L'Oreal : 
Optimising Indirect Spend and Tail-End Management

As one of the world's leading FMCG with a portfolio of reputable cosmetic brands, L'Oreal puts significant effort in growing its brand through sales and marketing activities. These departments were sourcing and managing over 85 vendors, which contributed to a growing tail-end spend.

Today, it has improved its tail-end spend management with ADAM's payment and purchase management system, as well as  integrating ADAM with SAP v5 OCI.

About L'Oreal

L’Oréal has set itself the mission of offering all women and men worldwide the best of cosmetics innovation in terms of quality, efficacy and safety

> Set-up in Malaysia : 1995
> 20 brands available in Malaysia
> 800 employees

The Challenges

  • Time-consuming vendor registration process for ad hoc vendors
  • Growing list of one-off vendors that contributes to a long tail-end, tainted data, time-consuming nature of registering those vendors
  • Each department was sourcing, liaising and managing over 85 vendors across multiple categories
  • Departments had to register & pay many different small vendors as part of their campaigns

The Solutions

ADAM Payment Management Solutions

  • Digitalised the formerly manual payment service process through ADAM, an e-Procurement system developed by Supplycart
  • The company reduced the number of contact points to vendors from 6 contact to 0 contact points
  • We partnered with L’Oreal to ensure that the 115 users adhered to its PO policy requirements

ADAM Purchase Management Solutions 

  • Under purchasing service, the users saved time on activities pertaining to coordinating purchases including:
  • Vendor accreditation
  • Verifying requirements
  • Order placement
  • Overseeing fulfillment
  • Processing payments 

Punchout Integration on ADAM : SAP v5 OCI

  • Punch-out to ADAM allows users to eliminate manual input of free-form text in procurement system, which initially resulted in the following:
  • Increased margin of error
  • Compromised data harmonisation
  • Longer searching and browsing time

Results from Punchout Integration on ADAM : SAP v5 OCI

Zero Maintenance Cost 

The catalogue is maintained and updated by ADAM at zero cost

Data Harmonization

ADAM’s catalogue eliminates free-form text input allowing for better data harmonisation

Maintenance Compliance

ADAM ensured users adhered to L'Oréal's purchasing policy

Web-based

With ADAM being web-based, no complex installation is required


Benefits Delivered

RM 210,000 Annual Savings

By using ADAM as a payment-on-behalf agent, the company generated 7% monthly savings compared to using other agencies

Reduced By 211 Vendors

Improved tail-end management - With Supplycart acting as a master vendor, the company has reduced its tail-end vendors 

Reduced process by 60%

ADAM's purchasing services enabled the users to reduce the number of steps taken in purchasing products and services

Saved time of up to 4 days

ADAM successfully reduced the company's purchasing time from 7 days to 2-3 days

Over 190 Sub-categories matched 

ADAM matched 192 subcategories to L’Oreal’s existing 15 categories according to UNSPC standards.

 1 Month Integration Process

With L’Oreal’s cooperation, the integration process took place within 1 month - allowing quick accessibility and execution of solution

L'Oréal logo

Khaw Mel Han

Assistant Purchasing Operations Manager at L'Oréal Malaysia Sdn Bhd

Hear From Our Client

L’Oreal implemented a regional internal Purchasing solution utilising SAP ARIBA which went live last September.

One of the Post-Go-live functionalities of ADAM was the punch-out catalogue: this allowed suppliers to integrate their catalogue to SAP. End users can now easily procure items while adhering to our internal approval processes and compliance requirements.

ADAM is currently our only supplier that is successful in integrating an end-to-end punch-out catalog in our testing environment.

Throughout the integration and testing period, the ADAM team were quick in setting up test data, meticulous in integrating ADAM with SAP and Ariba, and proactive in resolving technical challenges, whilst collaborating with our IT team in Shanghai.

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