Ref: IMD-7-2296

Case study

Reference: IMD-7-2296

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L'Oréal: The beauty of supply chain digitalization

Ralf W. Seifert

By Richard Markoff and Professor Ralf W. SeifertRalf W. Seifert

L’Oréal, the world leader in beauty products, began to rethink its vision for the industry. The world was on the cusp of a digital future full of possibilities. For a company known for its consumer-pleasing beauty products and owner of some the world’s most iconic brands, this meant thinking about innovation in a different way. It would no longer mean only providing the best products but also continuously adapting the industry to market needs. Through a combination of goal setting, training and communication, the digital transformation began, first with efforts in marketing, sales and consumer outreach, but supply chain quickly moved to a prominent role in helping address questions about how digitalization would affect the company’s products and consumer expectations. Starting with a vision of the CEO, Jean-Paul Agon, the company found itself on a journey to challenge its culture, its approach and even what its value proposition was. Along the way, the supply chain became a force for bringing together the different functions of a large, complex organization to identify and implement new business models in the digital age that cut to the heart of the company’s operations.

Learning Objective

  • Illustrate an effective, successful digital transformation and link this to Industry 4.0/supply chain digitalization capabilities by focusing on L’Oréal’s success
  • Examine the challenges of supply chain digitalization, the role of senior leadership in agenda setting, global digital governance, linking the supply chain digital strategy to the company-wide digital strategy, planning for scale from pilot to deployment, and the external/internal development choice
Keywords Business to Consumer, Consumer Goods, Digital, Digital Transformation, Digitalization, Industry 4.0, Supply Chain
Settings Global, France
L'Oréal, Consumer Goods, Cosmetics and Perfumes
2010-2020
Type Field Research
Copyright ©IMD 2021
Language English
Related material Teaching note, Video
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Reference: IMD-7-2296

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