Blog

Jun 02, 2023

Cosmetics supply chain

The cosmetics manufacturing industry is a part of the most complex ones that

The cosmetics manufacturing industry is a part of the most complex ones that exist, yet, its supply chain operations are probably one of the least talked about. Cosmetics a product category that plays with a variety of textures, colors, and ingredients. The industry goes far beyond just chromatic lipsticks, perfumes, toiletries, and aromatic smelling soaps and hand creams. Forbes said that the currently USD 532 billion sector is experiencing rapid growth with projections reaching over USD 390 billion globally by 2024.

With the existing presence of intricate factors that drive the supply chain of this industry, an added challenge is that of the customer demand that has grown as well as evolved. It is no longer about a brand with consumer base within a certain country at large, the stakes are higher as we witness a sharp rise in glocalization.

Managing the supply chain cosmetic product requires expertise and meticulous attention to details – from raw material sourcing to processing the product and finally the handover to the customer. However, warehousing plays a major role in making sure that product integrity is maintained and there are no to low loss of product/quality.

Undoubtedly, there is an evident need for efficient warehousing, and end-to-end, tailored fulfillment services to meet the the unique requirements of the cosmetics supply chain industry. With the highly fragile nature of the products churned out by the industry, an efficient warehousing partner with proven experience in handling, storage, packing, and transportation of sensitive items, is the ultimate ingredient of a successful cosmetics supply chain.

The points of consideration for cosmetic warehousing are temperature and humidity control, storage, safe disposal, optimal packing, and security to restrict pilferage. Right from the infrastructure and design layout to packaging and delivery, cosmetic warehouses should be well-equipped in all aspects to accommodate the complex needs of the sector.

In this article we’ve gathered some other important ingredients that make hits for the cosmetic warehousing sector.

Condition monitoring –

This ingredient involves monitoring the various conditions under which the product has been stored at the warehouse. It uses various tools and technologies to achieve this feat, that ensures appropriate moisture/humidity, temperature, light exposure, bumps/shocks and temperature. Even though any of these can damage the cosmetics, they are mostly prone to mishandling, especially during loading/unloading.

Safety –

The fragile nature of cosmetic products necessitates that your warehousing partner follows a strict safety-first approach. With a high risk of pilferage/damage to the product as well as their high monetary value in case of luxury cosmetics, stringent protocols for monitoring, security, storage, handling, and distribution are imperative. For flammable products and those damaged due to light/humidity exposure, special precautions, such as flameproof electrical fittings, and appropriate storage pallets must be in place to mitigate the risks. Creating a safe and risk-free environment is paramount to maintain product integrity and brand reputation.

VAS –

If the warehousing partner provides value added services like sorting, kitting, wrapping, sealing, packing, and shelving – all minor activities but vital in delivering exceptional quality – cosmetic businesses can enhance flexibility, quality, and efficiency in their operations.

Fortified infrastructure –

A warehouse that is used for storing cosmetics needs to be equipped with robust physical as well as technological infrastructure in order to maintain product quality and efficacy. It should have state-of-the-art storage systems, customized solutions, heavy-duty pallet racking system and advanced capabilities for space optimization and line chains. The warehouse also needs to be equipped with adequate temperature/humidity monitoring and control devices for both ingredients as well as finished products.

Skilled personnel –

It is said that the supply chain operations can be half aced even with the availability of a skilled workforce. To execute an excellent infrastructure, a well-trained workforce is essential. Warehouse personnel must be adept at leveraging technology, ensuring safe operations, measuring and weighing products, and employing appropriate marking tools for identification. They should be well-informed about safety procedures and best practices, capable of handling various equipment, and specially trained to handle cosmetic ingredients and finished products.

Technology –

A warehouse used for storing cosmetics should be equipped with automation, advanced machinery, cutting-edge software like Warehouse Management Systems (WMS), and a robust barcode system. These tech-driven warehousing solutions facilitate optimized inventory management, product recognition, demand forecasting, order visibility, real-time updates, and speedy product delivery, thereby enhancing customer satisfaction.

With the aforesaid list of ingredients, there is a high chance that one may stumble on the perfect recipe for successful supply chain operations in the domain of cosmetic products.