The life cycle of the fragrance industry shows that France is much ahead of other countries in terms of perfumes. The country is in a matured state for a considerable period of time.
Supply Chain Management
The supply chain management of Dior consists of five stages namely supplier, procurement, production, distribution and finally the consumer. 3 logistics companies are concerned with the supply chain management system of Dior perfumes.
The different aspects of the logistics system of Dior includes supplier, procurement, production, distribution and the end consumer (Cordón, Hald & Seifert, 2013). The suppliers of the raw materials of the fragrances like different types of flowers,im are from different countries, maybe Europe or India (Dior, 2017). Procurement of the raw materials is in Paris itself. Production occurs in different places of Paris and other cities in France. Distribution takes place from France to different parts of the world. Consumers from different countries are able to buy the product. The inbound logistics include suppliers, material handling, warehousing and inventory control (Christopher, 2016). Procurement, production and assembling come under the operational activities. Distribution, delivery, warehousing and order processing come under outbound logistics (Rushton, Croucher & Baker, 2014). Procurement relates to the purchase of raw materials, supplies and assets (Wisner, Tan & Leong, 2014). Impression Logistics of Paris is concerned with the movement of the perfume products from the supplier to the procurement division. It also takes the product from the procurement to production department. Sanac Logistics of Lille is responsible for taking the product from production units to the distribution centers. Stocklin Logistics of Paris is concerned with the most important part of the supply chain, taking the finished products of Dior from the distribution centers to the end consumers.
Modes of Transportation
The various modes of transportation at the different levels of the supply chain management of the perfume company have been shown in the diagram above.
The methods of transportation of the products of Dior include road, rail, ship, truck etc.
Dior uses different modes of transport for the freight and shipping of its materials. Rail and ship are the best ways of transportation of the products of Dior across the different parts of the world (Okonkwo, 2016). The products are sent to different countries by ship and flight. They are transported to the warehouses by rail and by road. Transportation of the perfumes products of Dior are maintained at a certain temperature and facilitates the delivery of cargo to the warehouses by roadways. The transportation system of Dior also includes storage of the cargoes, filings of containers for the purpose of shipment, loading of the cargoes on a platform and proper delivery of the perfume products to the recipients.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Cordón, C., Hald, K. S., & Seifert, R. W. (2013). Strategic Supply Chain Management. Routledge.
Dior. (2017) . The Raw Materials. Retrieved 30 May 2017 from https://www.dior.com/beauty/en_int/ds-discover-dior-raw-materials.html.
Okonkwo, U. (2016). Luxury fashion branding: trends, tactics, techniques. Springer.
Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Cengage Learning.