Level Group applies a methodology aimed at achieving the best cost-benefit ratio in indirect materials and services contracts.
In a solid partnership that began in 2012, Level Group developed a program of Strategic Sourcing and Procurement Outsourcing projects for L'ORÉAL Brazil—a cosmetics company with 27 global brands operating in 130 countries—which resulted in the centralization of indirect materials and services contracts across its manufacturing and operational units.
Aligned with L'ORÉAL's global strategy, Level Group developed a project with dedicated team allocation for both Strategic Sourcing initiatives and spot purchases, aimed at cost reduction and the optimization of procurement processes through scale consolidation across manufacturing and operational units.
Beyond financial benefits, the project also resulted in the rationalization of procurement processes by reducing transactional activities through the creation of corporate contracts. These changes delivered excellent results, paving the way for the project to expand to other Latin American countries, starting with the Mexican operation.
“Initially, we conducted an assessment of opportunities and then began Strategic Sourcing initiatives at L'ORÉAL Mexico—a country that has shown a strong improvement in its economic fundamentals with the rebound of the US economy and, like Brazil, still presents low productivity, making our consulting expansion into the region opportune,” highlights Di Sora, partner at Level Group.
Meanwhile, Alexandre Cruz, Executive Director of Level Group for Latin America, emphasizes that a need was identified in Mexico to support the procurement department with the goal of achieving effective negotiations and reducing the costs of indirect materials and services. “With a proven methodology from Brazil and a specialized team, we will be able to optimize results and reduce the time spent executing the project program in the region,” Cruz concludes.
