What makes beauty more beautiful? Botanical Supply Chain Network Optimization

Abstract

The beauty and personal care industry has undergone significant changes in recent years, with consumers becoming increasingly concerned about the ingredients used in their skincare products. There has been a growing preference for natural and organic ingredients, with many consumers looking to avoid products that contain harsh chemicals or synthetic ingredients. As a result, many consumer product goods (CPG) manufacturers, including Company A, have begun to develop new product lines that contain natural botanical ingredients. For our Capstone, Company A is looking for ways to evaluate and upgrade its procurement and logistics operations for natural botanical ingredients, with the ultimate goal of designing an efficient and eco-friendly supply chain. To achieve this goal, the Capstone project focused on two key areas: supplier optimization and route optimization. The first objective was to assess the current supply chain network to provide visibility on its performance and identify areas for improvement. The second objective was to formulate recommendations for redesigning the current supply chain network with the goal of decreasing travel distances and reducing environmental impact. To address these objectives, the project utilized various analytical tools, including Excel, Power BI, and Python. The team analyzed Company A's data and characterized current operations using various statistical analyses. The team also used a network design model based on the transshipment problem to connect supply, transfer, and demand sites. Finally, the project used an environmental impact evaluation feature to estimate the carbon footprint of each route in a given network. In summary, the project focused on two key areas: supplier optimization and route optimization. Using various analytical tools, the project identified areas for improvement and formulated recommendations for redesigning the current supply chain network to reduce travel distances and environmental impact. Ultimately, the project provides clear strategic directions for improving the supply chain network for natural ingredients in Company A's beauty business.