Keeping an Eye on the Cosmetic Supply Chain

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Cosmetics and personal beauty products make up a giant global industry. Forbes estimates that the beauty industry rakes in $445 billion dollars a year. The industry must be responsive to fashion as it is a driving force behind many of their consumer’s purchases. However, consumers are looking for more than just fashionable cosmetics these days. Consumers everywhere are becoming increasingly aware of what they are buying and the beauty industry is seeing consumers ask about the following topics.

Being Transparent

Transparency is extremely topical right now. More people want to know where their products are coming from. They want to know where the manufactures are sourcing materials and consumers are trying to understand how the products are made. They also want sustainable and environmentally-friendly ingredients given some cosmetics can play a part in deforestation and lead to environmental damage.

Moreover, the ingredients in cosmetics are being closely critiqued. Consumers are probing for more transparency on what’s inside and what’s going on with the industry as a whole. If you’re in the cosmetic industry and don’t fully understand what your inventory stock is comprised of, then it may be time to have a closer look.

Producing Ethically

Not only do consumers want to know what’s going on with the actual product, but there is a rising awareness surrounding social or ethical concern during production. If products are made using low-cost country sourcing (LCCS), then disparities in labour conditions can cause ethical concerns.

Consumers, media, and companies around the globe are keeping a keen eye on cosmetic production. They are under a close eye as unsustainable production and decreasing raw materials become hot topics, and they are under increasing amounts of pressure to answer to consumer demands.

How can the industry respond?

In order to confront these issues, cosmetic companies need to take drastic measures to show transparency and visibility in their supply chain. Their brand’s reputation is on the line. If cosmetic companies fail to respond to these demands, they could risk losing customers and their niche in the market.

Building better relationships and communication with suppliers across the cosmetic supply chain is fundamental. You can use software to compile all stakeholders and supply chain data. This data is often recorded and presented in several forms, including paper, spreadsheets and enterprise resource planning systems. However, with the right platform you can amalgamate this data and streamline the process. If all members of the supply chain can use the same cloud-based platform, it is easy for all brand owners to know what impact they are having in the overarching supply chain. It can also hold people accountable.

Through this, you can enhance communication, which can enable visibility and traceability. The information can help cosmetic companies manage their inventory stock with more confidence meaning they will they be more informed about the supply chain journey of their inventory stock. This information can be passed onto customers and you can show them your efforts to have a healthy supply chain.

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Melanie - Unleashed Software

Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.

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