Last updated on April 20, 2014 at 8:28 EDT

L’Oreal USA Gains Purchasing Power with IBM Services and Cloud Analytics

May 15, 2013

New analysis tool from IBM Research combs millions of buying transactions to pinpoint issues, optimize purchasing compliance across the L’Oreal USA organization

ARMONK, N.Y., May 15, 2013 /PRNewswire/ — IBM (NYSE: IBM) announced today a major three-year agreement with L’Oreal USA for expert procurement services using an advanced cloud analytics solution that will transform the way L’Oreal USA buys from its network of North American suppliers. The new services will enable the company to bring beauty products to consumers more quickly and efficiently.

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With this agreement, L’Oreal USA will partner with IBM to undertake a complete transformation of the buying, compliance and management of its vendor and supply process, ultimately leading to lower costs and increased supplier value. The company will tap 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. Together, these will help the marketing and procurement team at L’Oreal gain immediate and broad access to global data to make faster and more insightful decisions, while ensuring purchasing compliance.

“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,” said Rich Ullrich, Vice President Indirect Procurement, L’Oreal USA. “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.”

L’Oreal USA, headquartered in New York, is a wholly-owned subsidiary of L’Oreal SA, the world’s leading beauty company. Over the years, L’Oreal USA has rapidly grown through both acquisitions, and its existing brands. With the new market advancement, the company’s ecosystem of suppliers and vendors has grown exponentially. In order to continue to realize more savings from procurement, L’Oreal USA needed its procurement workforce compliant with its spending processes to attain the best buying advantage.

Powerful Combination of Services, Research, and Cloud Analytics

IBM’s work with L’Oreal USA represents a unique combination of IBM research, services and software. L’Oreal is the first client to purchase IBM global procurement business process and technology services that include a new compliance analytics tool from IBM Research, integrated with strong spending analytics capabilities from the IBM SmartCloud procurement management software.

The IBM procurement management solution will provide spend analytics and program governance in support of all procurement sourcing activities. The IBM Research tool is designed to detect unusual buying problem areas across millions of buying transactions and optimize compliance by evaluating the impact of possible corrective actions to improve spend compliance. This tool will be integrated with IBM software for Smarter Commerce spend analytics, that together forecast data on buyers’ compliance with procurement processes and ultimately help drive increased savings.

“As one of the leading names in the beauty segment of the consumer products goods market, L’Oreal has long understood that attention to detail drives bottom line improvement,” said Lori Steele, General Manager IBM Global Process Services. “We’re pleased L’Oreal 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.”

About L’Oreal USA:
L’Oreal USA, headquartered in New York City, is the largest subsidiary of the L’Oreal Group, the world’s leading beauty company. In addition to corporate headquarters in New York City, L’Oreal USA has Research and Innovation and Manufacturing and Distribution facilities across seven other states including Arkansas, Illinois, Kentucky, New Jersey Ohio, Texas and Washington. The company’s portfolio of leading brands includes Lancome, Giorgio Armani Beauty, Yves Saint Laurent Beaute, Viktor & Rolf, Diesel, Cacharel, L’Oreal Paris, Garnier, Vichy, La Roche-Posay, L’Oreal Professionnel, Kerastase and Shu Uemura Art of Hair. The U.S. is the base for product development, international marketing and advertising of L’Oreal’s thirteen American brands: Maybelline New York, Soft-Sheen.Carson, Kiehl’s Since 1851, Ralph Lauren Fragrances, Essie Cosmetics, Redken 5th Avenue NYC, Matrix, Mizani, Pureology, SkinCeuticals, Dermablend, Clarisonic and Urban Decay. For more information on L’Oreal: www.lorealusa.com; Facebook at L’Oreal USA – Corporate Facebook Page ; and Twitter @LOrealUSACorp.

About IBM Cloud Computing
IBM has helped thousands of clients adopt cloud models and manages millions of cloud based transactions every day. IBM assists clients in areas as diverse as banking, communications, healthcare and government to build their own clouds or securely tap into IBM cloud-based business and infrastructure services. IBM is unique in bringing together key cloud technologies, deep process knowledge, a broad portfolio of cloud solutions, and a network of global delivery centers.

For more information on IBM Cloud: http://www.ibm.com/smartcloud;
IBM SmartCloud Solutions: www.ibm.com/SaaS
Twitter: http://www.twitter.com/ibmcloud
IBM Cloud Blog: http://www.thoughtsoncloud.com.

For more information on IBM: http://www.ibm.com/services/bpo/scm

Mary Rose Greenough
IBM Media Relations


Source: PR Newswire