With the upgrading of domestic consumption level, China's cosmetics market has become the largest emerging market in the world, and the cosmetics industry in China has developed from start-up to large-scale development, from simple and extensive to technological innovation and group management, forming a highly dynamic industrial army. The rapid development of the Internet has driven the upgrading of consumption methods and also impacted the updating and iteration of the cosmetics industry. How to maintain stable development in a fiercely competitive market environment, connect new technologies, manage increasingly complex consumer and product data, reduce business pressure, and improve competitiveness has become the optimization goal of cosmetics enterprises.
Pain points and challenges in the daily cosmetics industry
Starting from the actual needs of the industry, starting with mature industry solutions, sorting out business problems and confirming optimization directions.
Supply chain coordination efficiency is low, material management and control pressure is high.
There are many kinds of cosmetic products and materials, different specifications, inventory data can not be updated in real time, data management is chaotic, supplier coordination efficiency is low, can not provide effective production and marketing decision analysis data for cosmetic enterprises in time.
The competition in the same category is fierce, and the profits of the industry are low.
In recent years, the cosmetics market continues to expand and rapidly expand, but it is not standardized, resulting in low operating threshold of beauty shops, intensified competition in the same category, industry profits continue to decline, how to enhance their competitiveness has become a top priority.
Online and offline marketing data is fragmented, so it is difficult to manage and control.
With the vigorous development of e-commerce, the beauty industry mostly adopts the marketing mode of the combination of online and offline multi-channels, but due to the separation of sales data and the formation of data isolated island, it is difficult to effectively use and regulate the value data, and the management cost is high.
The phenomenon of unsalable goods and hoarding is serious.
Cosmetic industry offline store sales and marketing mode is single, headquarters marketing support radiation ability is weak, the sense of terminal belonging is not strong, products with the same brand multi-category, multi-SPU, difficult to manage, easy to cause unsalable.
How does TransInfo solve management challenges for customers?
Analyze industry characteristics and use mature experience to help enterprises achieve comprehensive digital transformation and enhance profitability.
Overall architecture
Flexible Modeling of Cosmetic Production Workshops
Cosmetic formula management
Total Quality Control and Management
Batch traceability and rapid recall
Dual inventory units and net weight
Shelf life and optimal usage management
Supporting cost accounting for multiple outputs
智能化仓储管理
Overall architecture
TransInfo cosmetics ERP solution, based on SAP ERP, establishes to meet the typical business needs of the daily cosmetics industry, solves the problems of single input-driven multi-output production mode and formula-based standardized management in business end and production process, and helps cosmetic enterprises significantly improve a series of problems such as product cost accounting, production predictability, expansibility, tracking and traceability, at the same time, aiming at sales.
Such as online e-commerce platform, offline retail stores can achieve effective integration and management, significantly enhance the market competitiveness and brand efficiency of cosmetics enterprises. On the basis of realizing the integration of industry and money, cosmetics enterprises can realize multi-dimensional data visualization, provide real-time business value, and give full play to the value of data around the optimization direction of "integration, high efficiency, real-time and visualization". Provide accurate data support for enterprise strategic decision-making.
配方
实现配方管控
Efficient
简化业务流程
可视
企业经营数据可视化
Flexible Modeling of Cosmetic Production Workshops
The plan meets the single input driven multi output production mode, with a fully automated assembly line covering multiple processing stages, where products may be output from the production line at each stage.
Most ERP underlying data models are designed for discrete manufacturing enterprises and are not suitable for complex production site management in fine chemical enterprises, making it difficult to model production lines in the chemical industry. For example, in general, BOM usually supports single output in a pyramid shape, making it difficult to handle the management needs of multiple outputs. For example, different processing stages in the beauty and daily chemical production process may be parallel or serial, making it difficult for traditional processes to simulate complex chemical product production processes.
