IMPROVEMENT OF THE PHASE-IN / PHASE-OUT PROCESS IN …1452804/... · 2020. 7. 7. · PIPO -...

IN DEGREE PROJECT MECHANICAL ENGINEERING,SECOND CYCLE, 30 CREDITS

, STOCKHOLM SWEDEN 2020

IMPROVEMENT OF THE PHASE-IN / PHASE-OUT PROCESS IN COTY CONSUMER BEAUTY DIVISION FRANCE

CHLOE EMELYNE VENTURA GALLO

KTH ROYAL INSTITUTE OF TECHNOLOGYSCHOOL OF INDUSTRIAL ENGINEERING AND MANAGEMENT

ABSTRACT

In order to meet the customer demands and remain competitive in a market

where product life cycles are every day shorter, companies are forced to update

their product portfolios continuously. The process for phasing the products in the

company portfolios (i.e. introducing the new products and deleting the old ones)

is known as the Phase-In/Phase-Out (PIPO) Process or Rollover Process.

In most of the companies, there is a lack of formal processes for planning the

phasings, eliminating the obsolete products and introducing the updated ones.

However, a good planning is a key point to succeed and to create a lower impact

on customers. Moreover, to achieve the best results, a cross-functional

department organization is necessary to share the correct information at the

correct time.

This Degree Project has been carried out at Coty France, in the Demand Planning

Department. This department is responsible for deciding the discontinuation

dates and managing the switches of the products.

This Master Thesis focuses on determining a methodology to share the

information among the departments involved in the PIPO process and creating a

tool to estimate the discontinuation dates.

Clear procedures have been defined for phasing the products and an Excel tool

has been created to calculate the dates. Finally, to validate the final solution

proposed, an analysis of the Customer Service Level has been performed to

confirm that the use of these procedures reduces the impact on customers.

Keywords: Customer Service Level, Discontinuation Date, PIPO Process, Phase-Out

Product, Phase-In Product, Product Portfolio

SAMMANFATTNING

För att möta kundernas krav och förbli konkurrenskraftiga på en marknad där

produktlivscyklerna är kortare varje dag tvingas företag att uppdatera sina

produktportföljer kontinuerligt. Processen för fasering av produkterna i

företagsportföljerna (dvs. introduktion av de nya produkterna och radering av de

gamla) är känd som Phase-In/Phase-Out (PIPO)-processen eller Rollover-

processen.

I de flesta av företagen saknas formella processer för att planera faserna,

eliminera de föråldrade produkterna och introducera de uppdaterade. En bra

planering är dock en nyckelpunkt för att lyckas och skapa en lägre inverkan på

kunderna. För att uppnå bästa resultat krävs dessutom en tvärfunktionell

avdelningsorganisation för att dela rätt information vid rätt tidpunkt.

Detta examensprojekt har genomförts i Coty France, i Demand Planning

Department. Denna avdelning ansvarar för att bestämma avslutningsdatum och

hantera switcharna av produkterna.

Detta examensarbete fokuserar på att bestämma en metod för att dela

informationen mellan de avdelningar som är involverade i PIPO-processen och

skapa ett verktyg för att uppskatta avslutningsdatum.

Tydliga procedurer har definierats för fasning av produkterna och ett Excel-

verktyg har skapats för att beräkna datum. Slutligen, för att validera den

föreslagna slutliga lösningen, har en analys av kundtjänstnivån genomförts för att

bekräfta att användningen av dessa procedurer minskar påverkan på kunderna.

Nyckelord: Kundtjänstnivå, avslutningsdatum, PIPO-process, utfasningsprodukt,

fasinprodukt, produktportfölj

Authors

Chloé Emelyne Ventura Gallon ([email protected])

School of Industrial Engineering and Management, ITM

Master of Production Engineering and Management

KTH Royal Institute of Technology

Place for Project

Coty France

Consumer Beauty Division

75017 Paris, France

Examiner

Daniel Tesfamariam Semere ([email protected])

KTH Royal Institute of Technology

Supervisors

Eleonora Boffa ([email protected]), at KTH Royal Institute of Technology

Anne-Cyrielle Demule ([email protected]), at Coty France

mailto:[email protected]

mailto:[email protected]),%20at

TABLE OF CONTENTS

INTRODUCTION 1

COMPANY DESCRIPTION 1

BACKGROUND 2

PROBLEMS IDENTIFICATION 3

OBJECTIVES 4

LIMITATIONS 4

RESEARCH QUESTIONS 5

STRUCTURE OF THE PROJECT 5

METHODOLOGY 6

DESCRIPTION OF THE DOCUMENTATION PHASE 7

DESCRIPTION OF THE DEVELOPMENT PHASE 7

DESCRIPTION OF THE IMPLEMENTATION PHASE 8

DESCRIPTION OF THE ANALYSIS PHASE 8

DOCUMENTATION PHASE 9

LITERATURE REVIEW 9

COTY INTERNAL KNOWLEDGE 15

DEVELOPMENT PHASE 27

METHODOLOGIES TO CARRY OUT THE PIPO PROCESS 27

TOOL TO CALCULATE THE DISCONTINUATION DATE 31

ENTERPRISE RESOURCE PLANNING SYSTEMS 35

IMPLEMENTATION PHASE 39

IMPROVEMENTS IN THE METHODOLOGIES 41

IMPROVEMENTS IN THE EXCEL TOOL 41

ANALYSIS PHASE AND RESULTS 42

CAUSES IMPACTING THE FILL RATE 42

RESULTS 43

COVID-19 IMPACT 46

CONCLUSIONS AND FUTURE IMPROVEMENTS 47

RESEARCH QUESTIONS 47

CONCLUSION AND FUTURE WORK 48

BIBLIOGRAPHY 50

APPENDIX 1. GANTT DIAGRAM 53

APPENDIX 2. PRODUCT LINES MANAGED DURING THE PIPO PROCESS 54

APPENDIX 3. MARKETING TAB 56

APPENDIX 4. SHARING SWITCH TAB (PART 1) 57

APPENDIX 5. SHARING SWITCH TAB (PART 2) 58

APPENDIX 6. EXAMPLE OF MAIL SENT TO THE OTHER DEPARTMENTS 59

APPENDIX 7. DISCONTINUATION DATE (TAB 1) 60

APPENDIX 8. DISCONTINUATION DATE (TAB 2) 61

APPENDIX 9. CO-PACKING TAB 62

APPENDIX 10. RESULTS OF THE DAILY FILL RATE ANALYSIS 63

LIST OF FIGURES

FIGURE 1: METHODOLOGY PHASES OF THE DEGREE PROJECT. 6

FIGURE 2: % NET REVENUES FOR THE KEY BRANDS OF COTY CONSUMER BEAUTY DIVISION (SOURCE: COTY). 15

FIGURE 3: % NET REVENUES FOR THE KEY CUSTOMERS OF COTY CONSUMER BEAUTY DIVISION (SOURCE: COTY). 16

FIGURE 4: ANTI-THEFT SYSTEM. 17

FIGURE 5: BOM OF A PRODUCT IN NUP FORMAT. 17

FIGURE 6: EXAMPLE OF THE SAME PRODUCT IN NU AND BL FORMAT. 17

FIGURE 7: INFORMATION OF AN ARTICLE OBTAINED VIA WINDEV. 18

FIGURE 8: IRC, DESCRIPTION AND EUROPEAN ARTICLE NUMBER (EAN) OF THE NATURAL BRONZER FOR THE THREE

FORMATS. 19

FIGURE 9: CATEGORIES AND SUBCATEGORIES IN COTY CONSUMER BEAUTY, IN ORANGE IS THE FOCUS OF THE DEGREE

PROJECT. 21

FIGURE 10: PRODUCTS FLOW IN FM LOGISTIC FOR BOURJOIS (LEFT) AND RIMMEL (RIGHT). 22

FIGURE 11: EXAMPLE OF A POS DISPLAY. 24

FIGURE 12: TASKS TO DO BEFORE THE SWITCH. 30

FIGURE 13: TASKS TO DO AFTER THE SWITCH. 30

FIGURE 14: DAILY ACTIONS TO DETECT THE SWITCHES. 40

FIGURE 15: EVOLUTION OF THE FILL RATE FROM FEBRUARY TO MAY, IN RED FIRST DAY IN WHICH TOOL AND

METHODOLOGIES WERE IMPLEMENTED. 44

FIGURE 16: CAUSES IMPACTING THE FILL RATE FROM FEBRUARY TO MAY. 45

LIST OF TABLES

TABLE 1: COTY’S DIVISIONS AND THEIR ICONIC BRANDS. 1

TABLE 2: COTY’S DIVISIONS AND THEIR CUSTOMERS. 2

TABLE 3: EXAMPLE OF HOW TO DECIDE TO CO-PACK AS BL OR NUP. 33

TABLE 4: FILL RATES FROM FEBRUARY TO MAY. 44

TABLE 5: CAUSES CREATING THE SHORTAGES FROM FEBRUARY TO MAY. 45

ACRONYMS

BL - Blister

BOM - Bill of Materials

CSL - Customer Service Level

DC - Distribution Centre

EAN - European Article Number

EDI - Electronic Data Interchanger

ERP - Enterprise Resource Planning

IRC - Internal Reference in Coty

KPI - Key Performance Indicator

MFR - Manugistics Forecast Reporting

MRP - Material Requirement Planning

NU - Nu / Loose item

NUP - Nu protégé / Loose protected

OH - On Hand

OOS - Out of Stock

PIPO - Phase-In/Phase-Out

POS - Point-Of-Sales

PPC - Production Planning and Control

RCA - Root Cause Analysis

SFA - Sales Force Automation

SAP – Systems, Applications and Products

STO - Stock Transport Order

1

Introduction

This section presents the company description, the background, the identified

problems, the objectives and the limitations. Moreover, it includes two research

questions formulated before starting the study and an outline of the Degree

Project.

Company Description

Coty is an American multinational beauty company founded in 1904 in Paris by

François Coty. It is ranked as the 7th most important cosmetic and perfume

company in the world, having as competitor companies such as L'Oréal, Revlon,

Estee Lauder, Unilever, Procter & Gamble, Luxasia, Shiseido and Clarins. Coty is

divided into three divisions (See Table 1):

• Coty Luxury: managing luxurious perfume brands, the most iconic ones are

Chloé, Guccci, Calvin Klein and Hugo Boss.

• Coty Consumer Beauty: managing cosmetic and fragrance brands such as

Rimmel, Bourjois, Adidas and Sally Hansen.

• Coty Professional Beauty: managing hair and nail product brands such as

Wella, Clairol and OPI.

