Purchasing domains

Purchasing Corporate is organized by five “sourcing centers”, one by geographical zone and six Purchasing domains.

Purchasing Areas
Purchasing Areas

Within each purchasing division, the buyers incorporate the requirements and expectations of their internal clients into their technical specifications, especially when it comes to operational aspects: quality, logistics, production, packaging, development, research and innovation.

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


Packaging

The purpose of packaging 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 advertising - Advertising - 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.

Capital expenditure


Equipment

In order to equip and operate its production lines in 41 factories 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.

Indirect purchasing


Indirect sourcing

Indirect purchases include general purchases which the L'Oréal group has structured into broad categories of services and supplies:

  •  Intellectual services
  •  Travel and subsistence
  •  Meetings and events
  •  Facility management
  •  Energy
  •  Human resources services (temporary, training…)
  •  IT and telecommunications
  •  Supplies (office, laboratory, industrial and logistics supplies)
  •  Logistics (transport and services)

Contract manufacturing


Subcontracting

En parallèle de sa propre production interne, le groupe fait appel à un panel d’entreprises sous-traitantes pour le conditionnement ou la finition de produits finis, la fabrication de produits finis spécifiques (savons, crayons, lingettes…) et les se