Success Story - Pierre Fabre

Healthcare & Beauty

THE COMPANY

PFDC_Image_1The Pierre Fabre pharmaceutical group operates in three sectors: drugs, health and dermocosmetics.

Pierre Fabre Dermo-Cosmétique (PFDC), one of the branches of the group, generates the majority of its turnover. PFDC, the pioneer in the development of the cosmo-cosmetics concept, is the market leader in Europe and is the world’s No. 2 with 4,400 employees and a turnover of 1.1 billion euros. It has laboratories in 124 countries and 27 subsidiaries over the world.

For over 50 years, PFDC has been building on cutting-edge expertise, particularly in natural substances, thermal dermatology, biotechnology and sterile cosmetics. Care products manufactured by the company comply with the most demanding requirements of efficiency and safety on the market.

 

THE CHALLENGE

One of the main challenges for PFDC has been to improve the quality of service while reducing stock levels and minimising costs. To achieve this, it was necessary to adjust the forecasting process when tackling the problems of the sector and, thus, to update information systems in order to streamline the exchange of data between sales and production departments

With its 27 subsidiaries each of which has a culture of their own, the important thing for PFDC has been to bring together teams from different countries to use the same tool. The challenge of the project has been therefore to implement a unique Core Model solution in these locations.

A forecasting tool has also been indispensable for managing stock levels. Forecasting is a major issue in the dermocosmetics sector due to the high frequency of promotional periods.

 

THE SOLUTION

The FuturMaster tool has been integrated in the supply chain of the business and rolled out to subsidiaries in 19 countries.

To be able to implement the solution used by PFDC today, with the support from FuturMaster its teams have undergone five stages of development.

Firstly, a DRP (Distribution Resource Planning) platform was installed to manage the supply of subsidiaries. During the second stage, a PMP (Production Master Plan) was set up, followed by a PSP (Production and Sales Plan).

This led to the improvement of the process with the various teams being able to effectively collaborate on the procurement plan over a period of seven to 12 months, given the distance between the sites.

With a view to continuous improvement, PFDC has then analysed obtained data to optimise its performance by using respective indicators and dashboards.

At the final stage, the coding of the products was controlled to improve the management of stock levels and to respond to the needs of the subsidiaries and, thus, ensure consistent DRP globally.

The Results

Overall, the response from the subsidiaries to the implementation of the tool has been very positive. It has led to the increase of the turnover by 8-10% per year, improving the quality of service while reducing stocks and breakages and phasing out obsolete products.
Vincent Pomponne / Supply Chain Project Director at PFDC

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Pierre Fabre Dermo-Cosmetics has been collaborating together with FuturMaster to improve its supply chain for number of years. Find out more about the solutions they are using and the results they have achieved.

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