Table 1: Coty’s Divisions and their Iconic Brands.

2

It is important to emphasize that Coty is a wholesaler; it sells the products to

stores and shops in large quantities. Then, these retailers sell smaller quantities

of the products to the end users.

Within the division of Consumer Beauty, the products are mainly sold to

hypermarkets and supermarkets. On the contrary, for the Professional Beauty

Division and Luxury Division, the main customers are beauty salons, luxury stores

and Internet websites (See Table 2).

Table 2: Coty’s Divisions and their Customers.

Background

This Degree Project has been carried out in the Coty Consumer Beauty Division in

the Department of Demand Planning in Paris (France). Regarding the main

activities of the Demand Planning Department, Vlckova et al in [1] address the

following:

• To create the forecasts: based on the information provided by the Trade

Marketing Department, the Marketing Department and the Finance

Department, the Demand Planners forecast the future sales. Sharing the

forecast to the other departments of the company is crucial.

• To review the forecasts: Once per week, the Demand Planners compare

the actual sales with the forecasts. From this comparison, necessary

modifications are performed to adjust the production and to reschedule

3

the shipments. This adjustment is necessary in order to avoid the over-

shipments and under-shipments.

• To analyze the shortages: A Root Cause Analysis (RCA) is carried out every

day to understand the possible reasons of why a product has not been

delivered on time to the customers.

• To analyze the inventories: The available stocks in the different

Distribution Centers (DCs) are evaluated to predict possible shortages or

overstocks.

• To rollout new products: Through the Phase-In/Phase-Out (PIPO) process,

the old products are replaced in the database by the new ones, based on

the available stocks.

• To evaluate the Key Performance Indicators (KPIs): Daily KPIs are

calculated and examined. Their calculations help to fit with the monthly

objectives.

• To manage product software: The software allows forecasting a lot of

items in few seconds and integrate forecast into planning.

Problems Identification

This Degree Project focuses on the PIPO process. The process takes place when a

new product replaces an old one in the product portfolio of a company. In the

particular case of cosmetic products, there are different reasons why an old

product becomes obsolete:

• The chemical recipe

• The Bill of Materials (BOM)

• The packaging of the product

Currently, the Demand Planners oversee the PIPO process. In the current method,

the Phase-In product (new product) is launched when the stock of the Phase-Out

product (old product) is zero. This method has a negative impact on the Customer

Service Level (CSL). In fact, if an old product is ordered when there is no more

stock, customer orders cannot be delivered. In this case, Coty needs to pay finance

penalties to their customers.

4

The lack of communication among the different departments of the company is

also an important drawback of the current process. There is not a control of which

products have become obsolete and replaced by the new ones. A well-defined

procedure to perform the PIPO process can have significant positive results on the

KPIs.

Objectives

The most important for Coty is to achieve a high CSL, to deliver to the customers

the correct quantity of product and at the correct time.

The aim of this Degree Project is to create a new procedure to carry out the PIPO

process, by considering the discontinuation date (date of switch from the old

product to the new product). The new methodology must enhance the

communication and the transfer of information among the different departments

(Marketing, Trade Marketing, E-commerce, Demand Planning, Co-packing, Master

Data and Sales Management). By communicating the correct information at the

correct time to the different departments involved, the shortages can be avoided

and a higher CSL can be achieved.

By using a research and development approach, the new method to carry out the

PIPO process will be applied and tested on two brands of the division (Rimmel and

Bourjois). A tool will be designed to estimate the discontinuation date and to

share it with the other departments.

Limitations

In this project, it is assumed that the discontinuation date depends only on the

forecasts, the scheduled receptions and the available stock. These three previous

parameters depend on other random factors that are difficult to predict such as

supply problems and quality problems. Thus, the discontinuation date is an

estimation of the real discontinuation date. The new method to estimate this

discontinuation date needs to be evaluated in order to verify if it is enough

accurate to achieve a high CSL.

5

Research Questions

Before undertaking this study, the two following research questions have been

formulated:

1. First Research Question: What are the steps to follow, within the Coty

Consumer Beauty Division, in order to provide the right information to the

different departments involved in the PIPO process?

2. Second Research Question: Which is the impact of the new tool to perform

the PIPO process on the customers?

Structure of the Project

Once the problems have been identified and the research questions posed, this

document presents the solution to these problems and answers to these

questions. The document is structured as follows:

Section 2 explains the methodology that has been followed during the project. It

has been divided into four phases: the documentation phase, the development

phase, the implementation phase and the analysis phase. Moreover, this section

includes a schema with a timeline, which presents the time spent on every phase.

All the crucial information needed for carrying out the project is in Section 3. It is

a compilation of information from different scientific papers, Supply Chain books

and internal information provided by the company.

Section 4 presents the procedures established for the PIPO process and the tool

that has been designed to estimate the discontinuation dates. Section 5 highlights

the implementation of the tool and the improvements that have been performed.

Section 6 compiles the CSL Daily Analysis from February to May. Moreover, a Root

Cause Analysis is carried out in order to answer the research questions posed

above.

Finally, Section 7 presents the conclusions and the future recommendations.

6

Methodology

In this section, the methodology followed along the Degree Project is presented.

This project has been divided into four different phases, as shown in Figure 1.

An exhaustive documentation process characterizes the first phase. Two activities

have been performed at the same time: a literature review and a deep learning of

Coty internal knowledge. Furthermore, the current PIPO process has been

analyzed.

The second phase is devoted to the development of the procedures to manage

the PIPO process. This phase also includes the creation of a tool to calculate the

discontinuation dates.

Regarding the Implementation Phase, the procedures and the tool created have

been implemented, tested and improved for the two different brands: Rimmel

and Bourjois.

Finally, the developed tool and methodologies have been assessed through KPIs

during the Analysis Phase.

Figure 1: Methodology Phases of the Degree Project.

This project has been performed in six months. A timeline has been framed and

can be seen in Appendix 1.

Documentation Phase

Development Phase

Implementation Phase

Analysis Phase

7

Description of the Documentation Phase

This stage is divided into the two following parts: Literature Review and Coty

Internal Knowledge.

Literature Review

The Literature Review is one of the most important steps in a project. It is

important to gather a huge amount of information in order to have a deep

understanding of the main topic of the document.

The databases consulted to carry out the searches have been: ScienceDirect.com,

Academia.edu, Researchgate.net and Google Books. On the other hand, the

keywords used in order to find papers related to the main topic have been: Supply

Chain, Customer Service Level, Fill Rate, Product Phase-Out, Product Phase-In and

Rollover Strategies.

Coty Internal Knowledge

Coty has many concepts and processes that are complex to understand. A

significant work has been done to assimilate the internal knowledge of the

company.

All the information required to understand this project has been compiled during

the first month of internship through formation sessions and discussions with

people from different departments. Upon discussions, the current situation has

been analyzed and problems have been clearly highlighted.

Description of the Development Phase

In order to have a global view of the project, several meetings have been

organized with the different actors of the departments involved in the PIPO

process. Those meetings have been necessary to understand the requirements of

this project. With the list of requirements established, new procedures have been

developed.

According to the definition of the new methodologies, a tool has been designed

to calculate an estimation of the discontinuation dates.

8

Description of the Implementation Phase

The created methodologies have been implemented in Rimmel and Bourjois.

Some iterative improvements have been carried out during the implementation

phase in order to obtain better results.

Description of the Analysis Phase

It is essential to analyse the new methodologies and the new designed tool. To

perform this assessment the CSL KPI has been used and a RCA has been

performed.

It is important to understand that the results are not instantaneously appreciated.

In order to have a complete view of the result, a final comparison has been drawn.

9

Documentation Phase

The documentation phase has been carried out in two stages. The first stage was

to gather all the information about the PIPO process to provide a context. The

second stage was based on collecting the essential information of how Coty works

for understanding the following phases of the Degree Project.

Literature Review

The aim of this subsection is to explain the context and achieve a better

understanding on the topic. It provides information about what is the PIPO

process, its causes, the influencing factors, the strategies that can be followed and

the different steps.

Phase-In/Phase-Out Process Definition

In order to meet the customer demands and remain competitive in a market

where product life cycles are shorter, companies are forced to update their

product portfolios [2,4,8,9,11,12].

The phasing process is the process based on the introduction of the Phase-In

product (new product) and the deletion of the Phase-Out Product (old product) in

the product portfolio of a company. This process is known as Rollover Process or

PIPO Process. It has an important effect on companies’ performance and their

related supply chains [9].

Most of the studies related to this topic establish that the introduction of the

Phase-in product is more important than the elimination of the Phase-Out

product. However, in order to have an idea of the complete picture, both, the

Phase-Out product and the Phase-In product need to be considered in the process

[6,11,12].

Regarding the Phase-Out Product, if the production is stopped too early, before

the Phase-In product is launched, it can cause shortages and can have an impact

on customer’s satisfaction. On the contrary, if the production continues for too

long, it can create an excess of products that can generate high remaining stock

levels [3]. The most used performance measure for inventory control is the Fill

Rate (i.e. CSL), which determines the percentage of demand satisfied directly from

the Stock On-Hand (OH) [7].

10

On the other hand, concerning the Phase-In product, if its production starts too

early, inventory-carrying costs can be induced [5].

A successful phasing requires careful planning and coordination. It needs to be

managed in the proper way throughout the supply chain. In order to achieve that,

cross-functional teams are crucial [14,15,16]. Moreover, Production Planning and

Control (PPC) are required for planning the available stock and the discontinuation

dates. PPC also allow planning the production and the necessary raw materials. A

Material Requirement Planning (MRP) is also essential for phasing products.

Reasons of Phasing a Product

There are different reasons why a product can be replaced by a new one in the

product portfolio of a company [5]:

• Government policies and regulations: This situation highlights

government’s effect on product policies. Governments can implement new

policies, which force companies to discontinue their products.

• Problems associated with raw materials: As for example an increase in

price or unavailability of an ingredient.

• Competitiveness: In order to be competitive in the crowded market, it is

important to adopt new technologies, processes, products and solutions.

• Third-party decisions: In the case of a product does not achieve a minimum

of sales, third-party can decide to remove the product from shelves. That

can guide to the deletion of it.

• Operational problems: Such as manufacturing and production problems.

Types of PIPO Processes

Depending on the variables changed in the phasing of a product, the phasing

process can be classified as [2]:

• Soft Phasing: Some variables of the Phase-Out product such as the name,

the price, the packaging, the appearance or the market segment are

changed in order to create the Phase-In product. Depending on the

variables that are modified, the types of changes are classified as:

11

o Facelift Change: It is the most minor change. In order to appeal the

customer a change in the appearance is made.

o Re-merchandising Change: The basic product is maintained but a

modification of the name, the price, the packaging or the promotion

is made in order to widen the market segment.

