Supply Chain Analytics for a Leading Skin Care Products Manufacturer Helps Fine-tune Existing Supply Chain Strategies and Improve Efficiencies

Jul 12, 2018

What the Client Wanted

A leading skin care products manufacturer wanted to develop efficient supply chain strategies to serve the needs of its customers.

The Outcome

Made use of predictive analytics and machine learning techniques to anticipate the customer demand and accordingly regulate their inventory levels

Summary of the Global Skin Care Products Industry

The global skin care products value chain consists of raw material suppliers, skincare products manufacturers, end-use industries, and distribution channels. Over the past few years, rising awareness about the different advantages of skin care products has resulted in increased demand. Moreover, natural and organic products have become a major segment in the global cosmetics and wellness market. Additionally, increasing awareness about the harmful effects of synthetic products has led to the rise in the demand for organic products. This rising demand has subsequently led manufacturers in the global skin care products market to focus more on R&D and product innovations. Lastly, the rise of online market platforms, where customers can purchase a wide range of products from any part of the globe, has been one of the principal reasons for the increase in accessibility for skin care products.

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Industry Challenges

Environmental impact of skin care products: In recent years, sustainability has become a key concern for many businesses in the personal care and cosmetics industry. Also, consumers have become all the more concerned about wellness, health, and issues such as natural resource depletion and environmental degradation. This has promoted the demand for ‘greener’ alternatives when it comes to these products. Customers are demanding for products that do not harm their skin, nor the environment; as well as products that are free from modified ingredients and natural.

Transparency and traceability issues: Today, supply chains have become global and it is difficult to trace the origin of products used in the skin care products. Although sustainable skin care products are widely available, there remain issues of traceability and provenance.

About the Client

The client is an American multinational skin care products manufacturer based out of the United States. 

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Client’s Challenge

The skin care products manufacturer wanted to improve their logistical capabilities while maximizing overall profitability, understand the pricing pressures and develop efficient supply chain strategies to serve the needs of their customers. The company also wanted to analyze the level of uncertainty associated with the supply of products and improve the forecasting capability to remain abreast of the customer demands. Furthermore, the client wanted to gain end-to-end visibility into the supply chain and identify the best suppliers to improve their overall supply efficiency across 160+ countries.

Summary of our supply chain analytics engagement

 To know more about how our supply chain analytics helped a leading skin care products manufacturer, request more info.

Business Impact

With the help of Quantzig’s supply chain analytics solution, the leading skincare products manufacturer leveraged the use of predictive analytics and modeling and machine learning techniques to anticipate the customer demand and consequently adjust their inventory levels. In addition, the client also identified the top-performing suppliers based on the key performance indicators to make accurate shipments, on-time deliveries, and process payments. Furthermore, Quantzig’s supply chain analytics engagement also helped the client fine-tune their existing supply chain strategies and improve savings and efficiencies.

Supply Chain Analytics Insights

Quantzig’s supply chain analytics helps manufacturers across the skin care products industry to gain metrics for comparing the competence of their supply chain when compared to their industry counterparts. Additionally, firms can analyze various datasets for inbound and outbound data and split the factors influencing the delivery attributes.

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