L’Oréal renews logistics contract in Indonesia

By Simon Pitman

- Last updated on GMT

L’Oréal renews logistics contract in Indonesia
As part of its business expansion plans in Indonesia L’Oréal says it is about to renew its logistics management contract with global supply chain management company CEVA.

The companies started working together three years ago, when CEVA took over the warehouse management of L’Oréal’s distribution centre in Bekasi, Western Java, close to the regional capital of Jakarta.

CEVA has been providing all logistical services for the facility, including warehousing and distribution services, as well as a number of other value added services.

CEVA deepens logistical support to L’Oréal

Under the terms of the new contract, CEVA will continue to manage all aspects of the warehouse management, including VAS, traffic management and reverse logistics for the entire range of L’Oréal’s marketed throughout Indonesia.

CEVA claims that its logistical management has enabled L’Oréal to remain on track with its growth ambitions in Indonesia, by helping the company to consolidate its distribution centre, in turn helping it to increase resource efficiency and optimizing space utilization.

To date, L’Oréal is the only cosmetics company that has managed to maintain a presence in all cosmetic distribution channels in Indonesia, putting it in a strong position to take advantage of the country’s fast economic growth and consumers’ growing spend power.

Euromonitor says Indonesia is 'one to watch

Earlier this year, market research company Euromonitor International, singled out Indonesia as ‘one to watch’, stating it to be one of the fastest-growing cosmetics markets in the world.

Indeed, Indonesia is now even included in the recently identified BIITS markets – Brazil, India, Indonesia, Turkey and South Africa, which have usurped the BRIC markets – Brazil, Russia, India and China – as the primary focus for growth.

The market research firm notes that although latest figures show real GDP growth decreased to its slowest pace since 2009 in the first quarter of this year; “in the long term, if not on the same scale as China in the BRIC, Indonesia will remain the key market to watch in the MINT.​”

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