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OPERATIONS<br />
Targeting excellence in Operations<br />
to achieve sustainable performance<br />
The reorganization of Operations, which began in 2007, is continuing.<br />
Implementing the same processes and operational system worldwide<br />
and the specialisation of plants according to technology will increase<br />
efficiency and creativity while cutting costs.<br />
Certification of a lipstick mechanism (Tokyo, Japan).<br />
highlights<br />
28<br />
Roll-out of the new supply chain organisation<br />
in four geographic clusters (Europe, Asia, Latin<br />
America, and North America).<br />
L’Oréal has bolstered its industrial presence at the<br />
gateway to the Middle East with the acquisition of<br />
Canan, which has a plant near Istanbul (Turkey).<br />
CONTINUOUS STREAMLINING<br />
OF PRODUCTION<br />
A multi-year programme aims to improve the<br />
efficiency of the group’s industrial facilities.<br />
Unproductive time in packaging was thus reduced by<br />
6.4% in <strong>2008</strong> and the optimisation of manufacturing<br />
techniques has increased production capacity by<br />
around 22%. In Europe, the specialisation of plants<br />
according to technology has led to more streamlined<br />
production facilities.<br />
ROLLING OUT THE NEW SUPPLY CHAIN<br />
By continuing with the integration and centralisation<br />
of the supply chain, the group has gained greater<br />
control over its logistical processes, enabling it to<br />
react quickly and effectively to market fluctuations,<br />
as well as improve service rates and inventory<br />
control. Logistics-related costs and inventories<br />
have been kept under control thanks to a policy of<br />
concentrating logistical centres and hubs in Europe,<br />
and redesigning transport plans in North and Latin<br />
America.<br />
CENTRALISED PURCHASING<br />
Centralising all L’Oréal purchasing under a single<br />
authority in four purchasing centres across the globe<br />
has helped to offset the rise in raw materials prices,<br />
boost efficiency and speed up innovation projects.<br />
COMBINING PACKAGING INNOVATION WITH<br />
ENVIRONMENTAL PROTECTION<br />
Combining innovation with sustainable development<br />
is the goal of L’Oréal’s Packaging Research. The<br />
group is committed to using only paper and<br />
cardboard packaging made from pulp originating<br />
from sustainably managed forests.<br />
MINIMISING IMPACT ON THE PLANET<br />
In <strong>2008</strong>, the main environmental performance<br />
indicators improved significantly as did safety<br />
results.<br />
Centralisation of all group purchasing<br />
in four geographic clusters.<br />
The Libramont (Belgium) site has chosen green<br />
energy by installing a biomethanisation facility<br />
on the plant site, which has led to an eightfold<br />
reduction in CO 2 emissions.
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