ITTOOLKIT [ IN PRACTICE ] While selling beauty products may seem like a straightforward endeavor, “When you talk about cosmetics, it’s a world of complexity,” says Germán Ricardo Rodríguez Parra, operations strategic planning senior manager, supply chain, for Latin American direct-sales beauty firm Belcorp. “Complex” might even be an understatement for Belcorp, which operates three brands: need for greater flexibility and agility in the supply chain.
A Supply Chain With Beauty and Brains
THE CUSTOMER Belcorp is a Latin American direct- sales beauty corporation, guided by its purpose: “We promote beauty to achieve personal fulfillment.” The 50-year-old company offers more than 2,000 SKUs across three commercial brands: L’BEL, ésika, and Cyzone. Belcorp provides an entrepreneurial opportunity to its more than 900,000 beauty consultants across Latin America and the Caribbean. THE PROVIDER: ToolsGroup offers probabilistic demand and supply planning solutions used by retailers, distributors, and manufacturers to enhance supply chain resiliency and efficiency. The company harnesses AI and real-time data from various sectors of the enterprise to help companies facilitate agile and effective decision-making. by Karen Kroll
What’s more, it’s typically difficult to shift any unused materials or packaging from one brand to another, given their different focuses. “If you don’t plan well, you can end up with a lot of unused inventory,” Rodríguez notes. A SUPPLY CHAIN IN NEED OF A GLOW-UP Belcorp works with about 200 suppliers located around the world. For most of the materials it sources, the company manages the logistics processes from the point of supply through to its plants, working with best-in-class fourth- party logistics (4PL) providers, says Nicolas Frasquet, corporate procurement executive director. Belcorp produces its cosmetic products in four countries: Mexico, Peru, Ecuador, and Colombia, which is its most important manufacturing site. Belcorp also operates 12 distribution centers in Latin America and one in the United States. While its primary markets are Colombia, Mexico, and Peru, Belcorp offers its products in 12 Latin American countries and in the United States.
• L’BEL targets women aged 30 and older and employs advanced skincare technology. • ésika caters to women between 25 and 45 years old; this brand aims to inspire confidence and unlock the potential of Latin American women. • Cyzone targets members of Generation Z and focuses on affordable cosmetic products, while considering current digital market trends. Belcorp’s network of beauty consultants offers the company’s products directly to potential customers. Like many cosmetics companies, Belcorp leverages market trends to introduce new products every few weeks. While these evolving product lines are key to sales, they also require an agile and sophisticated supply chain planning and optimization approach, given the brevity of product lifecycles. Additionally, Belcorp’s direct- selling business model operates with 18 commercial cycles, or marketing campaigns, per year. This creates higher volatility in customer demand and a
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