Logistics challenges for cosmetics and beauty brands in 2023

CONDIVIDI SU

The beauty industry is a colossal one and its future, according to statistics, is bright:

  • The beauty industry generates over $100 billion worldwide.
  • Men’s beauty care market is projected to reach $276.9 billion by 2030.
  • Skincare is projected to generate up to $177 billion by 2025.
  • Beauty retailers reported $17.09 billion in online sales in 2023.

 

However, as rapid as this growth is, cosmetics and beauty brands also face many significant challenges. Consumers expect high quality materials, more natural ingredients and this implies that brands must be able to respond adequately and consistently to these needs. Supply chain and logistics management plays a fundamental role in this sense, from the attention to the quality and care of the products to the sustainability of the deliveries.

Let’s take a look at some important aspects in detail.

 

Quality control and conservation

For cosmetic and beauty products, quality control is a constant process that starts from the selection of suppliers and materials up to storage, packaging and delivery to the final customer. It is important to bear in mind that products often have special ingredients that must be stored and handled with particular care in order to avoid damaging them. Factors that can influence materials are, for example, temperature, humidity, light and shocks.

 

Supply chain and inventory management

Effective supply chain management is key to ensuring timely delivery and meeting market demand. This includes managing stock in the warehouse, coordinating logistics, reducing delivery times and keeping the right amount of products available to meet demand and avoid compromising materials.

Using WMS software that allows you to have constant visibility into the inventory and to predict future demand is essential for optimizing and reducing storage costs.

 

Transparency and traceability

Consumers are demanding greater transparency and accountability from the brands they buy from. Meeting these expectations is not an easy task but working with an experienced 3PL in the sector means that you will have the necessary means at your disposal to ensure this. Tracing products is certainly very advantageous for customers, but also for companies, precisely because, in the event of irregularities or damage, they will be able to easily identify products and act promptly.

 

Last-mile delivery: optimization and sustainability

The final stage of delivering the product to the customer, known as last mile delivery, needs to be handled with the maximum attention. Route optimization is essential to ensure that products arrive in the shortest possible time.

In general, but especially when it comes to natural cosmetics and beauty products, attention to sustainability during the fulfillment process is of paramount importance to maintain brand integrity and meet consumer expectations. Here are some points to consider:

Optimization of routes and centralized warehouses: optimizing transport routes and reducing the environmental impact of the logistics network is an important objective for retailers. Having access to advanced algorithms and software such as those of eLogy helps to identify the most efficient routes based on the position of the customers, reducing the overall environmental impact of logistics. Furthermore, collaborating with 3PLs that have strategically located warehouses allows you to place product stocks to always stay close to your customers, saving on shipping costs and emissions associated with deliveries.


Sustainable packaging: using recyclable, biodegradable or compostable packaging is essential to reduce the environmental impact of your brand, thus helping to avoid plastic and general waste.

For brands that sell beauty and cosmetics products, an efficient supply chain is vital to have a competitive advantage and to adequately manage consumer needs. What often makes these products unique is their composition but this also makes them very sensitive to certain temperatures or conditions of transport. Their deterioration, defects or damage can cause serious problems and ruin the reputation of a brand. This is why it is important to collaborate with a 3PL who has the experience and adequate means to manage the supply chain efficiently, from storing products in the warehouse to deliveries to the end customer.

Tackle logistics challenges with eLogy and make your beauty & cosmetics brand shine