The TransInfo cosmetics industry ERP solution can flexibly model production sites, support parallel or serial processing stages within the same processing process, and even design more complex mesh structures. Three typical production models can be flexibly configured according to different actual production modes: fully automatic production line, discrete production mode, and mixed production mode.
Process Manufacturing
Designed specifically for process manufacturing
Production Model
Meet multiple production modes
Cosmetic formula management
Support beauty and daily chemical production enterprises with a single input multi output formula structure in the production process, effectively controlling the different categories, attributes, inputs, and outputs of raw materials, semi-finished products, and finished products.
• Based on formula management, fully support the production model of chemical enterprises:
It can support 5 types of inputs: material type, equipment type, labor type, miscellaneous type, and operation specification instruction type.
Three types of outputs can be defined: finished products, by-products, and by-products.
Support the function of expanding formulas, which can combine multiple formulas to form a new processing process, used to define inventory data, simplify and standardize all processes between production, inventory, and cost activities.
In order to collect quality inspection information more comprehensively, a pre-set quality inspection plan is specified for each type of input and output link. With the support of a comprehensive data model, the software can comprehensively collect and produce costs and quality inspection results related to the entire process.
Total Quality Control and Management
The plan provides complete quality control and management functions, covering all aspects of the entire supply chain, including procurement and receipt, warehouse inventory, work in progress, finished product shipment, and returns, to help beauty companies meet relevant policy regulatory compliance.
The "Centralized Quality Control and Inspection" function provides centralized quality control for all application modules. Based on materials and transaction types, enterprises can specify standard quality inspection plans to collect quality inspection results from the entire supply chain when actual business occurs.
In the actual production process, cosmetic companies may need to test raw materials in the early stages of production, process information such as temperature and time in the middle stage, and the attributes of the final product in the final stage. For batch controlled products, the quality test results of the final product can be transformed into the specification attributes of the product.
Batch traceability and rapid recall
TransInfo cosmetics industry ERP software supports batch number management of products, as well as traceability and rapid recall management.
Support batch bidirectional traceability function, which can quickly track all raw materials and finished products, including their batch characteristics and batch numbers. Based on the actual production situation during the production process, quickly locate problematic products, so that the enterprise has the ability to respond quickly.
Through the entire supply chain from supplier procurement, collection of production site information, warehouse storage, to customer shipment, it is possible to flexibly query batch information, and quickly display the business information flow of the entire supply chain based on the receipt of a batch, processing work order, and product batch information. Therefore, bidirectional batch tracking enables fine chemical enterprises to respond to product recalls in just a few minutes, rather than the usual hours or even days.
At the same time, the bidirectional traceability ability of batches allows process manufacturing enterprises to quickly remove problematic products from shelves through customer simulation recalls and certification audits in actual product recall events, greatly reducing customer risks and including the scope of recalls. Taking quick action helps protect the long-term value and reputation of the brand.
Dual inventory units and net weight
Meet the effective management of dual inventory units for finished products at various business nodes in the logistics process for beauty enterprises in processing formula based production and manufacturing.
When assisting enterprises in formula based production and manufacturing, this industry solution supports dual inventory units throughout the entire supply chain, which can track and manage actual weight changes during the processing process.
Support net weight management, helping enterprises conduct transactions with customers and suppliers through actual weight, submit orders, cost accounting, purchase receipt, production, sales shipment, pricing, shipping, and invoicing.
单位
双库存单位
重量
支持净重管理
Shelf life and optimal usage management
Assist beauty companies in managing the shelf life and optimal usage period of materials, and solve various problems encountered in the planning and scheduling of "expired waste" in the supply chain.
• Quality visibility
Support the visibility of shelf life and other information of inventory in inventory. Each batch can track management date related information, such as supplier batch time, batch system creation time, best use date, retest reminder date, expiration date, etc.
