L'Oreal modernizes packaging function, eliminates silos between North and Latin America by restructuring region into L'Oreal Packaging Americas; company is able to operate more consistently, increase efficiencies for better results, says L'Oreal executive
RAMSEY, New Jersey
June 17, 2014
– L'Oreal recently revamped its packaging organization for the Americas Zone. Here, in an exclusive report for Beauty Packaging, Ludovic LeCaro, L'Oreal's packaging head of cosmetics, describes the changes and the opportunities that came along with that transition.
In 2013, L'Oreal made the decision to further modernize the packaging function by eliminating silos between North and Latin America and transitioning into one unified zone. By restructuring the region into L'Oreal Packaging Americas, the company is able to operate more consistently and increase efficiencies to deliver better results.
As a single unit, the Operations Division steers worldwide production and product distribution. Packaging manages product conception from the early marketing idea, through the supply chain to the end of its life cycle. We are engaged at all levels of the organization to drive our technical solutions with the highest level of quality on time and at the right cost.
To become more responsive and adapt to the specifics of local markets, the industrial function is spread out over five major geographical zones. This proximity reduces the distance that separates consumers from the factories and ensures them access to products at the best possible price.
This strategic tranSiti011 came with amazing opportunities, one of them being the ability to function as one group and align our packaging goals and objectives towards one vision.
As a result, the new Americas Packaging became organized by "metier" with teams operating by dedicated focus areas: cosmetics, skin and hair.
This organizational change allows a clear alignment of the technical commodities where a product can be developed more consistently with a higher level of attention on--what we refer to as--the motor of conception. It also represents a change in mindset, where packaging offers opportunities to think more globally, to design-to-cost modular conceptions Cor the zone that can be adapted to the local markets and to support our sustainability goals by reducing our transportable waste.
With the new Americas scope, individuals in packaging are also being challenged to evolve and innovate, We started to look in the mirror and reHect on our behaviors, adapt to other cultures and wavs of working, use new communication tools to share technical ideas, leverage the global knowledge and experience with other countries, and cross-fertilize our best practices into common processes.
Through acquisitions, globalization of L'Oreal's brands and alignment of its packaging function within the Americas Zone, it becomes apparent that packaging at the company is no longer a "back office-type function that simply issues technicil specifications. The new organization allows all layers orpackaging to strengthen their technical skills while perfecting an engineering mentality with strong business acumen.
This harmony between expertise and customer service attitude will allow Packaging at L'Oreal to become a key strategic business partner and Further contribute to building a solid foundation to continually support our group's strategy. *
About the Author
Ludovic LeCaro is L'Orears packaging head of cosmetics.