Improved predictability brings potential savings to cosmetics multinational

A Brazilian company, considered one of the strongest brands globally in the cosmetics sector, with over 50 years of history and having served more than 100 million consumers, operates in 7 countries across Latin America, the United States, France, and Malaysia. The brand continually strives to create a positive impact through innovation and sustainability.

This commitment extends to improving the company’s processes and policies. In this regard, this client partnered with Objective, experts in agility, to develop solutions aimed at transforming the complex landscape of its order policy and bringing greater predictability to its business. Let’s delve into how this partnership became one of the success stories for the company:

The ideal direction

The system of a manufacturing company involves a complex chain of processes, teams, strategies, logistics, and deadlines. These factors, combined with rapid growth, can lead to occasional gaps that result in high costs. In such cases, an outside perspective can provide the ideal solution to challenges deemed impossible to overcome.

The company faced the challenge of achieving greater predictability and reducing budgetary costs. They needed to find ways to optimize resources allocated to the order pipeline, salaries, and deliveries. This was because they allocated extra resources during seasonal periods, for example.

Additionally, there was a significant disconnect between the company’s administrative and financial teams and the frontline resellers. This challenge further exacerbated financial instability because problems only became visible at the end of the process.

Proximity is the key

The first step of this project involved revising the retroactive order policy. Due to the expanded operational complexity over time, various factors had made these rules flexible and cost-unpredictable.

The specialized work of Objective’s consultants resulted in the rewriting of the retroactive order policy. At this point, all items that caused unpredictability in the budget were either removed or adjusted. Consequently, the allocation for seasonality, which used to be assessed on a month-to-month basis, became predictable at the beginning of the year since the company already had a history and defined periods for this budget change.

Another problem solved was the implementation of monthly strategic meetings with market leaders to partially convey the impact of these items on resource availability. In addition to this, a closer communication process was established between the client’s Sales and Administration teams and the regional leaders who worked directly with resellers. This way, there was monthly alignment to proactively address the challenges faced in order fulfillment, eliminating the need for exceptions within the retroactive policy.

The power to transform a complex scenario

All these changes represent an exponential financial gain for the company. This is because the adjustments to the retroactive policy and the improvement in communication within the order journey impact financial resource savings for this Objective customer.

Moreover, these changes contribute to advancing the company’s governance with improvements and innovations that directly impact the business. Predictability and insights generated by improved communication drive more informed decision-making, leading to increased efficiency and cost reduction—fundamental factors for growth in today’s market.

This successful partnership has been ongoing for 2 years and is expected to continue for many more. This is because various aligned strategies exist to further enhance process efficiency and the company’s growth in the coming years.

Does your company face complex challenges that seem impossible to solve? Talk to our experts and find a path to success through agile methods and innovative strategies.