End-to-end digital supply chains win first place in the cosmetics pageant

With €77 billion retail sales in 2016, the European cosmetics market is the largest in the world, but there’s a very fine line between success and failure in this market. It is common to see organizations invest heavily in expensive product line launches, potentially resulting in a surge in demand, which means failing to get the right products in the right place at the right time could prove disastrous. While manufacturers battle to keep the shelves stocked, they face the unpredictable tides of in-store promotions and sudden spikes in demand, which can put them on the back foot. Moreover, today this may also mean developing a direct B2C channel and supply chain that will also need to meet and exceed brand expectations. Failure to fulfill means the sale is lost, and consumers may well purchase competitors’ products instead. That is, the supply chain is not just delivering a product, it is helping to deliver the brand promise and experience. Failing to deliver the goods is likely to impact brand loyalty.