L’Oréal’s CSCO on Adapting to Customer Expectations
Feb 20, 2024
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Damien Decouvela, L’Oréal's CSCO, discusses how L’Oréal stays agile to meet customer needs, e-commerce operations, handling volatility, building products as experiences, and recommendations for supply chain leaders to adapt to customer expectations.
Adapting to evolving customer expectations through customization and e-commerce tools is vital for supply chain success.
Prioritizing resilience and agility in supply chain operations helps L’Oréal navigate volatile demands and disruptions effectively.
Deep dives
Adapting to Changing Consumer Expectations
Consumer expectations and purchasing behaviors have drastically evolved due to global trends like social commerce and sustainability demands. L'Oreal, being consumer-driven, has identified five major trends impacting their supply chain, such as the globalized demand driven by social networks, the growth in e-commerce and social commerce, the shift towards experiential consumer expectations, and the increased focus on sustainability and talent shortage. To adapt, L'Oreal is undergoing massive transformation programs with data and tech as a common enabler.
E-commerce Strategy and Operations
E-commerce and social commerce have experienced rapid growth, with e-commerce sales accounting for 29% of L'Oreal's revenue last year. L'Oreal has prioritized understanding consumer expectations to shape their offerings, including e-commerce-ready packaging and personalized services. They are enhancing capabilities for direct e-commerce, optimizing supply chain operations for peak events, and leveraging data for consumer satisfaction monitoring and performance measurement.
Resilience and Agility in Supply Chain Operations
L'Oreal emphasizes building resilience and agility in their supply chain operations to navigate volatile demands and disruptions, which have become the new normal. They focus on capacity building, agile sourcing and manufacturing, network resilience, and data-driven decision-making. By anticipating growth, partnering for capacity, and enhancing data transmission across the chain, L'Oreal ensures their supply chain remains responsive and adaptable to evolving market challenges.
How an organization of L’Oréal’s scale stays sufficiently agile to meet customer needs. (2:52)
L’Oréal’s view on e-commerce operations and their evolution. (6:23)
Handling volatility across plan, source, make and deliver capabilities and the wider ecosystem. (10:59)
Building products as “experiences” through additional services. (14:51)
Recommendations to help supply chain leaders keep pace with and adapt to customer needs. (18:42)
Host Thomas O’Connor and guest Damien Decouvelaere, global CSCO at L’Oréal, explore L’Oréal’s approach to profitably adapting to customer expectations despite significant volatility. Damien walks listeners through the five major trends impacting L’Oréal’s supply chain, most of which stem from evolving customer preferences. Thomas and Damien also discuss L’Oréal’s strategy for diversifying customer experience across distinct markets, especially through customization and e-commerce tools. The pair close the show with three recommendations for supply chain leaders to adapt their operations to customer expectations.
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