Christophe Guesnet, General Purchasing Director gives his testimonial on "In-house" experiment at L'Oréal.
"In terms of direct impact on the environment, the “In-house” system eliminates the road transport of empty bottles and all the associated packaging, especially pallets. For the supply chain, the closeness of bottle production at the filling site results in more flexible production scheduling, which is adjusted on a daily basis. So a bottle can come off the line in the morning and be filled right away. Stock is reduced to the minimum and for some lines we produce just-in-time. Additionally, these products are made with very innovative investments in terms of industrial production, and they improve economic performance.
The “In-house” system is a comprehensive project in direct line with the group’s sustainable development targets.”
For more information on this topic, see the GRI data sheets:
“In-house” production consists of installing a supplier’s machines and staff on the actual premises of the L’Oréal production plant.
The concept, which requires a substantial production volume to be attained to justify all the investment, is ideally suited to mass production cosmetics and the technological specialisation of L’Oréal’s plants. The process is dedicated to simple packaging with a short production line that is easy to install at an existing site.
In L’Oréal, “In-house” production was introduced for the first time in 2010. It concerned making plastic bottles for Elsève and Fructis hair care products for the European market at Rambouillet and Settimo respectively. At present, five production sites are concerned: in France at Rambouillet, in Belgium at Libramont, in Italy at Settimo, in the United States at Florence and in Brazil at São Paulo. In 2012, more than a billion finished products will be made using this principle.
L’Oréal is planning to inaugurate two new installations by the end of 2012 in Poland and Mexico, and is investigating other sites, wherever the system can be used.