Case study SCM SOLUTIONS

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

For a company´s success in the dynamic and demanding world Our customer of the beauty and industry, perfecting logistics is highly important. The international beauty corporation COTY Inc. – COTY Inc. was founded by perfumer has announced its plans for further expansion in one of the François Coty in Paris in 1904, and has established itself as a global fragrance most competitive industries with its increasing complexity for and cosmetic corporation. domestic and global distribution. – Nowadays, COTY represents more than 47 brands in over 40 countries, making »Arvato understands the needs of the cosmetic industry. it one of the world’s biggest For our 2015 certificate, we have once again selected the manufacturers. Arvato warehouse in Düren from more than 40 sites as being the 'COTY Benchmark Warehouse'.« – The product portfolio ranges from ultra- prestige up to entertainment. COTY’s Fredrik Händel portfolio includes some of the most Distribution and Warehouse Director, COTY Services and Logistics GmbH desirable beauty brands across four major divisions: fragrance, decorative 01 The starting point cosmetics, skin care and body care: adidas For the COTY Prestige sector, the company has searched worldwide for a supplier Calvin Klein in order to consolidate multiple warehouses into a central location. Handling direct Chloé deliveries to European countries, as well as to additional regional warehouses. Davidoff Therefore, the cosmetic corporation created branch-specific requirements such as Marc Jacobs extensive safety standards. OPI philosophy From a customer’s perspective, it was highly important to consider the delivery to Playboy 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 Sally Hansen throughout supported by IT. Due to this, the significantly increase transparency Warehouse statistics along the whole supply chain was granted. –– Over 30,000 pallet storage locations 02 Solution –– Delivery to global customers in In 2013 Arvato implemented COTY’s warehouse solution. Ever since the company > 70 countries has handled deliveries for the Prestige and Ultraprestige product divisions from the logistics center in North Rhine-Westphalia. Daily deliveries within Europe to –– Over 100,000 picks per day in peak times , Great Britain, France, Spain and Italy. Furthermore, Arvato supports worldwide distribution to wholesalers in over 70 countries in the Travel Sector, –– > 99.8 % on-time shipments as well as to other COTY regional warehouses. –– > 99.8 % picking accuracy For deliveries to retailers Arvato handles packaging and labelling according to channel and cross-dock-center requirements. As part of this standard goods flow, –– Peak volumes: this integration includes marketing materials, such as perfume samples. > 1,000 outbound palettes per day > 1,200 inbound palettes per day 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.

03 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.

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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.