The implementation started in April 2005. Within a period of 4 months, the system went ‘live’ on target. Prior to the implementation of iPOP, Loreal uses KEYfields’ iCPS module to receive manually prepared purchase forecasts from subsidiaries, consolidate the forecasts, review and amend consolidated forecast before sending out the Central Procurement Order (CPO) to the respective factories. However, the iCPS module does not assist the subsidiaries to calculate and suggest purchase forecast.
Hence to improve the whole inventory forecasting and replenishment process, Loreal Asean opts for KEYfields iPOP system. iPOP uses a standard and unify method to assist Loreal’s Asean subsidiaries to simulate and suggest the Excess Quantity and Purchase Forecast . The simulation will be based on information retrieve from each subsidiary’s ERP system, 3PL’s Logistics system and iCPS. Information includes latest Inventory Balances, Stock-in-transit, SKU’s ABC Code, Sales Forecasts and Rules such as the number of cover month and safety stock. The Purchase Proposal generated from the system includes transfer of excess quantity across subsidiaries and a suggestion to purchase from factory if no excess quantity exists. The Loreal Asean subsidiaries can view their purchase proposal by login to the iPOP system via web browser (Internet Explorer).
When factory sends the Order Confirmation and Invoice it will be interfaced to iPOP to perform the split across Loreal Asean subsidiaries based on a rule-based formula setup by the Central Logistics Team. The calculated information will also be used to interface to Loreal Asean Central Hub in Singapore.