• Optimize inventory
Integrate shelf life management into the subsequent business processes of the supply chain, control and meet product availability during the production planning process, and minimize expired and scrapped products. In inventory transactions, priority is given to which batch of materials to use based on their expiration date. Depending on the needs of business scenarios, the inventory adjustment principles of first in, first out (FEFO) and first in, first out (FIFO) can be flexibly adopted.
Supporting cost accounting for multiple outputs
The plan can help beauty companies calculate product costs correctly, especially in order to meet the multi output production model.
The cost accounting solution pays special attention to the following cost accounting points:
Finished products - The cost of finished products is generally the main output, accounting for the majority of the entire cost.
Joint products - The cost of joint products is generally not the main output, but a product with market value.
Byproducts - The finished products produced during the production process by finished products or joint products are called byproducts, which have lower value compared to the first two. Generally, they can be disregarded or deducted from production costs according to standard costs.
Intermediate products - generated in one processing stage of the processing process and automatically transferred to the next processing stage, with costs automatically transferred to the next processing stage and then allocated to subsequent output costs.
智能化仓储管理
The plan has built an intelligent warehousing system, which achieves refined inventory management through docking with equipment such as PDAs, barcode guns, inventory machines, and various transportation equipment, thereby optimizing the procurement process and improving inventory accuracy.
• Innovative integration of barcode labels and RFID technology
Intelligent devices run through the entire logistics process, achieving data-driven and intelligent control of products.
• Establish application scenarios for automated equipment such as three-dimensional shelves/containers
By using information technologies such as the parent vehicle system, four-way shuttle vehicle technology, multi-layer shuttle vehicle technology, ground four-way light 2 heavy AGV technology, cargo to person picking system, WMS (warehouse management system) system, WCS (warehouse control system) system, etc., the solution of "shelf+robot=automated warehouse material storage system" is achieved.
Quickly respond to market changes
Through comprehensive data analysis of sales channels, accurate data decision-making basis is provided for senior management to quickly respond to changes in market demand.
Realize efficient collaboration in the supply chain
Through supply chain collaboration and effective integration with WMS warehousing processing system, inventory turnover rate is improved and customer experience is enhanced.
Comprehensive and efficient control of business
To achieve efficient management and control of the entire business process for beauty enterprises, integrate third-party systems (such as the central platform and OMS system), and improve business processing efficiency.
Omni channel marketing integration
Realize deep integration of online and offline channels and full scene digital management, and establish a digital channel management system for distribution, distribution, and other channels.
Enhance brand influence
Provide effective product profit and loss data analysis for senior management to establish an effective product portfolio and further enhance brand influence.
How does Translnfo focus on serving customers in the daily chemical industry of different scales?
For over 10 years, TransInfo has provided digital transformation services to over 600 enterprises
Founded in 2016, Yatsen E-Commerce has many high growth cosmetics and skin care brands, such as Perfect Diary, Little Ondine, Abbys Choice, Galenic France Corelli, DR.WU Daer Skin (Chinese Mainland business), EVE LOM, Pink Bear Pico Bear, EANTiM One Safe. In 2020, the consumer base of Yatsen E-commerce DTC reached approximately 32.3 million. In November 2020, Yatsen E-commerce officially listed on the New York Stock Exchange, becoming the first Chinese beauty group to land on the US stock market.
ClorisLand is a cosmetics brand under Meichulai (Hangzhou) Cosmetics Co., Ltd; It is a pure skincare brand with the positioning of "Oriental Pure Skincare" and the mission of "Oriental New Patterns", focusing on healing Oriental skin with Oriental flower plants, committed to bringing safety, effectiveness, and pleasure to Eastern women.
Hanhoo Cosmetics Co., Ltd., a famous skincare brand, was founded in 2005. Under its "naturally made" brand concept, Han Hou has entered a rapid upward period of omnichannel growth, deploying 7 effective sales channels nationwide, including more than 15000 exclusive stores, more than 100 distributors, and settling in more than 1850 Watsons, more than 500 large supermarkets and department stores, and establishing mature e-commerce WeChat and TV shopping channels.
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