MultinationalCosmetic Manufacturer SelectsPRODAC’s MES (Manufacturing Execution System) to Create Unified System, Improve Efficiency, and Strengthen Traceability of Raw Materials



L’Oréal is a subsidiary of L’Oréal S.A. (International), the world’s leading cosmetics group. The Company manufactures, imports, exports and markets leading cosmetics brands including: L’Oréal Paris, Lancôme, Yves Saint Laurent, Ralph Lauren, Giorgio Armani, Cacharel, Garnier, Maybelline, Vichy, Kerastase, L’Oréal Professionnel, and Matrix. Currently, 93% of the shares are owned by L’Oréal International. The Company employs over 1,000 employees in 3 operation centers. Their plant manufactures about 19 million hair and care products per year, exported mainly to Europe and the USA.



L’Oreal wanted to combine and fully integrate its MES system with its ERP system, in order to create a unified system that would improve planning and efficiency – and strengthen the traceability of raw materials used in production. The company needed to know exactly which raw materials were in each pallet that contained 500-1000 small bottles, and to manage the entire process, so that their system would not only enable access to information, but actually control production. They needed quality control checks in their bulk and packaging processes so that errors in raw materials would be caught and prevented by stopping production.



L’Oreal turned to PRODAC, which customized its system – creating a native integration with SAP through a unique interface that easily and naturally takes information directly from the company’s SAP Business One ERP system automatically, using SAP’s API. All the data regarding products, bills of material, etc., now goes through a specially modified system that does stock management directly from PRODAC. Quality control is fully integrated into the production system so that each step is dependent on the other steps and each batch of raw materials must be approved in order to add it to the production line.



L’Oreal now has a unified production system integrating its MES and ERP systems. Data is now readily available and the entire production process is controlled through stringent quality control of raw materials. Errors are prevented by requiring every batch of raw materials to be checked before being added to production lines. The system assures full traceability of raw materials used in every item on every pallet.

According to Shlomo xxx, “PRODAC has customized its solution for L’Oreal in order to answer our specific need for stringent quality control and raw material traceability. This specially-tailored PRODAC system ensures that errors are prevented, not only by supplying real time information – but by actually controlling production by requiring the approval of every batch of raw materials before it enters the production line. We now have a unified system that is fully integrated with our SAP Business One ERP system, and we can control every item in every pallet, and prevent problems in our production line before they occur.”