Cosmetics Logistics: The Beauty of an Optimised Supply Chain

  • Dec 10 ,2022
  • /
  • by AWL India Pvt. Ltd.
Cosmetics Logistics: The Beauty of an Optimised Supply Chain

The demand for cosmetics products is unpredictable and is mainly driven by the industry trends. The trends of the cosmetics industry change rapidly, thus, the cosmetics industry is always at odds with demand and supply. Consumers of cosmetics products can be fickle while making product decisions because what is popular now may be out of date tomorrow. The major cosmetic companies along with beauty and skin care corporations actively push the current trends, by often enrolling celebrities to promote their products. This directly impacts the sale of a product. What is trending today can become obsolete next week because of such marketing campaigns. Moreover, when the demand of a product rises in the market, it is important to make sure that the item will be on the shelves and accessible for purchase while they are still hot.

Making the products available at the point of sale is crucial, and it necessitates timely and dependable transportation, storage, and distribution. Your business requires an optimised supply chain to efficiently make cosmetic products available at the sale point. To efficiently manage the cosmetics supply chain, AWL India has adequate knowledge and experience to carry out all the operations of the cosmetics supply chain and boost your business performance. From procurement of raw materials to warehousing and secure shipment of products, AWL India is the leading logistics partner for the most renowned cosmetic brands in India. 

Is Your Supply Chain Working For The Benefit Of Your Business? Let’s Find Out!

Cosmetics sector has the most rapidly changing demands. Optimised cosmetics supply chain management is capable of delivering the products and matching up with these changing demands. That being said, the cosmetics sector is a wonderful example of how most supply chains are transitioning to a demand market. Consumer demand and rapidly shifting trends drive all product creation. This push is accelerating production and fulfilment. With a celebrity snapshot or video, trends may shift in seconds. When a celebrity complains about a product on social media, the manufacturer is unable to give it for free. But when the same celebrity shows appreciation or affection for a product, manufacturers can't produce it fast enough. 

Having difficulties in your supply chain can result in huge monetary losses. However, in the case of an optimised supply chain, you can take advantage of multiple benefits that come along with it. AWL India offers a huge amount of logistics and storage solutions to avoid any kind of damage to the product and also ensures an extra layer of protection during transportation and distribution to make sure that the products remain in pristine condition.

Benefits Of Effective Supply Chain Management

There are multiple benefits that effective SCM offers. Moreover, having an effective supply chain management system can enable you to focus on other important aspects of the business. Some of the benefits of an effective cosmetics supply chain are as follows:

Improved Flow Of Information

For businesses, information flow is a significant concern. Around 76% of businesses lack an automated flow of information across the supply chain, and half of businesses believe fragmented information leads to lost sales opportunities. AWL India ensures effective supply chain management that includes integrated software solutions that eliminate bottlenecks and enables the smooth flow of information across various channels. It offers a comprehensive end-to-end view of the supply chain. Businesses can use the improved data access and information gained to make more informed decisions.

Real-Time Data Tracking

Having real-time data on raw material availability and production delays helps businesses to improve their operations by adopting backup plans to avoid further delays. Without real-time data, businesses sometimes lack the time to implement their alternative plan. Therefore, in the rapidly changing trend market, not adapting quickly can result in challenges such as out of stock goods or late delivery to end users.

Meeting Customer Demands

If the consumer sales climb by 10% in a given week, a retailer may end up buying 15% more inventory in reaction to the increase and the belief that demand would continue. Effective supply chain management and data analysing tools by AWL India can help the supplier after noticing what looks to be a 7% rise in demand. Eventually, the factory may see an exaggerated 20% rise in orders. Efficient supply chain management can help in demand forecasting and also in understanding the demand trends to efficiently plan for future orders.

Shipping Optimization

Shipping efficiency is a top goal for supply chain leaders due to escalating expenses. Identifying the most effective shipping methods for tiny packages, huge bulk orders, and other shipping circumstances allows businesses to deliver items to consumers faster while reducing expenses. Not only does this ensure cost and delivery time reductions for the business but it can also help in improving customer satisfaction.

Lowering Of Overhead Expenses

Overhead expenses are largely influenced by warehouse fulfilments. AWL India can help in reducing these expenses by optimising your warehouse structure, installing the correct automation solutions to increase efficiency, and putting in place a superior inventory management system that ensures smooth operations by reducing overhead expenses.

Enhanced Risk Mitigation

Detailed supply chain data analysis can expose possible hazards and any unforeseen circumstances, allowing businesses to have backup plans in place to quickly respond to unforeseen events. AWL India helps in preventing bad consequences by taking early actions rather than responding to supply chain disruptions, quality control difficulties, or other concerns as they develop.

Conclusion

These are some of the advantages of having an optimised supply chain. AWL India is the leading logistics and warehousing company in India that can help your business to make better decisions, properly forecast and respond to market and demand changes, and prevent supply chain disruptions, and many other advantages. Having AWL India as your supply chain partner not only means fewer interruptions and satisfied customers, but it also helps in increasing cash flow by implementing more cost-effective alternatives for eliminating unnecessary spending and lowering overhead expenses also contributes to good cash flow. Optimised supply chain management has direct and secondary consequences that assist the efficient, smooth movement of information and commodities from procurement through final delivery.

Also Read: Challenges of the Cosmetic Supply Chain Industry

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