting in high levels of

satisfaction among COTY’s clients.

Warehouse statistics

– Over 30,000 pallet storage locations

– Delivery to global customers in

> 70 countries

– Over 100,000 picks per day in peak times

– > 99.8 % on-time shipments

– > 99.8 % picking accuracy

– Peak volumes:

> 1,000 outbound pallets per day

> 1,200 inbound pallets per day

Questions? Please get in touch with us.

Arvato SCM Solutions | Michael Schröder Business Development Manager Phone: +49 5241 80-89136 | E-Mail: [email protected] www.scm.arvato.com

As the leading European service provider in the segment; Arvato has worked with world renowned fashion, beauty and FMCG brands for over 15 years. Arvato’s bespoke services span retail logistics as well as the complete e-commerce value chain: Implementation and operation of online-shops, digital imaging, logistics and shipping including returns management, as well as financial services, customer service and e-commerce consulting. Arvato is a wholly owned subsidiary of Bertelsmann.

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