Coty

Arvato understands the needs of the cosmetic industry. For our 2015 certificate, we have once again selected the Arvato warehouse in Düren from more than 40 sites as being the 'COTY Benchmark Warehouse.

Fredrik Händel
Distribution and Warehouse Director, Coty Services and Logistics GmbH

Behind the scenes of a cosmetic giant – The beauty of perfect logistic processes

For a company´s success in the dynamic and demanding world of the beauty and cosmetics industry, perfecting logistics is highly important. The international beauty corporation COTY Inc. has announced its plans for further expansion in one of the most competitive industries with its increasing complexity for domestic and global distribution.

The starting point
For the COTY Prestige sector, the company has searched worldwide for a supplier in order to consolidate multiple warehouses into a central location. Handling direct deliveries to European countries, as well as to additional regional warehouses. Therefore, the cosmetic corporation created branch-specific requirements such as extensive safety standards.

From a customer’s perspective, it was highly important to consider the delivery to branches as well as further logistic centers. Depending on the customer, processes needed to be individually adjusted to fit each end-client’s structure while being throughout supported by IT. Due to this, the significantly increase transparency along the whole supply chain was granted.

Solution
In 2013 Arvato implemented COTY’s warehouse solution. Ever since the company has handled deliveries for the Prestige and Ultraprestige product divisions from the logistics center in North Rhine-Westphalia. Daily deliveries within Europe to Germany, Great Britain, France, Spain and Italy. Furthermore, Arvato supports worldwide distribution to wholesalers in over 70 countries in the Retail Travel Sector, as well as to other COTY regional warehouses.

For deliveries to retailers Arvato handles packaging and labelling according to channel and cross-dock-center requirements. As part of this standard goods flow, this integration includes marketing materials, such as perfume samples.

Arvato has implemented modern technical and organizational methods to fulfill the realization of specific requirements. Thereto belongs the execution of constructional and organizational provisions for the storage and shipment of dangerous goods. Furthermore, was a system for continuous monitoring of the specific warehouse conditions in terms of temperature and atmospheric humidity introduced to the solution. In addition the SAP driven full batch traceability monitors shelf life and shipping using the FEFO method.

Using RF scanners a smooth, fast and paperless picking process is guaranteed. Finally, the installation of conveyor systems an automatic picking, stock sorting and full customer requirements process flow is ensured.

Results
This close cooperation has led to very positive results: The targets agreed upon for KPIs are exceeded at all times. Furthermore, COTY has gained a higher degree of transparency through an extensive reporting measures, resulting in high levels of satisfaction among COTY’s clients.

Our Customer

  • COTY Inc. was founded by perfumer François Coty in Paris in 1904, and has established itself as a global fragrance and cosmetic corporation.
  • Nowadays, COTY represents more than 47 brands in over 40 countries, making it one of the world’s biggest perfume manufacturers.
  • The product portfolio ranges from ultraprestige up to entertainment. COTY’s portfolio includes some of the most desirable beauty brands across four major divisions: fragrance, decorative cosmetics, skin care and body care.

Warehousing Statistics

  • Over 30,000 pallet storage locations
  • Delivery to global customers in > 70 countries
  • Over 100,000 picks per day in peak times
  • > 99.8 % on-time shipments
  • > 99.8 % picking accuracy
  • Peak volumes: > 1,000 outbound palettes per day
  • Peak volumes: > 1,200 inbound palettes per day
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Michael Schröder

Michael Schröder

Business Development Manager