• Hard Phasing: for this type of phasing the variables that are changed have

a higher impact on the supply chain. The difference between the Phase-

Out product and the Phase-In product can be due to modifications of the

raw materials, manufacturing processes or production processes.

Factors to consider during the PIPO Process

During the planning stage before deciding which strategy to follow, some of the

factors that need to be considered are.

• Stock Level: In order to determine for how long the customers can be

supplied with the Phase-Out product is necessary to perform estimations

of stocks. The stock availability of the Phase-Out product influences the

availability of the Phase-In product [3,4,5,12,13].

• Production Volumes: The main objective during a phasing is to match the

production volumes with the demand forecasts, to avoid the shortages and

the overstock [5,12]. In order to decide how much to produce, it is crucial

to align the demand forecasts with the marketing plans. That is possible

through a cross-functional planning, involving all the departments that play

a role in the phasing process.

• Timing: It is necessary to estimate a discontinuation date in which the

Phase-In product replaces the Phase-Out product [5,12,13].

It is important to remark that when the discontinuation date is established,

it exists the possibility that the date will be postponed or advanced in the

future.

The discontinuation date will be advanced if the Phase-Out product runs

out of stock before the estimated date. In this case, the Phase-In product

will be introduced into the market earlier than expected.

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On the other hand, the discontinuation date will be postponed when there

will be supply or production problems of the Phase-In product or lower

sales.

Phasing Strategies

In the PIPO process there are different strategies that can be followed. These

strategies are divided into two types [8]:

• Primary Strategy: Strategy chosen at the beginning, with the market and

product information of that moment.

• Contingency Strategy: Strategy that the company may adopt when new

information is obtained.

Regarding the state of the Phase-Out product when the Phase-In product is

introduced to the market, the strategies are divided into [11,12]:

• Solo Strategy: The Phase-Out product is already sold out and eliminated

when the Phase-In product is introduced.

• Dual Strategy: The Phase-Out product and the Phase-In product are

provided simultaneously for a while.

Regarding the discontinuation date, the possible strategies to follow are [2,3,5]:

• Phase-Out Immediately Strategy: The Phase-In product immediately

replaces the Phase-Out product. The problem of this strategy is that it does

not allow ridding off the stock of the Phase-Out product.

• Phase-Out Slowly Strategy: This strategy allows ridding off the available

stock of the Phase-Out product and satisfying the Customer Orders

received until the discontinuation date.

• Sell-Out Strategy: The manufacturer sells the stock of the Phase-Out

product to another company in one batch and at significant markdowns.

13

Steps in the PIPO Process

The different steps to perform before substituting a Phase-Out product with a

Phase-In product are:

1. Decision Making Step: This stage consists of examining the performance

of the Phase-Out product, as for example the market growth rate or the

profit margins [3]. If this performance is not as the expected one, the next

stage is planning the elimination of the product and the introduction of the

Phase-In product.

In most of the cases, the decision of phasing out a product is made by the

Marketing and Sales Department [10].

2. Planning Step: During this phase, the phasing strategy is decided. This

strategy depends on the factors explained in subsection 3.1.4. The

decisions that are made during this step are [3,4,11,12]:

1. Decide the discontinuation date, date when the Phase-Out product

will be eliminated from the market and the Phase-In product will be

introduced.

2. Decide when to stop the production of the old Phase-Out product

and how much to produce until the discontinuation date.

3. Decide when to start the production of the Phase-In product and

how much to produce before the introduction.

3. Implementation Step: Once the strategy has been decided, next stage is

the implementation. During this stage, the discontinuation date

established in the last step is maintained, advanced or delayed [3].

4. Completion Step: Finally, when a Phase-In product has replaced the Phase-

Out product the next tasks to perform are [10]:

1. Cancel definitively the production of the Phase-Out product (if it has

not been done before).

2. Remove the Phase-Out product from the product portfolio.

3. Introduce the Phase-In product in the product portfolio.

14

PIPO Process in Coty

During this Degree Project, the phasing reason for all the Phase-Out products has

been due to changes in government Policies and Regulations. The prohibition of

certain chemical ingredients in the cosmetic products, has forced Coty to change

the composition of certain cosmetic products. That leads to the elimination of the

old product and introduction of the new product with a new ingredient

composition.

Due to these modifications on the raw materials, the phasing process has been a

hard process, having a considerable impact on the supply chain. Regarding the

strategy followed, it has been chosen to follow a Solo Strategy/Phase-Out Slowly

Strategy, for ridding off the available stock of the Phase-Out Product. The Phase-

In products have been introduced once the stock of the Phase-Out products was

approximately 0.

Regarding the steps to follow when phasing products, this Degree Project focuses

on the implementation step and completion step. On the other hand, Coty Global,

based on Amsterdam, manages the decision-making step and planning step.

15


All the information mentioned below has been collected through meetings and

discussions with the supervisor in Coty and the people from other departments.

The following subsections describe important aspects of Coty, which are highly

important in order to understand the PIPO process.

Business Status - Key Brands

Within the Coty Consumer Beauty Division there are three different categories:

• Color Cosmetics: with brands such as Bourjois, Rimmel, Sally Hansen and

Miss Sporty

• Fragrance Mass: category of the brands Adidas, Beckham, Beyoncé,

Bourjois, Chanson, Crossman, James Bond, Katy Perry and Vera Wang

• Body Care: only for Adidas

The highest dependent category of the division is Color Cosmetics. Regarding the

brands, the most important brands are Bourjois, Rimmel, Adidas and Sally Hansen.

Figure 2 represents the percentage of the Net Revenues for each of these brands.

Figure 2: % Net Revenues for the Key Brands of Coty Consumer Beauty Division (Source: Coty).

16

Business Status – Key Customers

As it is mentioned in Subsection 1.1, the main customers of Coty Consumer Beauty

Division are the hypermarkets and the supermarkets, generating the 98% of the

Net Revenues. However, there are other customers that represent the other 2%.

These other customers are the retailers such as Amazon, Vente Privée,

Showroomprivé and the Bourjois Boutiques. Figure 3 represents the percentage

of the Net Revenues that generates the most important customers.

Figure 3: % Net Revenues for the Key Customers of Coty Consumer Beauty Division (Source: Coty).

Types of format for a product

In Coty Consumer Beauty Division, there are three different ways of packaging a

product. The three different formats are:

Loose Item in English, Nu in French (NU): Article not packed, directly sold to the

customer with any protection and no anti-theft system.

Loose Protected in English, Nu Protégé in French (NUP): Article composed of the

product in NU format and an anti-theft system (See Figure 4 and Figure 5).

17

Figure 4: Anti-theft system.

Figure 5: BOM of a product in NUP format.

Blister or Clamshell (BL): Composed by the product in NU format and a cardboard,

protected both by a transparent plastic sheet (See Figure 6).

Figure 6: Example of the same product in NU and BL format.

The reason why there are three different formats is that the requirements for

each customer are different. In the hypermarkets and supermarkets such as

Carrefour or Auchan, there are many thefts. These stores offer the products in

18

NUP format or BL format (containing both anti-theft alarms) in order to reduce

the thefts.

On the other hand, other stores such as Galleries Lafayette or Monoprix only offer

the products in NU format because they want to give the appearance of luxury

stores, and an antitheft-system or a plastic sheet worsens the appearance.

Important information about a product

Figure 7 is a screenshot obtained via Windev, software used by Coty, which is

explained in subsection 4.3.

Figure 7: Information of an article obtained via Windev.

By using this software is possible to know the most important information about

a product:

Internal Reference in Coty (IRC): This code is only used by Coty. A same product

has three different IRCs, one for every different type of format. For example, for

the product of Figure 6 the three different IRCs are:

19

Figure 8: IRC, Description and European Article Number (EAN) of the Natural Bronzer for the three formats.

Description (Libellé in French): As it can be observed in Figure 8, the description

gives information about the brand, the format, the product category and the tone.

European Article Number (EAN): This code is not only used by Coty; it is also

used by the customers and it is equal to the barcode number. Every product has

two different EANs, one for the NU and NUP formats and a different one for the

BL format. For example, for the Natural Bronzer of Figure 6, the EAN code for the

NU and NUP is 5012874101627 and for the BL is 3607345332994.

Brand (Marque in French): It specifies the brand of the product. The different

brands in Coty Consumer Beauty Division are Rimmel, Bourjois, Sally Hansen,

Adidas, Miss Sporty, Crossman, Beckham, Chanson, Vera Wang, Beyoncé, James

Bond and Katy Perry.

Category (Catégorie in French): already explained in subsection 3.2.1.

Subcategory (Sous-catégorie in French): For the categories of Color, Fragrance

Mass and Body Care there are different subcategories:

• Color: Face, Lips, Nails, Eyes, Color Sets and Accessories

• Body Care: Deodorant, Shower Gel and Toiletry Sets

• Fragrance Mass : Eau de Toilette and Eau de Parfum

20

Marketing Category (Catégorie Marketing in French): This category specifies

more in detail the type of product for each subcategory:

• Face: Blush, Bronzer, Concealer, Foundation, Multiuse, Powder and Primer

• Lips: Gloss, Liners/Pencils, Lipstick and Liquid Lipstick

• Nails: Nail Care, Nail Polish and Nail Remover

• Eyes: Brows, Eyeliners, Mascaras and Eyes Shadows

• Deodorants: Aerosol and Roll-on

Article type: Specifies if the article is regular or one shot/promo. The regular

articles are the ones that are always in the assortments of the brands. The one

shot/promo products are the ones that are created for special events, for

promotions.

Format: The format for regular articles can be NU, NUP or BL. For the one-shot

articles, the format can be Christmas Sets, Limited Edition and Other Sets.

Price (Tarif temporaire in French): it is the price at which the product is sold to

the customers.

As it has been mentioned before, this Degree Project has been carried out within

the cosmetic brands Rimmel and Bourjois. It is possible to see in Appendix 2 the

product lines managed during the PIPO process.

Figure 9 shows a schema representing categories and subcategories of Consumer

Beauty Division classification of the items. Highlighted in orange are the

categories and subcategories of Rimmel and Bourjois which the Degree project is

focused on.

21

Figure 9: Categories and subcategories in Coty Consumer Beauty, in orange is the focus of the Degree Project.

