5. Introduction to Oriflame
• Cosmetics company selling direct
• Range of more than 1000 Cosmetic
Products
• Over 450 new Cosmetic Products each Sales by Region 2010
year
• 3.8 million sales consultants
CIS & Baltics, 55%
• 8,800 employees
• Operations in 62 countries of which:
EMEA, 30%
– Franchisees in 13 countries
• Production facilities in Poland, Sweden,
India, China and Russia (approx. 50% in-
house production)
Latin America, 5%
• Group Support Office in Stockholm Asia, 10%
• Finance in Fribourg
• Skin Research Institute in Stockholm
• Research & Development Centre in Dublin
2012-01-11
6. Product Categories
Sales by Category
Fragrances 20%
Skin Care 25%
Colour C. 26% Personal & Hair
Care 20%
Accessories 9%
Skin Care Colour Cosmetics Fragrance Personal & Accessories Wellness
Trust & Competence Professional Up-trader & Emotional & Prestige Booster Hair Care Sales Driver Bringing Beauty from Within
Enhancer Modernizer Energizer
7. The Oriflame Catalogue
• Oriflame’s ”shop window”
• New offers and catalogues every third
week
– 35 languages
• Forceful combination of product and
catalogue development in Stockholm
8. THIS IS ORIFLAME
Our Logotype &
Slogan
Our Vision To be the #1 Beauty Where we’re going
Company Selling Direct
Our Mission To Fulfil Dreams Our reason for being
Our Offer Look Great Make Money Have Fun What we offer
Our Business What we should be
Opportunity best in the world at
concept
Brands & Network World Class People & How we create and
Our Strategy Products Marketing Service Culture build the business
opportunity concept
Our Values & Togetherness, Spirit & Passion How we work
Operating Respect People, Focus on Customers, Demand Quality, together
Principles Seek Simplicity and Cost-efficiency, Pursue Long-term Growth
12. Sourcing Requirements Hierarchy
AQSCIE
A Assured Supply
Responsiveness
Q Quality C Cost
S Service
- II
Innovation
+
Environmental & Ethical
13. CSR focus
• End 2009 Oriflame employed a senior CSR advisor
reporting directly to the CEO
• Objective during fist half 2010 to develop a strategy for
CSR with the Oriflame business
• Projects and next steps will be defined as a result of
strategy investigation
• One of the priorities will be to share experiences with
our key suppliers and see how to move forward
together
Vision: Oriflame wants to work with sustainable suppliers
15. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 5 days from receipt of RFQ
13
• Business award – Work can begin
12
16. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 5 days from receipt of RFQ
13
• Business award – Work can begin
12
• Tooling initiated
12
• Colour-matching initiated with component supplier: 10 working days from receipt of reference
12
17. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 5 days from receipt of RFQ
13
• Business award – Work can begin
12
• Tooling initiated
12
• Colour-matching initiated with component supplier: 10 working days from receipt of reference
12
• Artwork delivered to component supplier
7
18. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 5 days from receipt of RFQ
13
• Business award – Work can begin
12
• Tooling initiated
12
• Colour-matching initiated with component supplier: 10 working days from receipt of reference
12
• Artwork delivered to component supplier
7
• Component specification issued – Production of components can now start!
5
19. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 5 days from receipt of RFQ
13
• Business award – Work can begin
12
• Tooling initiated
12
• Colour-matching initiated with component supplier: 10 working days from receipt of reference
12
• Artwork delivered to component supplier
7
• Component specification issued – Production of components can now start!
5
• First delivery of components into finished product supplier
4
20. Critical deadlines for suppliers - NPD
Months
before
launch
• RFQ received: response time - 7 days from receipt of RFQ
13
• Business award – Work can begin!
12
• Tooling initiated
12
• Colour-matching initiated with component supplier: 10 working days from receipt of reference
12
• Artwork delivered to component supplier
7
• Component specification issued – Production of components can now start!
5
• First delivery of components into finished product supplier
4
• First collection of finished products from supplier –
2
23. Ariba the new sourcing solution for
Purchasing
A web service solution to replace our Excel template RFQs
A Tool to drive system improvement and process alignment
• Direct Spend , NPD
– Emails and messaging to suppliers in one place, automated awards
– One to many easy to use internet web interface rather than excel
• Indirect Spends
Overall Benefits – Sourcing tool with eauction capabilities to maximize savings & increase spend coverage
• Accessories
– Emails and messaging to suppliers in one place, automated awards
• Raw Materials
- Sourcing tool with eauction capabilities to maximize savings & sourcing events
2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
25. Indirect Spends
No Data integration with IFS enabled an earlier start
Supplier self register on-line to be invited for bidding using generic SPQ
3 Templates built
Printing Tender running in Ariba, 10 suppliers invited currently bidding
Conference template, to be used for conference tenders
Mobile tender with the aim of running an eauction
GO LIVE the 28th of April
2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
26. Raw Materials
Data to be integrated to IFS, no import, different set up as Direct Spend, NPD
1 RFP Template to be built
Commodity tender for different sites
e auction as a likely useful option
2012-01-11 Copyright 2011 By Oriflame Cosmetics SA
27. Prior to Ariba situation for Direct Spend
MS Excel MS Outlook
3 RFQ is sent in
Outlook mail
• Many activities were
performed manually
1 Structures 2 Information
are kept in downloaded to • Little time to evaluate and
IFS MS Excel manage RFQ responses
• No transparency, nor
history on events in one
place
7 Structures 6 RFQ responses 5 RFQ responses 4 Suppliers receive
are selected are evaluated in are received in and responds to
and cost is MS Excel mail RFQ
approved • Internal
• External
29. Potential Future situation
2 RFQ’s are • More suppliers can
published in compete for the business
Ariba
1 Structures
are kept in • Reversed auction
PLM functionality
• Help Purchasing to move
away from manual work
• Intermediate interface will
4 RFQ’s are be from IFS to Ariba
evaluated in
Ariba • Long term from PLM
5 Structures 3 Supplier enter
are selected Ariba and respond
and cost is to RFQ
approved • Internal
• External
