February 3, 2023
How to Solve Cosmetics Logistics Supply Chain Issues
Even if there is a great product, poor logistics planning can turn things ugly for the brand. Cosmetics and personal care products generally fall into the category of items that customers can’t wait to receive; any delay across the supply chain can affect an individual order and the entire brand to a great extent. A negative delivery experience can reach many people through online reviews and social networks, turning away the original customers and potential buyers.
If it’s a one-time situation in the cosmetics supply chain, it is possible to deal with it. However, if customer complaints, order reworks, or see returns pile up, the situation will damage the brand irreparably.
A supply chain makeover
For the cosmetics industry, a fast and efficient supply chain is essential for gaining a competitive advantage and for handling the requirements of retailers correctly while at the same time facing the many challenges inherent to supply and demand. In addition, to give the right experience to customers, businesses must ensure the quality of their products; this involves monitoring the temperature of sensitive products stored in a controlled environment throughout the product’s life cycle until it reaches the end customer. However, for brands to meet these expectations takes work; that is the challenge.
Sourcing and supplies
The cosmetics industry relies on natural ingredients such as cocoa, vanilla, zinc, and others from abroad. Any inconvenience with transportation or buying requirements can cause supply chain disruptions. Therefore, companies must monitor their supply chain to minimize and predict disruptions and take measures to manage risk before it occurs. When every aspect of the supply chain has equal visibility of real-time metrics during each delivery, it results in a smoother and more efficient workflow. It will also make it easier for companies to communicate with every part of their supply chain network since they all have access to the same performance information.
Trends and consumer demand
Changes in trends are a constant in the cosmetics industry. What was famous a year ago may be less popular now. With how quickly trends are changing, the supply chain needs to be able to adapt just as fast for a business to succeed.
Once the cosmetics are through production, companies must be able to get their shipments out to consumers quickly so they can beat their competitors. As mentioned above, consumers expect to get their products as soon as possible, and businesses will be significantly affected if that does not happen.
Temperature control
Cosmetics are often specific and unique due to their composition and are sensitive to certain temperatures, meaning they can get damaged due to changes in the properties of ingredients. They often require special transport conditions. It can become a problem when they must be delivered using different transportation methods and are exposed to various climate and weather conditions. Therefore, cosmetics need to be maintained and monitored throughout transit in the supply chain.
How to Reduce Supply Chain Issues
The cosmetics industry has been growing fast in recent years, and this trend will continue. Risks are significant due to the constant changes in trends, the sensitivity of these products, and possible disruptions caused by unstable economic and political situations.
A solution that uses cloud-based software to keep track of every part of the supply chain, including demand planning, procurement, inventory management, logistics, customer service, and production, will help to reduce these risks.
Are you ready to start improving your demand forecasting?
At Last Mile Logistics, we can provide the tools and guidance to become extra relevant within your supply chain. Our services are taking our partners to reach the next level. Call now if you have an ROP.