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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
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throughout supported by IT. Due to this, the significantly increase 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, was a system for continuous monitoring of the specific warehouse
conditions in terms of temperature and atmospheric humidity introduced to the
solution. In addition the SAP driven full batch traceability monitors shelf life and
shipping using the FEFO method.
Using RF scanners a smooth, fast and paperless picking process is guaranteed. Finally,
the installation of conveyor systems an automatic picking, stock sorting and full
customer requirements process flow is ensured.
Result
This close cooperation has led to very positive results: The targets agreed upon for
KPIs are exceeded at all times. Furthermore, COTY has gained a higher degree of
transparency through an 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 palettes per day
> 1,200 inbound palettes 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 and beauty 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, online marketing, 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 SE & Co. KGaA.
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