Efficiency and Productivity in the Beauty Industry:
How WMS and Put to Wall Are Transforming the Supply Chain
The beauty sector has experienced exponential growth in recent years, driven by the increasing demand for personal care products, cosmetics, and aesthetic treatments. This boom has created the need to improve operational efficiency in the supply chain to meet demand without compromising service quality. This is where warehouse management software (WMS) and the Put to Wall system come into play, two key tools for maximizing productivity in this competitive sector.
The Importance of Supply Chain Efficiency in the Beauty Industry
The global market for beauty and personal care products was valued at approximately $511 billion in 2021, with projections suggesting it will reach $716 billion by 2025. To remain competitive, companies in the sector must optimize their logistics operations, and one of the best ways to do this is through the implementation of a warehouse management system (WMS).
WMS: The Key to Boosting Productivity in Warehouse Management
WMS is a tool that allows companies to control and manage the daily operations of a warehouse. In the beauty sector, where product diversity and volume are high, WMS helps to:
Optimize storage space:
By efficiently organizing products in the warehouse, search time is reduced, and the picking and packing processes are streamlined. This is essential when applying inventory management methods like FIFO (First In, First Out) and LIFO (Last In, First Out), which help manage product rotation based on need.
Reduce picking errors:
Studies show that 70% of supply chain errors occur during the picking process. A WMS minimizes these errors by automating and guiding operators.
Improve traceability:
It allows for detailed tracking of products from entry to exit, which is crucial for managing inventories and anticipating replenishment needs.
Put to Wall System: Efficiency in Order Fulfillment
The Put to Wall system is a sorting solution that helps optimize order preparation, especially when handling a high volume of orders. This system involves sorting products into designated compartments for different orders, which speeds up consolidation and packaging.
Benefits of Put to Wall in the Beauty Sector:
Agility in order processing:
In high-demand environments, such as beauty product promotions, Put to Wall can increase processing speed by up to 50%.
Labor cost reduction:
By consolidating the picking of multiple orders into a single flow, the need for additional operators is minimized, reducing labor costs by up to 30%.
Flexibility to handle demand peaks:
The system easily adapts to demand fluctuations, allowing beauty companies to respond quickly to seasonal promotions or product launches.
Learn about some companies in the sector that implement a WMS and PTW
The implementation of a warehouse management system (WMS) and a Put to Wall system has proven successful in several leading beauty companies. Below are some standout examples:
L’Oréal, one of the giants in the cosmetics industry, has integrated an advanced WMS in its global distribution centers. The company implemented this system to optimize the management of its vast product inventory and improve the efficiency of its logistics operations. Thanks to this technology, L’Oréal achieved:
20% reduction in storage costs:
Through better space utilization and more efficient inventory management.
99.9% order accuracy improvement:
Automated picking and strict inventory control minimized errors and returns.
30% acceleration in delivery times:
Allowing L’Oréal to meet promised delivery times and improve customer satisfaction.
Estée Lauder, known for its luxury brands in cosmetics and skincare, has adopted a Put to Wall system in its distribution centers to handle the growing demand for its online products. This change allowed the company to:
Increase order processing speed by 40%:
Especially during demand peaks, such as Black Friday and new product launch campaigns.
Reduce packaging time by 25%:
The Put to Wall system facilitated order consolidation, resulting in faster and more efficient packaging.
Flexibility to manage a 15% increase in online orders:
Estée Lauder was able to handle a higher volume of orders without significantly increasing its workforce.
Sephora, with its focus on customer experience and personalization, implemented both a WMS and a Put to Wall system to improve its logistics operations. The results were impressive:
35% reduction in order processing time:
Allowing Sephora to offer faster delivery times to its customers.
99.8% shipping accuracy improvement:
Resulting in a significant decrease in returns and customer complaints.
Resource optimization:
WMS and Put to Wall allowed for a more efficient allocation of labor resources, reducing operational costs by 20%.
P&G, which owns brands such as Olay and Pantene, implemented a WMS and Put to Wall in its supply chain to improve efficiency and flexibility in beauty product delivery. The benefits they obtained include:
50% increase in order processing capacity:
Allowing P&G to handle demand during product launches without compromising service quality.
25% reduction in transportation costs:
Thanks to better planning and shipment consolidation.
Improvement in customer experience:
Faster and more accurate delivery times contributed to greater customer satisfaction and loyalty.
Adopting a warehouse management system (WMS) and a Put to Wall system can be a determining factor in improving productivity in the beauty sector. These tools not only optimize operational efficiency but also allow companies to quickly adapt to market demands, reduce costs, and improve customer satisfaction.
For companies in this sector, investing in these technologies is not just an option but a necessity to stay competitive in an increasingly dynamic and demanding market.
