Natura invests in logistics to increase profitability
DCI
Aiming at becoming the largest cosmetics company in direct sales, the Brazilian Natura should invest R$ 300 million (US$ 187.5 million) this year to achieve one of its greatest challenges: cut by half the time of delivery and make a real commercial innovation by digital means, within 3 to 5 years. Today, the company that operates solely through direct sales to sell its products has the goal of reducing by 50% the time limit for delivery to its consumers, which is currently of 14 days.
The CEO of the company, Alessandro Carlucci, says the logistical problem prevents Natura from having greater profit. "We know we have to improve on the delivery of products, so we're working to create a more efficient channel for the delivery and sale to consumers and consultants through the internet. In the future, it has not yet been specified when, we take it to take only hours, not days, as it happens today", he explains. The Executive says the intent is that the consumer, or the salesperson, go into the company's website, place its order, and after a few hours s/he is able to receive the product at home, on the same day. He warns, however, it should still take time because it requires an extensive logistics work.
Meanwhile, to ameliorate the problem nearly 30% of the salespeople have products for immediate delivery. The alternative, also mentioned by the company, is the pilot project for the payment to be made by credit card on the cell phone. "It's still an attempt, because before we implement it for all consultants, we have to check how many of them have bank accounts and what would be the best way to make the payment of the commission of the consultant", said Carlucci.
According to the company Director, the social networks are the great tool to contact the consultants in Brazil. "Today we deliver 3 million catalogs every 21 days", said Carlucci. "Who knows in 4 years we will not need to print any anymore", he commented. The effort of Natura to communicate over the Internet and become a mirror of online shopping with its public began in 2000 when it started a campaign for the saleswomen to have Internet connection; today, 80% have Internet access. Also to be inaugurated later this year, even though no date has been set, the distribution centers in São Paulo and Curitiba (PR).
In 2010, Natura had net earnings of R$ 5.1 billion (US$ 2.9 billion). Compared to the previous year, there was growth of 21% in the sales of the company. The net profit reached R$ 744 million (US$ 422.7 million), increase of 8.8% compared to 2009. Today, the brand has 14 distribution centers: Canoas (RS), Uberlândia (MG), Castanhal (PA), Salvador (BA), Jaboatão dos Guararapes (PE), Matias Barbosa (MG), Simões Filho (BA), Argentina, Chile, Peru, Colombia e Mexico.