Cosmetics and Beauty is one of the largest markets in the world. According to Grand View Research, in 2021, global cosmetics market revenue totalled $254.08 billion. Approximately $22 billion is spent annually on beauty products in Australia, where the beauty industry has a projected growth rate of 3.1 per cent from 2022 to 2026.
As the cosmetics market continues to grow it brings attractive prospects and unique challenges. The beauty industry was not immune to the effects of the Covid-19 pandemic. Numerous lockdowns caused severe supply chain disruptions. Additionally rising real estate, and increasing business costs generally, staff shortages and high staff turnover and increasing customer demands continue to dampen and challenge the industry.
Few other industries see more SKU proliferation than the cosmetics industry. Different shades, formulas, patterns, sizes, beauty kits, speciality packaging, and holiday season trends, as well as a growth in health consciousness, necessitate an incredibly large number of SKUs. Additionally, unlike many other products that endure warmer or colder temperatures, cosmetics need climate-controlled facilities.
Cosmetics are also closely aligned with pharmaceuticals when it comes to safety. Combating counterfeits and digitising product supply chains are needed to ensure consumer safety.
When your product offerings and handling requirements are so broad and expanding constantly, how do you approach it efficiently? The solution is via flexible storage and fulfilment systems.
Despite these industry challenges, every company has its own unique requirements and characteristics. The good news is that technologies are available to help meet the challenges and unique requirements. The SSI Schaefer logistics experts from the health and cosmetics industry provide individual consultation and support through clever approaches. We work with you to find the optimal fulfilment solution for your needs.
We analyse your business data to help plan your system better. In the process, we get to know your order structure, your portfolio, and peak periods within your warehouse and discuss the expected growth of your products and orders. From here, we select the appropriate technologies to further your goals and tailor a system design to your needs.
What solutions can help negate industry issues?
An automated storage and retrieval systems (ASRS) solution can typically save up to 70 per cent of floor space depending on the type of ASRS technology. This is especially helpful with minimising real estate costs and is also in climate-controlled facilities as less floor space equals lower energy costs. ASRS solutions are being deployed to help combat labour shortages,
Technology improvements aren’t just about upgrading equipment. Software that helps manage storing and retrieval of raw materials, cosmetics, and end product elements, can help lower costs as well. A good warehouse management software (WMS) can help implement proper storage of inventory across multiple warehouses to ensure the management of the storage and retrieval of inventory and cycles.
With the SSI Schaefer WAMAS software portfolio, we offer support for your warehouse ranging from simple MFS approaches to complete WMS concepts.
At SSI Schaefer, we have health and cosmetic industry experts that can help get you started even before the design planning phase. The SSI Schaefer team will walk with you through an analysis of your current operation and your challenges so that your team can start planning how to leverage best practices and achieve cost savings. To see if an automation project is right for your organisation, reach out to us here or visit us at CeMAT in Sydney from July 25-27.
