L'OREAL Sustainability Challenge –Team Survivors- Executive Summary

Procurement Distribution Sales/Consumer Touch Point Roadmap

Raw materials:
• Plastic resin, masterbatches required for
production of plastic bottles, caps is
transported in plastic bags – these bags
can be reused.
• Single use plastics, cable ties used for
packaging can be avoided
Production
• Identifying mismanaged processes:
Incase of quality deterioration – quality
inspectors verify as per SOP’s. In case of
non conformance – previously produced
stock is wasted.
• Example:
• Injection mould: cap, 48 cavities, cycle
time: 10 second, part weight: 10 grams
• In case of an hourly production check,
previous
48 × 10 × = 172.8 kgs (chances of caps
wasted produced in the previous hour)
• During transportation – there are
high chances of spilling, wastages &
product damage
• Solution – Palletization, creating
bundles and stack configuration
Supply Chain
Transparency & continuous
communication between the corporate
offices and production facilities –
incorporation of Industry 4.0.
It will help improve
1. Forecast changes– halt/increase
production instantaneously
2. Quality- self detecting machinery to
3. Application of Sustainable Supply
Chain Networks for the avoidance
and reduction of waste
• Recyclability messaging and
communications with customers
• Promoting recycling: Certain
privilege slabs can be arranged for
L'Oréal customers when they return
their used products:
 SLAB 1-Consumers can be given
certain coupons or vouchers on
recycling certain units of bottles and
other products
 SLAB 2-Committed consumers can be
given a chance to attend sponsored
events, fashion shows etc.
• Forming Alliances with the business
and the government (Green
Authorities) that create jobs and
commercial activities through
collection, assortment, and sorting
of used plastic leftovers
1. Sustainable design: L'Oréal India can explore alternative packaging styles by
reducing weight & re-designing their packaging to adopt sustainable materials
2. Sustainable Supply Chain: Minimizing plastic packaging used while transportation,
conducting benchmark tests and developing best practices (sustainable raw material
procurement, packaging recovery note guidance, recycling labelling)
3. Sustainable production: L'Oréal India can explore using Post Consumer Resin (PCR)
in their injection and blow moulded products. Explore on environmental impact
assessment with new materials
4. Consumer use: L'Oréal India can gain consumer insights by hosting consumer events,
discounted salon services, fashion shows, school and college events to spread the
sustainability message – common sustainable goals and strategies (awareness)
5. End of life: One center collection point for logistically close areas can be decided.
Plastic waste can be forwarded to 3rd party recycling plants – the regenerate can be
used by L'Oréal packaging manufacturers to save cost & promote sustainability
Linking the above, Industry 4.0: Implementation of industry 4.0 across L'Oréal partners
to incorporate sustainable design, supply chain, production, consumer feedbacks and
end of life. Basically using technology to incorporate the complete product life-cycle in a
sustainable way
Sustainable
Design

Costing
Sustainable
1. Sustainable design: 20% weight reduction can be achieved by re-designing packs, reducing wall thickness. Manufacturing End of Life Supply
new moulds and qualifying to produce with PCR will have a 2 year road map. Direct investments for one pack will be nearly Chain
$1.2-1.3 million. PCR cost to be 10% higher than generally used PP. Consider above example, 48 cavity cap mould – Industry
approximate 500 kg weight saving per day by reducing part weight by 20% 4.0
2. Sustainable production: Using biodegradable PVA (poly-vinyl alcohol) at Rs. 145/kg compared to Polypropylene at Rs.
250/kg can result in 58% cost saving without looking into other factors.

3. Implementing Industry 4.0: Installation of smart systems, vendors with smart machinery, customer integration can be Consumer Sustainable
Use Production
achieved through smart applications deployed on smartphones and computer systems

Presented by: Garima Tiwari, Ruzan Irani & Angad Singh Kalsey. Welingkar Institute of Management (WeSchool) 2019-21. Email: angadkalsey@gmail.com. Contact: 9870141914.