Articles

Vendor Selection in the Cosmetic Industry using Analytics Hierarchy Process (A Case Study of Saejiva Company)

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The Indonesian fragrance industry, under the cosmetic industry, is growing, with an increasing income per capita in the perfume category, despite a dip in 2020. The global natural fragrance market, growing at an estimated 9% CAGR from 2023 to 2032, shows a strong preference for essential oil-based fragrances. Essential oils, derived from natural plant parts, are costly to produce due to large-scale machinery, skilled labor, and environmental factors. Companies often outsource these aspects to reduce costs and focus on core competencies like marketing and sales. Saejiva, a natural fragrance brand, currently faces challenges in vendor selection, experiencing issues with inefficiency, delays, and poor product quality from previous vendors, has the effect of reducing potential profits and necessitating a reevaluation of their vendor choices. This study uses the Analytical Hierarchy Process (AHP) to help Saejiva select a new vendor by prioritizing criteria that meet the company’s requirements and recommending the best vendor. Data was collected through literature reviews to identify relevant criteria, Focus Group Discussions (FGD) to find essential criteria for the company, and AHP questionnaires. Saejiva’s C-level executives acted as experts in the FGDs and AHP questionnaires to determine criteria priorities and vendor alternatives. The results showed the importance levels of criteria as follows: capability (0.3668), quality (0.1848), cost (0.1382), service (0.1068), capacity (0.0654), delivery (0.0606), warranty (0.0525), and performance history (0.0249). The importance levels of vendor alternatives were SKI (3.1994), AVF (2.7415), and SHB (2.0591). Thus, the best vendor recommended for Saejiva is SKI as the next vendor.

 

Proposed Marketing Strategy to Increase Sales for Lip Tint (Case Study: Feyrely)

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Feyrely.id is a local makeup brand under PT Orion Care Indonesia. Established during the COVID-19 pandemic era, Feyrely.id utilize digital marketplaces for its sales. The brand mainly offers lip products, including lip tint, at affordable price. While the cosmetic market shows significant growth and lip tint products are trending, data indicates low and declining sales of lip tint products, coupled with low brand awareness among consumers. Therefore, this research is conducted to help increasing Feyrely.id’s sales and brand awareness. This study employs both qualitative and quantitative methods. Quesionnares are spread through various consumers to obtain data, along with interviews with Feyrely.id internal team. Secondary data from books and online sources also compliment this research. This research results in the new segmentation, targeting, and positioning for Feyrely.id and a new marketing mix, including product, place, price, and promotion. It can be concluded that Feyrely.id has a solid standing in cosmetic industry with their lip tint products but needs several adjustment to keep being competitive.

Risk Identification in Packaging Material Warehouse in PT. Cedefindo using the House of Risk Method

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The cosmetic industry in Indonesia continues to experience rapid growth, in line with high consumer demand and the widening cosmetic market. In 2021, based on data from the Central Statistics Agency (BPS), cosmetics will grow by 9.61%. One of Indonesia’s well-respected cosmetic manufacturing companies is PT. Cedefindo, which is part of the Martha Tilaar Group. Martha Tilaar Group is one of the local pioneers in the Indonesian beauty industry. There are very large numbers and types of packaging in the warehouse of PT. Cedefindo. Due to the wide range of products, there are a number of risks associated. As a result of redesigns and product discontinuation, a lot of unused packaging material has accumulated in the storage facility. Deadstock and unused packaging materials can disrupt the flow in the warehouse, increasing costs and reducing available storage space. Delays in delivering packaging materials to the production line are a further risk that could be triggered by flow disturbances. Given this potential risk, the company must identify potential risks in every packaging material warehouse activity. Currently, PT. Cedefindo has not examined every action in the packaging material warehouse to identify risks. Risk identification is very important because it will enable the company to develop plans to minimize harmful events before they arise, without proper risk identification, no mitigation strategy can be devised. This research was conducted by identifying warehouse activities, mapping them into (SCOR) and identifying risks using House of Risk Phase 1. The first stage of the House of Risk process is the identification of risk events and risk agents. Next, the severity and occurrence levels are measured, and the aggregate risk priority (ARP) value is calculated to determine which risk agents should be prioritized based on the Pareto diagram. There are 18 risk agents and 15 risk events have been identified as a result of this research, 6 risk agents were given the highest priority based on the Pareto diagram, and 2 risk agents were identified as having a high-risk level and being in the red zone, requiring immediate direct action.