Case Study: Sephora

Case Study: Sephora

We aimed at joining forces with a professional operator, who would be an experienced e-commerce market player. That is why we have decided to choose Arvato Supply Chain Solutions.

Michał Niechaj
PAC Supply Chain Director at SEPHORA

Delivering a beautiful customer experience: Shaping logistics by robotic solutions

With 52 years expertise in the industry, SEPHORA has admirably created a beauty universe for its customers. Now, together with Arvato, the beauty brand is refining its logistics by implementing smart solutions and automated processes in order to achieve customer fulfillment.

The starting point
SEPHORA had already partnered up with Arvato to manage its retail logistics and e-commerce channels in Germany, Spain and Turkey. Tackling to improve the shopping experience for its customers in Poland and Czech Republic, SEPHORA was searching for a partner who could optimize its logistics systems and help reduce the delivery time. By thoroughly assessing the expertise within the e-commerce market, as well as the knowledge of the beauty industry and considering the successful collaboration in Germany, Spain and Turkey, SEPHORA chose Arvato for implementing the efficient solutions. Warehouse automation and process optimization alongside the growth possibility for extending the warehouse in the future were key requirements from SEPHORA’s perspective.

At the same time, SEPHORA is keen on operating environmentally friendly and running a sustainable business. The highly valued beauty brand sets an example within the industry on how to take environmentally responsible actions through programs such as GOOD FOR, specially tailored for SEPHORA’s clients. The partnership with Arvato is supporting this mindset, hence Arvato places a great importance on shaping client fulfillment in an environmentally aware manner. Consequently, SEPHORA has designated Arvato in the EcoVadis listing as one of the top companies that operates environmentally conscious.

Solution
In June 2021 Arvato Supply Chain Solutions launched a new distribution center in Pruszków, Poland to support SEPHORA’s e-commerce and B2B channel within the Polish and Czech markets. The new 7,000 sqm warehouse provides not only B2C services for Poland and Czech Republic, but also B2B services for Poland, therefore, managing to supply almost 100 retail stores.

One of the innovative solutions adopted in the SEPHORA warehouse, which is efficiently pushing the automatization forward, is the implementation of the self-driving vehicles called Weasels®. Besides automating the transport inside the warehouse, and by doing so, facilitating the processes on the spot, the enforcement brought by the Weasels® has also significantly reduced the delivery time to the SEPHORA’s customers.

In regard of the climate and environment careful modus operandi, Arvato has already started working locally on a sustainable strategy in order to operate cleanly and energy efficiently. Furthermore, as stated in February 2020 by Thomas Rabe - the Chairman & CEO of Bertelsmann - Arvato Supply Chain Solutions will become climate neutral by 2030, by reducing the greenhouse gas as well as the CO2 emissions and using green electricity at all sites, including the new distribution center in Pruszków.

Result
The partnership between SEPHORA and Arvato has successfully improved the logistics for the Polish and Czech markets. Extending the distribution center by adding 2,000 extra sqm has enabled a larger storage space for even more beauty products. Concomitantly, upholding the warehouse automation by implementing the Weasels® has accelerated the in-house processes and so, reduced the delivery time to SEPHORA’s customers.

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Michael Schröder

Michael Schröder

Business Development Manager