Fragance MassEau de Toilette

Eau de Parfum

Color

Face

Blush

Foundation

Primer

Powder Rimmel - Stay Matte line

Bronzer Rimmel - Natural Bronzer line

Concealers

Lips

Gloss

Liner/pencils Bourjois - Contour Edition line

Lipstick

Liquid Lipstick

Nails

Nail Care Rimmel - 60 seconds line

Nail Remover

Nail Polish

Eyes

Brow

Eyeliners

Mascara Bourjois- different product lines

Eye Shadows

Color Sets

Accesories

Body Care

Deodorant

Aerosol

Roll-on

Shower Gel

Tolietry Sets

22

Distribution of the Products in Europe

Coty’s products are mainly produced in the United States, China and Europe. From

the production factories, all products in NU format are sent to the main DCs in

Europe. The DCs in Europe are responsible for distributing the NU formats to the

headquarters offices in every European country. The stock sent to each European

market depends on the demand in that country.

In France, the products arrive to the DC Faure-Machet (FM) Logistic in Crépy-en-

Valois, located at 80 km from Paris. This warehouse is divided into three different

areas: CDCCREPY/1006, CDCCREPYP/1001 and DCCREPY/1000.

• CDCCREPY/1006: is the area where the products arrive from the European DCs as NU format or from the co-packer as NUP or BL format.

• CDCCREPYP/1001: CDCRÉPYP area where the products in NU format are prepared to be sent to the outsourcing company Global Concept, in charge of the packaging.

• DCCREPY/1000: space that keeps the three different formats and where the products are prepared to be sent to the customers.

However, as it can be observed in Figure 10, the flow of the articles in FM Logistic

is different for Rimmel and Bourjois:

Figure 10: Products flow in FM Logistic for Bourjois (left) and Rimmel (right).

23

Departments involved during the PIPO process

Different departments of the company are involved in the PIPO Process. In order

to achieve a well-designed PIPO process, an integrated cross-functional plan is

necessary. It is important that every department involved during the PIPO process

becomes aware of their functions and the functions of the counterparts. For that,

it is crucial the existence of a procedure to coordinate the phasing in the best way

along the supply chain.

This subsection specifies the departments involved in the PIPO process and

explains their main functions and responsibilities.

Marketing Department

The Marketing Department is the department that receives the information from

Global Coty (located in Amsterdam) about a new PIPO and communicates it to the

other departments involved in the process. Moreover, the Marketing Department

is responsible for updating the product portfolios. In Coty Consumer Beauty

Division, every brand has three product portfolios, one for each type of format

(NU, NUP and BL).

On the other hand, this department is also responsible for coordinating the

consumer promotions, managing the merchandising and the production of the

Point-Of-Sales (POS) displays.

All the companies use the POS displays in order to increase the demand of the

products. It is based on offering products with special prices in cardboard

structures as the one shown in Figure 11. Offering lower prices and having the

products in the special displays encourage people to buy the products of the

brand [17].

Trade Marketing Department

The Trade Marketing Department is the department in touch directly with the

customers. People working in this department are responsible for negotiating at

the beginning of every Fiscal Year with the customers, which products are going

to be sold in every shop in France. Moreover, they are responsible for

negotiating the promotions. During the negotiations, the trade managers and

24

the customer decide the products and the quantities included in the POS

displays.

Figure 11: Example of a POS display.

Sales Management Department

The Sales Management Department is responsible for processing all the Customer

Orders. In Coty, the Customer Orders can be created in three different ways:

• Manually: For some customers the Customer Orders are created

manually in SAP by the Sales Management Department. These customers

create a list that is sent to the people working in the Department. The list

contains all the EAN codes that they want to order and the quantity.

• Through Electronic Data Interchange (EDI): The Customer Orders created

through this platform reduces the human errors due to the fact it replaces

the mails. The information is sent through secure channels to the Coty’s

Enterprise Resource Planning (ERP) System. When the Sales Management

Department receives the Customer Orders, they handle them, and

customers are informed.

• Through Sales Force Automation (SFA): It is the platform used by workers

from Coty working in the physical stores. The Customer Orders are

created depending on the available stock in the expositors of the store

and sent through secure channels to the Coty’s ERP System.

25

E-commerce Department

In Coty, the E-commerce Department is responsible for creating private online

sales in web pages such as Showroomprivé and Vente Privée. Moreover, they are

responsible for updating the product portfolio of Amazon and managing the web

pages of the cosmetic brands.

Master Data Department

The Master Data Department is responsible for managing the database in the

different ERP systems used in Coty.

During the PIPO process, this department is responsible for creating the Phase-In

codes in the system and once the phasing takes place, deactivating the Phase-Out

code and activating the Phase-In code.

Products in NU and BL format are parameterized in EDI and SFA. On the other

hand, products in NUP format are parameterized only in SFA.

When the Phase-In codes are created in SAP, it is very important that the

parameters EDI and SFA are not activated. If these parameters are activated in the

Phase-In code the Customer Orders would be fulfilled with the new product,

generating high remaining stock of the old product or even shortages in the case

that the Phase-In product would be unavailable.

Moreover, it has been mentioned before that customers order the products

through the EAN code. For a same product in NU and NUP format, the EAN code

is the same. However, Galleries Lafayette, Monoprix and Amazon buys only

products in NU format whereas the other customers buy products in NUP format.

In order to know if the product to deliver to the customer must be a NU format or

a NUP format there is a setting transaction in SAP called VB11, which creates

material determination rules.

The transaction VB11 establishes that every time than a PO is received from

Galeries Lafayette, Monoprix or Amazon the format to deliver is NU. If a different

customer has made the PO, the format to deliver is NUP. VB11 transaction is

crucial in order to deliver the correct product to the customer.

26

Co-packing Department

The Co-packing Department is responsible for creating the Stock Transport Orders

(STOs) from DCCREPY/1000 and CDCCREPY/1006 to CDCCREPYP/1001. The,

products are sent to Global Concept. The STOs are created every Tuesday and are

based on the recommendations of the ERP systems used in the company or

requests made by the Demand Planning Department.

Demand Planning Department

The functions of this department are explained in Section 1.

27

Development Phase

This section presents the methodologies created to carry out the PIPO process

and the tool to calculate the discontinuation dates.

Methodologies to carry out the PIPO process

These methodologies are the result of a brainstorming during meetings organized

with the departments involved in the PIPO process.

The different tasks that every department needs to follow are classified as:

• Tasks to do when a new PIPO is communicated from Coty Global.

• Tasks to do when the Phase-In code is going to replace the Phase-Out code.

Tasks to do when a new PIPO is communicated from Coty Global

The different tasks that need to be carried out when the information of a PIPO is

communicated by Coty Global to Coty France are:

1. Coty Global communicates the new PIPO to the Marketing Department of

Coty France. The Marketing Department fills all the information received in

the product portfolio. They specify that a PIPO is going to take place in the

early future, but the current codes used are still the Phase-Out codes.

2. The Marketing Department shares the PIPO information with the Demand

Planning Department. The information that needs to be communicated is

the old IRC code, the old description, the new IRC code, the new description

and the EAN code (which will be the same after the switch).

3. The Marketing Department asks the Master Data Department to create the

Phase-In codes in the database of the company.

4. The Master Data Department creates the Phase-In codes in SAP. This step

does not include the activation in EDI and SFA (That will be done after the

switch).

28

5. The Master Data Department confirms by mail to the Marketing

Department and the Demand Planning Department that the codes have

been created.

6. The Demand Planning Department estimates the Discontinuation Dates

and shares them with the Trade Marketing Department.

7. The Demand Planning Department and the Trade Marketing Department

check all the Phase-Out codes that are included in the Bill of Materials

(BOM) of the POS’s. Depending on the stock levels, one of the two options

is chosen:

• Option 1: If there is a high stock level of the Phase-Out code, the POS’s

will continue with the Phase-Out code.

• Option 2: If it exists a risk of shortages, the Demand Planning

Department will ask the Master Data to change the Phase-Out code for

the Phase-In code in the BOM of the POS.

Tasks to do in the moment of a switch of codes

The different tasks that need to be completed in the moment that a Phase-In code

replaces a Phase-out code are:

1. The Demand Planning Department sends a mail to the following

departments:

• Master Data Department

• Sales Management Department

• Marketing Department

• Co-packing Department

• E-commerce Department

2. The Master Data Department activates the Phase-In code in EDI and/or SFA

and deactivates the Phase-Out code in EDI and/or SFA. Moreover, if it is a

NU or NUP format, the old correspondence VB11 is deleted and the new one

29

is created. Once that everything is done, a mail is sent to the other

departments to confirm that the codes have been changed in SAP.

3. The Sales Management Department checks if there are backlogs of orders in

the Phase-Out code, if yes, they are switched manually to the Phase-In code.

4. The Marketing Department and the E-commerce Department update the

product portfolios. They replace the Phase-Out code by the Phase-In code.

5. If the code switched is a NUP or a BL, the Co-packing Department ignores all

the future recommendations of JDA for packing that format.

Figure 12 and Figure 13 show the different involved departments and the

performed tasks:

30

Figure 12: Tasks to do before the switch.

Figure 13: Tasks to do after the switch.

Demand Planning Department + Trade Marketing Department

Decide if the Phase-Out codes are replaced by the Phase-In codes for the POS's or not


Estimate the Discontinuation Dates


Create the Phase-In codes in the Database

Marketing Department

Introduce the information in the product portfolios and communicate to the Master Data Department and Demand Planning Department

Copacking Department

Ignore future recommendationf from the ERP system to copack as NUP or BL

Marketing Department and E-commerce DepartmentRemove the Phase-Out code and introduce the Phase-In code in the product

portfolio

Sales Management Department

Check if there are backlog orders in the Phase-Out code and to manage them


Manage the correspondance VB11 and the EDI and SFA


Create a mail communicating the switch to the other departments

31

Tool to calculate the discontinuation date

In Coty France, the information among the departments is shared by Excel files.

Therefore, in order to estimate the discontinuation dates, it has been chosen to

use Excel.

This tool has been experimented on two brands: Rimmel and Bourjois. As Rimmel

and Bourjois activities are not managed by the same people, two separated files

have been created. For both files, the calculation method of the discontinuation

date is the same. The two files have the same structure and they are composed

of different tabs.

Marketing Tab

This tab contains a table with all the information that the Marketing Department

needs. The department can consult all the PIPOs that have taken place (cells in

red) and the future ones (cells in green). Appendix 3 is an example of this table.

This table is updated automatically by Conditional Formatting Formulas every

time that the Demand Planning Department makes a switch and it is linked to

other Excel files used in the company.

Sharing Switch Tab

This tab is used to create a mail template that informs to the other departments

that the switch needs to be processed (See Appendix 4).

