IBM Makes Deal “Fashionable” With L’Oréal Deal

NEWS: IBM L’Oréal Deal

It is wiser to find out than to suppose.”

                                                              – Mark Twain (1835-1910), legendary author and humorist.

There was once a time when businesses were done through intelligence guesswork – you guessed what your customers would like and you provided it, you guessed what the demand will be and you procured accordingly, so and so forth. Now, “estimating” may have been the word used instead of “guessing”, but it was still an art, and an imperfect and error-prone one at that, until analytics emerged as a science.

With the use of analytics, businesses could predict the future with a greater degree of accuracy, resulting in lesser wastage, faster turnarounds and improved performance – thereby affecting both the top line and the bottom line. Now, with cloud analytics as offered by IBM, all this is possible at a lower cost than ever before.

This is where L’Oréal, the world’s largest cosmetics and beauty company, has seen value. Always a leader in the beauty industry, L’Oréal now stands as a leader among companies looking to leverage the tremendous power of cloud analytics in everyday operations. It made its intentions known by signing a major three-year agreement with IBM for expert procurement services using an advanced cloud analytics solution that will transform the way L’Oréal USA, the cosmetics giant’s wholly-owned subsidiary, buys from its network of North American suppliers.

With this agreement, L’Oréal will gain access to a powerful portfolio of IBM procurement services, consulting and analytical expertise including a new analytics tool developed by IBM Research, as well as IBM SmartCloud commerce solutions. This will completely revolutionize the entire supply chain management system in the cosmetics industry and may well see L’Oréal’s competitors following suit with similar initiatives. At the end of the day, while the company will benefit from cost efficiencies, L’Oréal’s loyal customers will benefit from new products appearing faster on the shelves.

Explaining the rationale of this agreement, Rich Ullrich, Vice President Indirect Procurement at L’Oréal USA said, “With our rapid growth and expansion, we  needed deep category knowledge across all spend areas as well as the assurance of compliance with all buying processes in order to realize true savings. IBM was unparalleled in its ability to deliver cutting-edge data analytics, the best cloud commerce solution and the strategic sourcing and technology services needed to make it happen.”

IBM, understandably, is quite pleased at this high-profile development. Lori Steele, General Manager IBM Global Process Services, commented, “As one of the leading names in the beauty segment of the consumer products goods market, L’Oréal has long understood that attention to detail drives bottom line improvement,” said “We’re pleased L’Oréal USA is able to combine the best of IBM’s research-rich expertise and cloud-based analytics to gain control over total supplier spending, and thereby transform its procurement function from a corporate cost center to strategic company asset.”

With this deal, L’Oréal has shown its appreciation of the “beauty” of IBM’s cloud analytics solution; others should soon follow.

By Sourya Biswas

Karen Gondoly

Lessons Learned When Moving to the Cloud

Moving to the Cloud Lessons At Leostream, we work with organizations around the globe that are moving workloads to the cloud. These organizations span a ...
Future Fintech

What’s the cloud forecast for 2020?

Tech Agnosticism In 2019, we saw how cloud computing transformed the way data is managed, the way applications are developed and deployed, and also the ...
Kishore Durg

Relevance at scale is the key to growth – just ask Del Monte Foods

Relevance at scale is the key to growth Consumer goods companies have seldom had things tougher. The possibilities shown to consumers by customer experience leaders ...
Hamza Seqqat

The Benefits of Virtualizing SD-WAN and Security

Benefits of Virtualizing SD-WAN As more companies adopt SD-WAN technology to enhance the agility of their networking architecture, they must give strong consideration to how ...
Yuri Sagalov

IT Culture Clash Where Employees Use Multiple Devices To Collaborate

Employees use multiple devices to collaborate It used to be that company IT decision makers could simply dictate the software that business units would use ...
Google Prog

Working with security researchers to make the web safer for everyone

Working with security researchers What do a 19-year-old researcher from Uruguay, a restaurant owner from Cluj, Romania and a Cambridge professor have in common? They’re ...
Byod.png