Sephora Mind Map - Mind Map

Teamwork & Collaboration - Sephora Life

As we can see in this video, collaboration and teamwork is key to operations and supply chain management at Sephora, whether it is within a team, between teams, or with clients and suppliers.

Inventory Management

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One of Sephora’s major strengths is its inventory management. Instead of keeping the same inventory management system when Sephora’s activity was growing and it was seeing greater profits, the company continuously updated its inventory management tools over the years and tried to make constant improvements. Today, Sephora’s supply chain system has become a reference in the world of retail. When I worked as a consultant for a new cosmetic retail group, I had the opportunity to work with Mr. Jean Luc Jarrin, who was the supply chain director for Sephora France for many. Mr. Jarrin, now a supply chain expert, brought radical changes to the Sephora France supply chain. These changes include the optimization of the weights of upstream purchases, just-in-time delivery, an adapted information system, the sharing of monitoring plates with other customers and a homogenous mode of operation for delivery trucks.

Key Takeaways

Operations Management is crucial in ensuring customer satisfaction

Technology plays a key role in helping Operations Management at Sephora as well as CRM

Employees play a major role in the performance of the company

Today's customer is an omnichannel customer

Lean should be applied as a way of life: maximizing value and minimizing waste

Today, Data is one of the most valuable tools for companies and contributes to major improvements

Customer experience should always be at the core

Companies should always look for ways to improve their operations and supply chain, even when they are performing well

Introduction

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Hello all! My name is Chama Chraibi and I am currently pursuing a Master in Management at ie Business School. One of my courses this semester is Operations and Supply Chain Management, taught by Mr. Felipe Amado Quintana Navarro. The company I have selected to discuss in the Mind Map project for this course is Sephora. I have chosen this company because it has grown into a major retailer who has carved a deep niche in the global beauty market, with a major presence in hundreds of retail centers across more than 20 countries and online. I have also been a loyal customer to the brand for multiple years, and wanted to learn more about it and how it got to the position it holds today. This presentation will look at the operations and supply chain management at Sephora. Enjoy!

Subtema

About the Brand

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"Sephora is owned by LVMH Moët Hennessy Louis Vuitton, the world's leading luxury goods group. The brand has earned its reputation as a beauty trailblazer with its expertise, innovation, and entrepreneurial spirit.The revolutionary beauty-retail concept, founded in France by Dominique Mandonnaud in 1970, is defined by its unique, open-sell environment with an ever-increasing assortment of products from carefully curated brands, featuring indie darlings, emerging favorites, trusted classics, and Sephora’s own, SEPHORA COLLECTION. Today, Sephora is not only the leading retailer of perfume and cosmetics stores in France, but also a powerful beauty presence in countries around the world thanks to its unparalleled assortment of prestige products in every category, unbiased service from experts, interactive shopping environment, and innovation."

31 COUNTRIES

30,000 EMPLOYEES WORLDWIDE

2,000 STORES WORLDWIDE AT END 2014

15,000 DIFFERENT PRODUCTS

HR: Core Values & Corporate Culture

Customer Experience Management

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By offering beauty fans around the world the chance to touch and test the products, Sephora has transformed the customer experience into an exclusive opportunity to indulge, fostering strong relationships with the brand and its products. The House ethos remains unchanged: to present a leading beauty selection and always be on the lookout for what’s new. The brand also relies on the quality of its advice teams. These are professionals in perfumery and cosmetics who, through their energy and enthusiasm, ensure exceptional service, where customer satisfaction is priority number one.

Sustainability

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Sephora implements best practices to ensure sustainability. The group has successfully launched multiple initiatives aimed at reducing their adverse impact on the environment. They are actively taking steps to reduce emissions across their own supply chain and network of stores.

The main concerns of Sephora reflect four of LVMH’s 5 categories of sustainability concerns:

Protecting ecosystems and natural resources

Waste recovery

Reduction in impact of production and transformation of raw materials

Saving energy resources and combating climate change

Eco-design

Product Development & Innovation

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Product development and innovation has always been a major focus of the Sephora Company. They say that beauty is in their DNA. “With its designer stores, innovative “Made in Sephora” products and unique tone, the enterprising brand is never short of surprising new ideas. Its unexpected concepts and non-conformist attitude are also evident both in its boutiques around the world and on its website, which together make Sephora an unparalleled international beauty leader.” For as long as I can remember, Sephora has always been the go-to and the most renowned for beauty products of all kinds. 

Collecting & Interpreting Data for Decision Making - Implementing SPLUNK

Splunk turns machine data into answers. No matter the size or industry of a company, Splunk can provide the answers needed to solve the toughest IT, security and business challenges—with the option to deploy on-premises, in the cloud or via a hybrid approach.

Adapting to the Changing Customer

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https://www.lvmh.com/houses/selective-retailing/sephora/

Sephora successfully understood that their customer is today an omnichannel customer. Through unlocking the incredible potential of Google Analytics, the company was able to gain valuable insights about its customers

70% of customers who visited the retailer's website before heading to a store to make a purchase did so within 24 hours and that more than half of these website visitors were on mobile

Customer Journey Mapping

References

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https://www.lvmh.com/houses/selective-retailing/sephora/https://www.slideshare.net/Splunk/sephora-customer-presentationhttps://rctom.hbs.org/submission/sephora-combining-beauty-and-sustainability/https://www.youtube.com/watch?time_continue=2&v=9DgStODERG4https://www.youtube.com/watch?v=fqkao47kXtghttps://www.youtube.com/watch?v=_8d3noGXt8o

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