Moreover, it is used to check if the Master Data has parameterized correctly the

Phase-Out codes and the Phase-In codes (See Appendix 5). The Excel file has been

linked with the daily SAP extraction Mat_Check_FR to check if the Master Data

has deactivated in EDI and/or SFA the Phase-Out codes and has activated the

Phase-In codes.

Appendix 6 shows a mail example sent to the Marketing Department, Sales

Management Department, the E-commerce Department, the Master Data

Department and the Co-packing Department.

32

Discontinuation Date Tab

This tab is used only by the Demand Planning Department. It is a table of 29

columns, which includes all the important information about the PIPOs and the

discontinuation dates. All the information contained in this tab is represented in

Appendix 7 and Appendix 8.

Appendix 7 shows the first part of the table necessary to calculate the

discontinuation dates.

The first four columns contain information about the product:

• 1st - Format

• 2nd - EAN Code

• 3rd - Description of the Old Code

• 4th - Product Line

For most of the switches the old description and the new description are the

same.

The other eleven columns contain information regarding the Phase-Out code. This

information is the one used to calculate the discontinuation dates. This calculation

is explained more in detail below.

The information given in these columns is:

• 5th - IRC of the Phase-Out Code

• 6th - Available stock in CDCCREPY (1006) and DCCREPY (1000) of the Phase-

Out code, without including the Customer Orders of the customers

(obtained from SkuProj_Weekly Report).


Out code, including the Customer Orders of the customers (obtained from

LIR Report)

• 8th - Weekly average of the forecast of the Phase-Out code for the three

following months (obtained from MFR Extraction Demand Control - Base

Data)

• 9th - Quantity of the Phase-Out code in the next scheduled reception

(obtained from the SAP Extraction ME2L_Planning)

33

• 10th - Total quantity of the Phase-Out code for all the future scheduled

receptions (also obtained from the SAP Extraction ME2L_Planning)

• 11th - Date of the next scheduled reception in Crépy for the Phase-Out code

• 12th - State of the NU and the other format of the packed product.

This column helps to decide the packaging format for the available stock in

Global Concept and Crépy. For example, if the NU and the NUP formats of

one product have already switched to the new Phase-In codes, all the

available stock in Crépy and Global Concept will be packed as BL.

As can be observed in Table 3, the NUP and NU formats have already been

switched (cells in grey). In column “State NU + other co-packed” for the BL

format, it is specified that the switch for the NU and the NUP is effective. In

order to finish all the available stock, the 99 pieces of Nu in Crépy are going

to be packed as BL.

Table 3: Example of how to decide to co-pack as BL or NUP.

Format Old IRC

(Phase Out)

Old IRC

Stock

LIR Stock Old

Code

Forecast week Old

Code

Qty reception

s Old Code

Qty receptions total Old

Code

Date receptions Old Code

State NU + other co-packed

Stock Nu In

Global Concept

Stock Nu in CRÉPY

Comments about stock of

NU

NUP 34015965027 624 594 379 0 - Effect. - Future

19 99 Co-pack 99 as

BL

NU 34788723027 99 99 100 0 - 19 99 Co-pack 99 as

BL

BL 34405126027 132 108 75 0 - Effect. – Effect.

19 99 Co-pack 99 as

BL

• 13th - Stock of NU in Global Concept, the copacker (obtained from the SAP

Extraction MB52)

• 14th - Stock of NU in Crépy (also obtained from the SAP Extraction MB52)

• 15th - Last column contains some comments about the information asked to

the copackers and to the Sales Management Department

Appendix 8 shows the second part of the table, which is the information about

the Phase-In codes and the discontinuation dates. The information provided in

the second part of the table is:

34

• 16th - IRC of the Phase-In Code


In code, without including the Customer Orders of the customers


In code, after the Customer Orders of the customers

• 19th - Weekly average of the forecast of the Phase-In code for the three

following months

• 20th - Quantity of the Phase-In code in the next scheduled reception

• 21st - Total quantity of the Phase-In code for all the future scheduled

receptions

• 22nd - Date of the next scheduled reception in Crépy for the Phase-In code

• 23rd - Number of weeks until the switch, this value is calculated with the

formula (1):

Number of weeks = (LIR Stock Old Code + Total Qty receptions Old

Code) / Forecast Week Old Code

• 24th - Recommended date communicated by Coty Global to the Marketing

Department in which the switch should take place. This date is different to

the real discontinuation date.

One of the main objectives during the PIPO process is to finish the stock of

the Phase-Out codes, which explains why this date is postponed in most of

the cases.

• 25th - Date of the switch obtained via the software JDA using the weekly

projection of the Stock OH of the Phase-Out code (obtained by the extraction

SkuProj_Weekly)

• 26th - Date of the switch calculated through the number of weeks. This

calculation is the result of the formula (2):

Date Out-Of-Stock (OOS) calculation = TODAY () + ([Number of

weeks]]*7)

(1)

(2)

35

• 27th - Discontinuation date shared to the Trade Marketing Department to

decide which strategy to follow regarding the POS’s. This date is used also

by the Demand Planning Department in order to remove the forecasts of the

Phase-Out codes in the ERP Systems and create the forecasts of the Phase-

In codes. The criteria followed with this date is:

o If the estimation date is before the 15th, the discontinuation date will be

the first day of that month

o If the estimation date is after the 15th or the 15th, the discontinuation

date will be the first day of the next month

• 28th – This column indicates to the person responsible for integrating the

forecast in the database if the Discontinuation date is the same one than the

date communicated by Coty Global or not. Filtering the cells that contain

“Change the forecast” in this column the Demand Planner can know directly

all the forecasts that need to be modified in the ERP Systems.

• 29th – Using the Conditional Formatting of Excel and a Macro, when the

person responsible for carrying out the PIPOs writes “SWITCH”, all the

information of the product is copied in the Sharing Switch Tab. After that, all

the line is marked in grey and the state of the cell changes from “SWITCH”

to “DONE”. In that way is easier to identify that the PIPO has taken place.

Co-packing Tab

This tab is used to record all the STOs asked to the Co-packing department in order

to pack from a NU format to NUP and BL formats (See Appendix 9).

Enterprise Resource Planning Systems

The different ERP systems that have been used in order to obtain the needed

information are JDA, Manugistics Forecast Reporting (MFR), SAP and Windev.

JDA

JDA is a software used for visualizing important information about an article. The

reports created with this software and used in the Degree Project have been:

36

• LIR_Report: The information provided in this report is:

o DC

o IRC

o EAN

o Article Type

o Article Subtype

o Article Description

o Category Marketing

o Brand

o Stock OH

o Customer Orders

Knowing this information, it is possible to calculate the available stock for

a product with formula (3):

Available Stock = Stock OH – Customer Orders

That is the stock shown in the 7th and 18th columns in the Discontinuation

Date Tab explained in subsection 4.2.3.

• SKUProj_Weekly: This report is used to visualize the projection of stock OH

of a product per week for the following 12 months. The stock OH of the

Phase-Out codes and Phase-In codes are shown in columns 6th and 17th of

the table in the Discontinuation Date Tab. Moreover, this extraction

provides an estimated date in which the Phase-In code will replace the

Phase-Out code, provided in column 25th of the same table.

MFR

Software used in the companies for MRP and Supply Chain Management. The

extraction obtained from this software is:

• Demand Control – Base Data: Used to obtain the actuals (quantity of

products sold) of the last three months and the forecasts for the next three

months.

The forecasts are provided in the 8th and 19th column in the

Discontinuation Date Tab.

(3)

37

SAP

This ERP system provides a view of the available stock, blocked stock, production

capacity, Customer Orders, STOSs and establishes a connection to the

stakeholders (co-packers) and Coty’s customers.

Two different ways have been utilized to obtain the information provided by this

software:

• Using the automatic extractions that are generated during the early

morning, every day at 5am.

• Consulting the software every time that a PIPO is going to take place.

For the first case, the extractions that have been used are:

• ME2L_Planning: provides information about the scheduled receptions,

providing the arrival date and the quantity.

• MB52: provides information about the available stock in CDCCREPY/1006,

DCCREPY/1000 and Global Concept.

• Mat_Check_FR: provides information about the status of an article. With

this extraction it is possible to know if the EDI or SFA of an article is active

or non-active.

For the second case, the transactions that have been used are:

• MMBE - Stock overview: It gives information about the unrestricted

quantity, the scheduled receptions, the blocked quantity, the stock send to

the co-packer, the stock transferred to other DCs, the POS and the stock

under quality controls.

• MD04 - Stock/requirements List: This transaction shows the product

receptions, the Customer Orders, the STOs and the stock of a product.

• MB51 - Material document list: It provides the movements in the past of

a product, showing the past receptions, Customer Orders, STOs and

shipments.

• VB13 - Create Material Substitution: This transaction is used in order to

check that the correspondence VB11 is well parameterized.

38

Windev

It is an internal software used in Coty where it is possible to find the important

information about an article such as the actuals, the forecasts, the POS’s and

information as the one explained in the Subsection 3.2.4

39


This section describes how the methodologies and the tool described in the

previous section have been implemented.

The different daily actions performed by the Demand Planning Department are:

1. Every morning before 9am the LIR Report is generated.

2. This LIR Report is linked to the Excel file created for the calculation of the

discontinuation date. In this way, it is possible to know the Customer Orders

of the previous day for every code and the available stock.

3. The next step is to check the stock coverage for every code.

Using the Conditional Formatting in the Excel file, when the stock coverage is

less than 4 weeks (Column 23rd), the line is colored in orange. That warns the

person responsible for carrying out the PIPOs that the Phase-In code is going

to replace the Phase-out code in the following weeks.

The alert is created in the moment that the stock coverage is less than 4 weeks

in order to have enough time to react and to take the necessary actions.

4. The next step depends on the value of the stock coverage.

o If it is between 1 and 4 weeks, it is necessary to check if there is stock

of the Phase-In code in Crépy. If there is not enough stock, depending

on the format, the actions to conduct are:

▪ NUP or BL format: The person responsible for the PIPO process

in the Demand Planning Department asks the Co-packing

Department to pack the NU format into BL/NUP format.

▪ NU: The Demand Planning Department asks stock of NU

products to the central European DCs.

o If it is less than 1 week, the switch is made and shared to the other

departments.

Figure 14 shows the different steps explained above.

40

Figure 14: Daily actions to detect the switches.

Generate the LIR Report

Link the LIR Report to the Excel File

Examine the stock coverage

More than 4 weeks

No actions

Between 1-4 weeks

Check if there is stock of the Phase-In code

If there is not enough stock, depending on

the format

NU: ask to the European DCs to send

the product in NU format

NUP/BL: Ask to packed the product in NU

format

If there is enough stock, no actions

Less than 1 week

Carry out the switch and share it to the other departments

41

Improvements in the methodologies

The two methodologies presented in the last section, are the definitive ones.

