As part of its plans to increase globalisation, and following success in the UK and Europe, cosmetics giant Revlon is now rolling out its Oliver Wight Integrated Business Planning (IBP) programme across all regions.
The decision to implement IBP on a global level was taken after seeing spectacular results within the European operation, where inventory was reduced by 50% whilst service levels rose to 98.5%.
The IBP programme has paid dividends in terms of organisational visibility, planning and better integrated processes. "It was huge progress for the organisation. Prior to the programme, processes had been disconnected and not very well documented," says Revlon senior vice president, Simon Worraker.
Revlon is a $1.3bn global business, with market-leading brands in cosmetics, skincare and personal care. It has factories on four continents and raw materials and components are sourced across the world. The fast-paced cosmetics and personal care sectors require speed to market. "In Europe, OTIF for new products improved from 40% to 95%, forecast errors halved and we made massive cuts to our SKUs – they fell from 7,500 to 810," Worraker says.
To ensure a common standard and approach throughout Revlon, IBP has now been included in the corporate objectives and operating framework. "To put IBP at the centre of this document sent a clear message to the worldwide organisation that this was going to happen and it was supported from the top," says Revlon’s Chief Operating Officer, Chris Elshaw. IBP leaders and demand planners have been hired for each region and local implementation is underway with education for regional and national leadership teams.
Change is already taking root; excellent progress against the global organisation’s milestones has been made and the business is forecasting eight quarters ahead. "It is a big challenge and we have set ourselves aggressive goals but Oliver Wight have been there supporting us all the way. They are like a mountain guide, showing you the route to the summit and helping you on the steeper parts," concludes Elshaw.