Purchasing domains

Sourcing at L’Oréal is organized in 4 « sourcing centers » that actively contribute to value creation for the Group. For several years, Sourcing Department has put in place a responsible and sustainable strategy with its suppliers worldwide. 

Shyashin supplier in Shanghai (China). 2013.

Employees in an assembly room at the Shyashin plant in Shanghai, China, in May 2013. © Patrick Wack 

Shyashin supplier in Shanghai (China). 2013.

Employees in an assembly room at the Shyashin plant in Shanghai, China, in May 2013. © Patrick Wack 

Sourcing teams are specialized by types of goods and services; they serve to link up with our specialized suppliers which are split into six sourcing domains. 

Raw materials


Raw materials

Various raw materials are used to make up the formulas used in production : polymers, fats, natural products, perfumes, solar radiation filters, vitamins… L'Oréal buys from specialized suppliers who are involved in a constant process of quality and safety research. The Quality and Research teams are very much involved in guaranteeing the high quality of supplies and in finding new raw materials.

Packaging Components


Packaging

The purpose of a packaging component is to protect the product and to increase its value. For L'Oréal, it is essential that packaging should be both innovative and environmentally friendly. The group has built up an extensive network of suppliers of plastic pots and bottles, glass pots and bottles, injection-molded parts, plastic tubes, aluminum tubes, aerosol cans, diffusion systems, labels, notices, corrugated cardboard and pouches. 

The packaging teams work together with the suppliers to design and optimize product packaging, conducting research into innovative concepts. L'Oréal also has a Packaging Research and Expertise Center tasked with investigating, evaluating and approving the standard solutions proposed by the suppliers.

Point-of-sale - Promo & Marketing Services


Advertising at the point of sale

The promotion of its products is a strategic communication axis for the L'Oréal brands. Point-of-sales (POS) advertising and promotional items (promotions) are important ways of winning over consumers. They require creativity, innovation and competitiveness on the part of multi-material POS suppliers (metal, plastic, wood, etc.), cardboard POS suppliers (displays), cases, print materials (notices, booklets, etc.) and free consumer gifts (kits, textiles, accessories, etc.).In this field, the Purchasing teams rely on the knowledge of their suppliers to formulate a joint quality vision.

Moreover, to supplement the POS material, the brands rely on marketing services aimed at introducing the products and accompanying the consumer at the point of sale. These are design and post-production agencies, advertising agencies, upstream market research companies and digital support services.

Industrial & Property


Suppliers > Domaine d'achard > Industrie et Immobilier

In order to equip and operate its production lines in 42 plants all over the world, L'Oréal joins forces with numerous specialized production equipment suppliers on a day-to-day basis (processing equipment, weighing equipment, washing equipment), packaging machines (fillers, labelers, distributors, regrouping machines, etc.) and industrial equipment (compressors, heaters, cooling units, palleting machines, fire safety). The Occupational Safety and Environmental teams look into equipment that will improve the environmental performance of the group, while maintaining a safe and health work place.

Indirects


PLANE - SUPPLIERS - INDIRECTS

Indirects include general purchases which the L'Oréal group has structured into broad categories of services and supplies: RH & Specialist Services: 35% IT & Telco: 20% Facility Management & Utilities: 18% Transportation & Insurance: 15% Travel & Events: 12%

Contract manufacturing


Subcontracting

Indirects include general purchases which the L'Oréal group has structured into broad categories of services and supplies: RH & Specialist Services: 35% IT & Telco: 20% Facility Management & Utilities: 18% Transportation & Insurance: 15% Travel & Events: 12%