However, during the implementation phase errors were detected and they have

been modified.

In the first versions, the E-commerce department was not considered. This

department is responsible for updating the product portfolio of Amazon and the

brand web pages. Every time that a PIPO was taking place; the IRC codes in these

product portfolios were not updated. This caused shortages.

In order to correct this problem, the E-commerce department was added and

considered in the mail sent to all the departments involved.

Improvements in the Excel tool

The Excel file explained in subsection 4.2 is the final version. Nevertheless, during

the implementation of the Excel file some deficiencies were identified. Some

modifications have been carried out in order to arrange them.

In the first versions, the number of weeks established for creating the alert was 2

weeks. However, due to the lead times to pack the products as NUP and BL

formats or receive the NU products from the European DCs, this duration was

prolonged to 4 weeks.

Another important modification was the consideration of the stock of NU in Crépy

and in Global Concept. If this stock would not be considered, once all the PIPOs

would have been performed, the stock levels in these two warehouses would be

too high. That would generate high inventory costs and the costs of loss of sales.

Finally, in the early stages, the stock used, as reference was the stock obtained via

the SkuProj_Weekly extraction in JDA (Column 6th). This stock does not include the

Customer Orders. That slows down the switch 2-3 days and creates shortages. In

the moment of the switch, the Customer Orders have been already processed and

it is too late for the Sales Management Department to change the backlog orders

to the Phase-In codes. To solve this problem, Column 7th was added. This column

obtained from the LIR Report, provides the available stock after the Customer

Orders.

42

Analysis Phase and Results

The most important requirement of this Degree Project is ensuring the lowest

impact on customers when phasing products.

The KPI used in Coty to measure customer´s satisfaction is the Fill Rate, which is

the same than the CSL. This KPI represents the part of customer demand that is

met through immediate stock availability, without backorders or shortages.

This section presents the Daily Fill Rates for the Phase-Out products that have

switched from February to May. Moreover, it classifies the possible reasons why

products have not been delivered to the customers at the correct time or at the

correct quantity.

Causes impacting the Fill Rate

The different causes impacting the CSL identified during the Daily Fill Rate analysis

are:

• Codes not switched on time: This situation occurs when the Phase-In

product replaces the Phase-Out product later than it should.

It is very important that the Phase-In product replaces the Phase-Out

product at the correct moment. If that does not happen, as there is not

more available stock of the Phase-Out code, the Customer Orders are not

be fulfilled and that creates shortages.

• Backlog orders not switched: This happens when the Phase-In product has

replaced a Phase-Out product, but the backlog orders have not been

switched to the new code by the Sales Management Department in SAP.

When there is no more stock of the Phase-Out product and the Phase-In

product is launched, it is very important to inform the Sales Management

Department. It is possible to still have order backlogs for the Phase-Out

product in the ERP system (SAP for Coty). If the Demand Planning

Department does not ask to the Sales Management to change manually all

the Customer Orders in the ERP system from the Phase-Out product to the

Phase-In product Customer Orders will not be fulfilled.

• Parameterization Problems: As it has been explained in subsection 3.2.6,

every time that a PIPO occurs, some parameters of a code need to be

43

activated and some deactivated. The parameterization problems come

about when a code is not well parameterized in EDI/SFA or when the

correspondence VB11 is not well done.

Regarding the EDI and SFA, if a code has not these values well

parameterized, the Customer Orders of the customers cannot be

processed in the ERP system and they are rejected, impacting the CSL.

On the other hand, the other possibility is that the correspondence VB11

is not well done and the link NU – NUP is not the good one. It can occur to

deliver to the customer the wrong format or to not been able to meet the

customer demands because the link is done with a Phase-Out code in which

there is not more stock.

Results

All the detailed data used in this subsection can be consulted in Appendix 10. It is

important to remark that the data collected are for the Phase-Out products that

have been replaced by the Phase-In products. If a PIPO has already taken place

and there are shortages in the Phase-In product it is due to global supply

problems. It has been considered that these supply problems cannot be

controlled and are out of the scope of the Demand Planning Department.

The aim of this subsection is to assess the methodologies and the tool created

during this Degree Project and to verify if they have improved the PIPO process

and created a positive impact on the customers.

Figure 15 represents the Daily Fill Rate from the 1st of February to the 19th of May.

The formula (4) used to calculate the Fill Rate is:

Fill Rate (%) = (𝑂𝑟𝑑𝑒𝑟𝑒𝑑 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦 – 𝑀𝑖𝑠𝑠𝑒𝑑 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦)

𝑂𝑟𝑑𝑒𝑟𝑒𝑑 𝑄𝑢𝑎𝑛𝑡𝑖𝑡𝑦∗ 100

(4)

44

Figure 15: Evolution of the Fill Rate from February to May, in red first day in which tool and

methodologies were implemented.

As it can be observed in the graph of Figure 15 and in the data compiled in

Appendix 10, the Fill Rate has increased along the process.

Table 4: Fill Rates from February to May.

Month Fill Rate

February 82,7%

March 96,9%

April 98,1%

May 99,5%

Considering that the goal of the Demand Planning Department in Coty Consumer

Beauty is to obtain a Fill Rate (for all the brands of the division) higher than 92 %,

it can be assured that the Fill Rate achieved when discontinuing products during

the PIPO process is acceptable.

In Figure 15, between the 12th of February (first day of implementation) and the

25th of February, the Fill Rate experienced important fluctuations. This period

represents the time that took to the other departments to understand perfectly

how to manage the PIPOs.

Regarding the causes impacting the Fill Rate, through a RCA the following results

shown in Table 5 and Figure 16 have been obtained.

45

Table 5: Causes creating the shortages from February to May.

Causes Shortages

Codes not switched on time 621

Backlog orders not switched 429

Parameterization problems 1569

2619

It can be observed that the cause creating the highest impact on the Fill Rate and

creating most of the shortages is the one due to problems in the parameterization

of codes. The second cause is when products are not switched on time. Finally,

the backlog orders that have not been switched on SAP to be fulfilled with the

Phase-In product represent the cause with the lowest impact on the process.

Figure 16: Causes impacting the Fill Rate from February to May.

It would have been interesting to compare the results with the months before

February. However, due to the lack of previous PIPO processes, all this data was

not collected. Thus, it was not possible to draw this comparison.

24%

16%60%

Codes not switched on time

Backlog orders not switched

Parameterization problems

46

COVID-19 Impact

It is important to remark that the results obtained in this Degree Project are

significantly impacted by the health and economic crisis of the COVID-19.

As it can be observed in the tables of Appendix 10, due to the lockdown from mid-

March to end-May lived in France, sales have been drastically reduced. The French

Government has established a state of alarm, forcing all non-primary stores to

close during these three months.

As it has been mentioned before, the main customers of Coty Consumer Beauty

Division are the hypermarkets and supermarkets. However, even if they have

been still operating during the lockdown, the priority has been the food supply.

This has created an immeasurable impact in other sectors, such as the cosmetic

one.

However, it can be confirmed that the tool and procedures created in this Degree

Project have a positive impact on customers and reduces the penalties that Coty

needs to pay every time that a Customer Order is not fulfilled.

47

Conclusions and Future Improvements

This section provides the conclusions obtained from the discussions of the results

of the last section. Moreover, it is devoted to answer the Research Questions

posed in Section 1. Finally, future recommendations are proposed.

Research Questions

The answers of the Research Questions posed in the first stage of this Degree

Project are:

First Research Question: What are the steps to follow within the Coty Consumer

Beauty Division to provide the right information to the different departments

involved during the PIPO process?

This research question is answered in subsection 4.1. This subsection explains the

different actions that every department needs to perform during the PIPO

process. There are two different procedures to follow.

One of the procedures presented needs to be followed every time that Coty

Consumer Beauty Division receives the information provided by Coty Global of a

new PIPO.

The second procedure needs to be adopted at the moment that products need to

be switched in the database because there is not more stock of the Phase-Out

product.

Second Research Question: Which is the impact of the new tool to perform the

PIPO process on the customers?

The second research question has been defended in subsection 6.2. The impact

of the tool on the customer is highly positive. In order to measure the impact on

customer, the KPI Fill Rate/CSL has been used.

The CSL has increased significantly over the time. With the new tool created to

manage the PIPOs, this KPI has been increased from 82,7% in February to 99,5 %

in May.

48

Conclusion and Future Work

To conclude, it can be confirmed that the methodologies and the Excel tool

created to manage the PIPO process in Coty Consumer Beauty Division have a

positive impact on the customer satisfaction. Moreover, they have reduced the

penalties that Coty needs to pay every time that customer demands cannot be

fulfilled, creating also a positive economic impact.

The tool created to calculate the discontinuation dates for the future PIPOs has

allowed anticipating the receptions of NU products, NUP products and BL

products. Potential shortages have been avoided.

Moreover, with the Excel file it has been possible to detect all the backlogs orders

that could not be fulfilled with the Phase-Out products and mails have been sent

to the Sales Management Departments asking for changing in SAP the orders to

the Phase-In products.

Regarding the problems with the parameterization of codes, one meeting has

been carried out at the end of this Degree Project to understand the reason why

the Master Data Department had difficulties managing the PIPOs.

The Master Data Department receives several mails every day and sometimes

some of them remain unread. In order to avoid that and to perform the

parameterization of codes the same day that a PIPO is communicated to the other

departments, it has been decided as future recommendation to create a new

Excel file to exchange the correct information with the Master Data Department.

The main objective of this new tool would be to avoid the problems linked with

the activation/deactivation of products in SAP and the problems linked with the

correspondences VB11.

Using macros, a mail would be sent every time that new information is added in

this file by the Demand Planning Department. At the end of the day the Master

Data Department could access to that file and find all the information that it is

necessary to know to parameterize the codes in SAP. Once that the

parameterization would be done, the Master Data Department would save and

close the file and a mail would be sent automatically to the Demand Planning

Department confirming that the PIPOs have been done.

49

On the other hand, other future recommendation to continue this Degree would

be the creation of a SAP extraction every morning, which would include the

available stock in DCCREPY and CDCCREPY after the Customer Orders.

Currently, it does not exist any extraction of SAP with which is possible to know

the real available stock in FM Logistics excluding the Customer Orders. The

creation of this new extraction could be carried out by the IT Department and

would avoid the generation every morning of the LIR Report.

Finally, another future improvement could be the creation of another SAP

extraction to check all the NU products and their linked NUP products.

