Paris, France – May 16th, 2019 – Argon Consulting is proud to announce its collaboration with Guerlain on an innovative approach to accelerate supply flows, based on Sigfox IoT technology and international 0G network. Guerlain, a leader in Perfumes & Cosmetics, is the first company to ever use this approach, in this case on a strategic supply flow of packaging components for Care products.
To distribute the formula of a cosmetic product, several components are necessary. Despite the relatively low unit value of these components, supply flows can be long, complex and critical with over 100 days lead time, 3 to 4 transformations on different sites and countries, intermediate assemblies, many production constraints from one process to another and numerous quality controls… The acceleration of these flows presents a real challenge when it comes to reducing time-to-market, improving agility and reducing stocks. However, this acceleration is hindered by the lack of data tracking progress.
The innovative approach developed by Argon and tested by Guerlain uses IoT sensors to monitor several quantities and events throughout the supply flow without any human intervention to get a real time view of the production status through a proprietary analysis engine. This data-based approach allows all partners (Argon, Guerlain, supplier) to collaboratively map and analyse lead times and accelerate the supply flow.
In concrete terms, the approach has enabled Guerlain to reduce the restocking period by 50 days (50%) by identifying actions as diverse as adapting order sizes, building up a stock of raw materials, transport schemes, etc. In an increasingly changing and dynamic market, the significant reduction in the component supply period provides a strong competitive advantage, as it allows the company in question to adapt to market fluctuations and reducing stocks of works in progress and end products.
“In the context of growing demand, it is essential for Guerlain to support its partners in reducing their own production lead times“, Christophe LEGRAND, Guerlain Operations Director.
Beyond supply flows, this innovative method of accelerating cycles thanks to IoT applies to any critical “opaque” flow: supply flows, subcontracting flows, multi-actor distribution flows, intercontinental flows… It is relevant in many sectors such as aeronautics and defence (OEM and MRO), luxury, pharmaceuticals…
In 2019, Guerlain undertook to pursue the approach with Argon on other European component supply flows, in order to continue to gain in agility and adapt its industrial processes to its sustained growth.