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Supply Chain Management Lush Hogeschool TIO Utrecht
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This document conducts extensive research into the Supply Chain of Lush Cosmetics.
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Name: Lotte van `t VeerDate: 10-04-2022
Lecturer: A. Hofman
Course: Purchase and Supply chain Management
1
,Inhoud
Assignment week 1 Company Introduction: ........................................................................................... 3
Mission Statement .............................................................................................................................. 3
Unique selling position ........................................................................................................................ 3
My choice of product ............................................................................................................................. 4
Ingredients list ..................................................................................................................................... 4
Four essential goods for Lush .................................................................................................................. 5
Definition and Composition ................................................................................................................ 5
Assignment week 2 Purchasing Process (Fischer): .................................................................................. 6
Product Specification............................................................................................................................... 7
Lush Purchasing Department ................................................................................................................ 11
Operational Excellence ...................................................................................................................... 11
Cost control and reduction of all purchasing-related expenses ....................................................... 11
Risk management and innovation ......................................................................................................... 12
Assignment week 3 Purchasing’s maturity: .......................................................................................... 13
E-procurement ...................................................................................................................................... 13
Assignment week 4 Supplier selection Process:.................................................................................... 14
Purchasing issue .................................................................................................................................... 14
Assignment week 5 Kraljic’s Matrix and strategies: .............................................................................. 16
Lemon Grass ...................................................................................................................................... 16
Olive Oil ............................................................................................................................................. 17
Citric Acid........................................................................................................................................... 17
Avocado ............................................................................................................................................. 17
Purchasing Risks .................................................................................................................................... 17
Assignment week 6 Sourcing:................................................................................................................ 19
Assignment week 7 Purchasing structure: ............................................................................................ 20
The different markets........................................................................................................................ 20
Assignment week 8 KPI: ........................................................................................................................ 22
Animal testing.................................................................................................................................... 22
Freshest cosmetics online ................................................................................................................. 22
Ethical buying .................................................................................................................................... 22
100% vegetarian ................................................................................................................................ 22
Naked ................................................................................................................................................ 22
Assignment week 9 Stakeholders:......................................................................................................... 23
Assignment week 10 Corporate Social Responsibility: ......................................................................... 24
Reference list ......................................................................................................................................... 25
2
, Assignment week 1 Company Introduction:
Lush was established in 1995 by Mo Constantine, Mark Constantine, Rowena Bird, Helen Ambrosen,
Liz Bennett and Paul Greeves. After a past organization of this group (Cosmetics to Go) passed on,
lush was established. Beauty care products To Go experienced its own prosperity, yet the six
originators were propelled and invigorated and began another organization: 'Lavish'. Rich is 10%
possessed by its workers, and individuals are the essence of our organization. It creates and
circulates creams, cleansers, shampoos, shower gels, salves, lotions, scours, covers and different
beauty care products for the face and hair.
The organization professes to use only vegetarian formulations, 85% of which are also vegan. The
company operates shops in 49 countries worldwide, the vast majority of them in the US, and has
producing/manufacturing offices in the UK, Canada, Croatia, Germany and Australia.
Mission Statement
Lush's mission is to "make their products by hand with only vegetarian ingredients and little to no
preservatives." This claim is a clear indication of the quality of the products made by this
organization. It is linked to the highlights pictured.
• Recognized quality
• Advanced wellbeing
The story before the rise of lush reveals a company that had a tough road until the authors
discovered the secret to the quality of its products - the freshest ingredients. Lavish adopted the
strategy of 100 per cent veggie-loving correction and excellence items and gained notoriety in North
America as a result. The company also sets other standards, such as exposed packaging and high-
quality products that are free of animal-tested ingredients. The novelty of this organization’s
products is one of the key features that customers praise due to its commitment to welfare.
Unique selling position
• The founders were already against animal testing before the company was founded and have
also implemented their ethical values at Lush. The company evaluated its products on human
subjects instead and did not enter into relationships with suppliers who did not share the
same ideology.
• Lush uses minimal packaging for its products. For example, Lush sold shampoos and
antiperspirants in strong boards. Cleaning products were enclosed in greaseproof paper,
while items such as bubble bars and ballistics were not bundled by any stretch of the
imagination. Items could be transported home in paper bags. Color codes were used to
identify natural items and normal items.
• Lush's products were cheaper than its competition, for example, those of The Body Shop, but
more expensive than the contributions of surrounding competitors and shops. A substantial
proportion of Lush's items were planned as butcher's squares, priced by weight.
3
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