With this new extraction it would be possible to check if the correspondences

VB11 are well done every time that a PIPO would take place. As it has been

explained before in this document, the only way to check the link of a NU product

with a NUP product right now is with the manual transaction in SAP called VB13.

This checking process takes time because it needs to be done code by code. This

new extraction could reduce the parameterization errors due to problems in the

correspondence VB11 and would save time to the demand planners.

50

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53

Appendix 1. Gantt Diagram

W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W17 W18 W19 W20 W21 W22 W23 W24 W25 W26 W27

Documentation Phase

Literature Review


Development phase

Brainstorming with different departments

Definition of the methodologies

Creation of the tool


Implementation

Improvements

Analysis Phase

Daily Analysis

Final Analysis

Report

Degree Project Report

PPT Presentation

Analysis

Report

Implementation

Documentation

Development

JuneJanuary February March April May

54

Appendix 2. Product Lines managed during the PIPO Process

RIMMEL

PRODUCT LINE NUMBER OF PHASINGS PICTURE

60 seconds 62 Phasings

Stay Matte 16 Phasings

Natural Bronzer 10 Phasings

BOURJOIS

PRODUCT LINE NUMBER OF PIPOS PICTURE

Contour Edition 22 Phasings

55

BJS Volume

Glamour M 3 Phasings

BJS Volume

Glamour P 3 Phasings

BJS Volume Reveal 5 Phasings

BJS Volume

Clubbing 2 Phasings

BJS Volume

Glamour 2 Phasings

56

Appendix 3. Marketing Tab

Non-Active

Active

EAN NU/NUP OLD IRC NU NEW IRC NU State NU Date

switch NU OLD IRC NUP

NEW IRC NUP

State NUP

Date switch NUP

EAN BL OLD IRC BL NEW IRC BL State BL Date switch BL

3614228081160 34778209706 99350051345 Stopped 34850788706 99350062239 Future

3614228081184 34778209708 99350051363 Stopped 34850788708 99350062233 Future 3614228160674 34850789708 99350062275 Future

3614228081191 34778209709 99350051357 Stopped 34850788709 99350062232 Future

3614228081269 34778209716 99350051362 Stopped 34850788716 99350062250 Future

3614220616858 34778209315 99350051338 Switched 11/02/2020 34026600315 99350078367 Stopped

3614223593743 34774403202 99350051383 Stopped 34440004202 Stopped Future

3614228081221 34778209712 99350051366 Future 34850788712 99350062251 Future 3614228160513 34850789712 99350062270 Future

3614228081320 34778209722 99350051368 Future 34850788722 99350062252 Switched 03/03/2020 3614228160971 34850789722 99350062272 Future


3614220616827 34774403300 99350051320 Switched 11/03/2020 34890814300 99350062230 Switched 11/02/2020 3607343849746 34668849300 99350062262 Future





3614224076528 34774403901 99350051387 Future 34440004901 99350062254 Future

3614224076511 34774403900 99350051389 Future 34440004900 99350062258 Switched 11/02/2020 3614224211509 34025318900 99350062266 Switched 05/03/2020

3614228081290 34778209719 99350051347 Future 34850788719 99350062261 Future

3614223593811 34774403811 99350051393 Stopped 34440004811 99350062256 Switched 24/02/2020


3614220616797 34778209262 99350051333 Stopped 34440004262 99350062228 Future 3614226629593 34890938262 99350062276 Future


3614220616896 34778209323 99350051319 Stopped 34440004323 99350062231 Future


3614220617022 34778209430 99350051343 Stopped 34440004430 99350062229 Future

57

Appendix 4. Sharing Switch Tab (Part 1)

DATE OF SWITCH

FORMAT EAN VB11 - Delete Correspondence VB11 - Create Correspondence COMMENT- Master Data

10/02/2020 NU 3614220616858 34778209315 NU 99350078367 NUP 99350051338 NU 99350078367 NUP EDI and SFA active in New Code and non-active in Old Code


10/02/2020 NUP 3614220616827 34774403300 NU 34890814300 NUP 34774403300 NU 99350062230 NUP SFA active in New Code and non-active in Old Code




10/02/2020 BL 3607345332994 34405126022 BL - - 99350062225 BL - - EDI and SFA active in New Code and non-active in Old Code


























58

Appendix 5. Sharing Switch Tab (Part 2)

MASTER DATA

DATE OF SWITCH

FORMAT EAN VB11 – Delete

Correspondence VB11 – Create

Correspondence EDI Old

IRC EDI New

IRC EDI Check

Master Data SFA Old IRC

SFA New IRC

SFA Check Master Data

VB11 DONE

10/02/2020 NU 3614220616858 34778209315 99350078367 99350051338 99350078367 Non-Active Active Non-Active Active YES


10/02/2020 NUP 3614220616827 34774403300 34890814300 34774403300 99350062230 - - Non-Active Active YES




10/02/2020 BL 3607345332994 34405126022 - 99350062225 - Non-Active Active Non-Active Active -



14/02/2020 NU 3607345064529 34788218003 34015983003 99350054616 34015983003 Non-Active Active Non-Active Active NO























59

Appendix 6. Example of mail sent to the other departments

Hi,

These are the PIPOs of today:

Could you…?:

• Master Data : o Delete links NU -> NUP for all the clients and to create the new ones o Check for the NU that EDI + SFA are active for the new code and non-active for the old o Check for the NUP that SFA is active for the new code and non-active for the old code

• Marketing and E-commerce: o Upload information in Excel Product Portfolios

• Sales Management: o Check if there are backlogs and change to new code

Regards,

Chloé Ventura

EAN VB11 - Delete Correspondence VB11 - Create Correspondence DESCRIPTION PRODUCT

LINE COMENTS - Master Data

5012874173044 34788723027 NU 34015965027 NUP 99350054634 NU 34015965027 NUP RIMMEL NU BRONZER NATURAL BRONZER 027 SUN

DANCE 14G

NATURAL

BRONZER

EDI and SFA active in New Code and non-

active in Old Code

3614228081320 34778209722 NU 34850788722 NUP 34778209722 NU 99350062252 NUP RIMMEL NU PROTEGE VAO 60 SECONDS SUPER

SHINE COLOUR BLOCK 722 ALL NAILS ON DECK 8ML

60

SECONDS

SFA active in New Code and non-active in

Old Code

60

Appendix 7. Discontinuation Date (Tab 1)

Format EAN Description Product

Line Old IRC (Phase

Out)

Old IRC

Stock

LIR Stock Old

Code

Forecast week

Old Code

Qty reception Old Code

Total Qty reception Old Code

Date reception Old Code

State NU + packed

Stock NU in Global Concept

Stock NU in CRÉPY

Comments about stock of NU

Loose protected

5012874101627 RIMMEL NU PROTEGE BRONZER NATURAL BRONZER 022 SUN BRONZE 14G

NATURAL BRONZER

34015965022 1992 1560 285 0 - Effect. - Effect.

14 30 Switch orders old code, done

Loose protected

5012874173044 RIMMEL NU PROTEGE BRONZER NATURAL BRONZER 027 SUN DANCE 14G

NATURAL BRONZER

34015965027 624 594 379 0 - Effect. - Future

19 99 Switch orders old code, done. 99 as BL

Loose protected

5012874106677 RIMMEL NU PROTEGE BRONZER NATURAL BRONZER 025 SUNGLOW 14G

NATURAL BRONZER

34891003025 2436 2262 281 0 - Stop - 0 0 Ok, no actions

Tester 5012874101689 R POUDRE TST NATBRONZ 022 SUNBRONZE 14GR

NATURAL BRONZER

34788725022 42 41 3 0 - - 0 0 Ok, no actions

Tester 5012874101672 R POUDRE TST NATBRONZ 021 SUNLIGHT 14GR

NATURAL BRONZER

34788725021 51 50 4 0 - - 0 0 Ok, no actions

Tester 5012874173051 R POUDRE TST NATBRONZ 027 SUNDANCE 14GR

NATURAL BRONZER

34788725027 24 23 3 0 - - 0 0 Ok, no actions

Loose item 5012874173044 RIMMEL NU BRONZER NATURAL BRONZER 027 SUN DANCE 14G

NATURAL BRONZER

34788723027 99 99 100 0 - - 19 99 99 as BL

Blister 3607345332994 RIMMEL BLISTER BRONZER NATURAL BRONZER 022 SUN BRONZE 14G

NATURAL BRONZER

34405126022 0 0 148 0 - Effect. - Effect.

14 30 Ok, no actions

Loose protected

3614224525125 RIMMEL OAP PAL MAGNIFEYES 002 14,16G MAGNIFIC

EYES 34560897002 990 762 121 0 - Effect. - 0 0

504 scheduled reception as NUP

Blister 3607345333007 RIMMEL BLISTER BRONZER NATURAL BRONZER 021 SUN LIGHT 14G

NATURAL BRONZER

34405126021 6 6 224 0 - Effect. - Effect.

25 0 Ok, no actions

Blister 3607340838514 RIMMEL BLISTER BRONZER NATURAL BRONZER 027 SUN DANCE 14G

NATURAL BRONZER

34405126027 132 108 75 0 - Effect. - Effect.

19 99 99 as BL

Loose protected

3607345064505 RIMMEL NU PROTEGE POUDRE MATIFIANTE STAY MATTE 001 TRANSPARENT 14G

STAY MATTE

34015983001 72 -6 525 486 486 27.03.20

20 Effect. - Future

576 404 Switch orders old code, soon, 486 27/03. Pack 809 as NUP

Loose protected

3607345064529 RIMMEL NU PROTEGE POUDRE MATIFIANTE STAY MATTE 003 PEACH GLOW 14G

STAY MATTE

34015983003 18 0 587 1212 1212 27.03.20

20 Effect. - Future

1273 0 Switch orders old code, soon, 1212 27/03.

Loose protected

3607345064543 RIMMEL NU PROTEGE POUDRE MATIFIANTE STAY MATTE 005 SILKY BEIGE 14G

STAY MATTE

34015983005 30 30 630 0 0 - Effect. - Effect.

23 0 Ok, no actions

Loose protected

3607345064567 RIMMEL NU PROTEGE POUDRE MATIFIANTE STAY MATTE 007 MOHAIR 14G

STAY MATTE

34015983007 12 0 629 0 0 - Effect. - Future

48 1092 Pack 1092 as NUP

Loose item 3607345064529 RIMMEL NU POUDRE MATIFIANTE STAY MATTE 003 PEACH GLOW 14G

STAY MATTE

34788218003 0 0 62 0 0 - - 1273 0 Ok, no actions

Loose item 3607345064567 RIMMEL NU POUDRE MATIFIANTE STAY MATTE 007 MOHAIR 14G

STAY MATTE

34788218007 1011 1092 94 0 0 - - 48 1092 Pack 1092 as NUP

Loose item 3607345064505 RIMMEL NU POUDRE MATIFIANTE STAY MATTE 001 TRANSPARENT 14G

STAY MATTE

34788218001 809 404 109 0 0 - - 576 404 Pack 809 as NUP

Blister 3607340838859 RIMMEL BLISTER POUDRE MATIFIANTE STAY MATTE 001 TRANSPARENT 14G

STAY MATTE

34888967001 672 384 288 0 0 - Effect. - Effect.

576 404 Pack 809 as NUP

61

Appendix 8. Discontinuation Date (Tab 2)

New IRC (Phase In)

New IRC

Stock

LIR Stock New Code

Forecast week New Code

Qty receptions New Code

Total qty receptions New Code

Date receptions New Code

Number of

weeks

Date PIPO (Assortment Marketing)

Date OOS SkuProj

Date OOS Calculation

Discontinuation Date

Comments Demand Planning

DONE/CHECK

99350062222 4728 4680 415 - - 01/02/2020 17/02/2020 01/03/2020 Change forecasts DONE

99350062223 2496 2178 377 2832 31.03.2020 01/04/2020 06/03/2020 01/03/2020 Change forecasts DONE

99350062221 2094 3060 317 1536 31.03.2020 8 01/04/2020 25/05/2020 25/05/2020 01/06/2020 Change forecasts

99350054639 0 0 3 - - 14 01/04/2020 29/06/2020 07/07/2020 01/07/2020 Change forecasts






99350062224 1164 960 94 264 21.02.2020 01/03/2020 26/02/2020 01/03/2020 Ok DONE

99350062226 516 516 44 162 31.03.2020 1 01/04/2020 No

forecasts 08/04/2020 01/04/2020 Ok CHECK

99350062218 6456 5706 595 324 2424 03.03.2020 01/04/2020 12/03/2020 01/03/2020 Change forecasts DONE


99350062216 7476 6684 738 2184 2184 31.03.2020 01/03/2020 25/02/2020 01/03/2020 Ok DONE


99350054628 0 0 5 0 0 - 1 01/04/2020 18/03/2020 08/04/2020 01/03/2020 Ok CHECK




99350062213 4014 4014 164 288 768 03.03.2020 1 01/04/2020 06/04/2020 08/04/2020 01/04/2020 Ok CHECK

62

Appendix 9. Co-packing Tab

63

Appendix 10. Results of the Daily Fill Rate Analysis

Day Ordered

Qty Total

Ordered Qty

Bourjois

Ordered Qty

Rimmel

Missed Qty

Total

Missed Qty

Bourjois

Missed Qty

Rimmel

Fill Rate Total

Fill Rate Bourjois

Fill Rate Rimmel

Saturday 1st of February 1356 60 1296 72 0 72 94,7% 100,0% 94,4%

Tuesday 4th of February 720 0 720 12 0 12 98,3% - 98,3%

Wednesday 5th of February 654 0 654 6 0 6 99,1% - 99,1%

Thursday 6th of February 841 0 841 165 0 165 80,4% - 80,4%

Friday 7th of February 825 6 819 18 0 18 97,8% 100,0% 97,8%

Saturday 8th of February 1359 24 1335 72 0 72 94,7% 100,0% 94,6%

Monday 10th of February 18 0 18 0 0 0 100,0% - 100,0%

Tuesday 11th of February 1008 12 996 108 0 108 89,3% 100,0% 89,2%

Wednesday 12th of February 1089 18 1071 162 0 162 85,1% 100,0% 84,9%

Thursday 13th of February 408 0 408 300 0 300 26,5% 26,5%

Friday 14th of February 618 36 582 156 0 156 74,8% 100,0% 73,2%

Sunday 16th of February 822 0 822 417 0 417 49,3% - 49,3%

Tuesday 18th of February 165 0 165 72 0 72 56,4% - 56,4%

Wednesday 19th of February 318 0 318 192 0 192 39,6% - 39,6%

Thursday 20th of February 372 12 360 147 0 147 60,5% 100,0% 59,2%

Friday 21st of February 333 6 327 51 6 45 84,7% 0,0% 86,2%

Saturday 22nd of February 768 48 720 276 48 228 64,1% 0,0% 68,3%

Monday 24th of February 282 24 258 60 24 36 78,7% 0,0% 86,0%

Tuesday 25th of February 756 24 732 24 24 0 96,8% 0,0% 100,0%

Thursday 27th of February 255 0 255 0 0 0 100,0% - 100,0%

Friday 28th of February 18 0 18 0 0 0 100,0% - 100,0%

Saturday 29th of February 390 0 390 0 0 0 100,0% - 100,0%

Total 13375 270 13105 2310 102 2208 82,7% 62,2% 83,2%

Absolute Values Percentage Values

Causes for February 2020 Total Bourjois Rimmel Total Bourjois Rimmel

Codes not switched on time 507 102 405 22% 100% 18%

Backlog orders not switched 303 - 303 13% - 14%

Parameterization problems 1500 - 1500 65% - 68%

Total number of shortages 2310 102 2208 100% 100% 100%

64


Causes for March 2020 Total Bourjois Rimmel Total Bourjois Rimmel

Codes not switched on time 114 114 - 49% 95% 18%


Parameterization problems 54 60 48 33% 5% 42%

Total number of shortages 234 120 114 100% 100% 100%

Day Ordered

Qty Total

Ordered Qty

Bourjois

Ordered Qty

Rimmel

Missed Qty

Total

Missed Qty

Bourjois

Missed Qty

Rimmel

Fill Rate Total

Fill Rate Bourjois

Fill Rate Rimmel

Tuesday 3rd of March 108 0 108 0 0 0 100,0% - 100,0%

Wednesday 4th of March 108 0 108 0 0 0 100,0% - 100,0%

Thursday 5th of March 750 252 498 6 0 6 99,2% 100,0% 100,0%

Friday 6th of March 108 0 108 0 0 0 100,0% - 100,0%

Saturday 7th of March 1971 348 1623 120 102 18 93,9% 70,7% 98,9%

Tuesday 10th of March 78 6 72 6 6 0 92,3% 0,0% 100,0%

Wednesday 11th of March 759 36 723 6 6 0 99,2% 83,3% 100,0%

Thursday 12th of March 84 0 84 18 0 18 78,6% - 78,6%

Friday 13th of March 389 6 383 6 0 6 98,5% 100,0% 98,4%

Saturday 14th of March 723 12 711 0 0 0 100,0% 100,0% 100,0%

Tuesday 17th of March 459 18 441 6 6 0 98,7% 66,7% 100,0%



Friday 20th of March 195 3 192 24 0 24 87,7% 100,0% 87,5%

Saturday 21st of March 288 0 288 0 0 0 100,0% - 100,0%

Tuesday 24th of March 90 0 90 0 0 0 100,0% - 100,0%



Friday 27th of March 132 0 132 0 0 0 100,0% - 100,0%

Saturday 28th of March 54 0 54 0 0 0 100,0% - 100,0%

Tuesday 31st of March 30 0 30 0 0 0 100,0% - 100,0%

Total 7442 681 6761 234 120 114 96,9% 82,4% 98,3%

65

Day Ordered

Qty Total

Ordered Qty

Bourjois

Ordered Qty

Rimmel

Missed Qty

Total

Missed Qty

Bourjois

Missed Qty

Rimmel

Fill Rate Total

Fill Rate Bourjois

Fill Rate Rimmel

Wednesday 1st of April 72 0 72 0 0 0 100,0% - 100,0%

Thursday 2nd of April 36 0 36 0 0 0 100,0% - 100,0%

Friday 3rd of April 159 0 159 0 0 0 100,0% - 100,0%

Saturday 4th of April 180 0 180 6 0 6 96,7% - 96,7%

Tuesday 7th of April 18 0 18 0 0 0 100,0% - 100,0%

Wednesday 8th of April 168 0 168 6 0 6 96,4% - 96,4%

Thursday 9th of April 168 0 168 0 0 0 100,0% - 100,0%

Friday 10th of April 132 0 132 0 0 0 100,0% - 100,0%






Tuesday 21st of April 78 0 78 0 0 0 100,0% - 100,0%

Wednesday 22nd of April 174 0 174 0 0 0 100,0% - 100,0%

Thursday 23rd of April 84 0 84 0 0 0 100,0% - 100,0%





Total 2406 0 2406 45 0 45 98,1% - 98,1%


Causes for April 2020 Total Bourjois Rimmel Total Bourjois Rimmel

Codes not switched on time - - - - - -


Parameterization problems 15 - 15 33% - 33%

Total number of shortages 45 - 45 100% - 100%

66

Day Ordered

Qty Total

Ordered Qty

Bourjois

Ordered Qty

Rimmel

Missed Qty

Total

Missed Qty

Bourjois

Missed Qty

Rimmel

Fill Rate Total

Fill Rate Bourjois

Fill Rate Rimmel

Friday 1st of May 174 0 174 0 0 0 100,0% - 100,0%

Tuesday 5th of May 36 0 36 0 0 0 100,0% - 100,0%

Wednesday 6th of May 108 0 108 0 0 0 100,0% - 100,0%

Thursday 7th of May 96 0 96 0 0 0 100,0% - 100,0%

Friday 8th of May 384 0 384 0 0 0 100,0% - 100,0%

Saturday 9th of May 54 0 54 0 0 0 100,0% - 100,0%

Tuesday 12th of May 36 0 36 0 0 0 100,0% - 100,0%

Wednesday 13th of May 354 0 354 0 0 0 100,0% - 100,0%

Thursday 14th of May 366 0 366 0 0 0 100,0% - 100,0%

Friday 15th of May 90 0 90 0 0 0 100,0% - 100,0%

Saturday 16th of May 1272 0 1272 0 0 0 100,0% - 100,0%

Tuesday 19th of May 2892 0 2892 30 0 30 99,0% - 99,0%

Total 5862 0 5862 30 0 30 99,5% - 99,5%


Causes for May 2020 Total Bourjois Rimmel Total Bourjois Rimmel

Codes not switched on time - - - - - -


Parameterization problems - - - - - -

Total number of shortages 30 - 30 100% - 100%

TRITA TRITA-ITM-EX 2020:413

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IMPROVEMENT OF THE PHASE-IN / PHASE-OUT PROCESS IN …1452804/... · 2020. 7. 7. · PIPO -...

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