Propuesta práctica

At the end of 1977, Revlon‘s board of directors decided to build a production plant, on the outskirts of Dublin, Ireland. The plant was completed two years later, july 1979 following extensive project work, including transfers of technology from former subcontractors. The building cover 2800 square meters for production, research laboratories and quality control. The current extensions now have been completed and have increased the capacity for filling from 22 million to approx. 40 million units. The plant is one of Europe‘s most modern cosmetic manufacturing units and is well equipped with high technology production equipment.

All Revlon products undergo strict physical, chemical and microbiological control before reaching the customer. The objective is that the customer should be able to rely on the product to promote long term quality, regardless of how it was purchase.

In order to attain this objective, all deliveries of raw materials and packaging are tested according to strict specification before they enter the production process. An overriding priority is to offer consumer products that meet the highest safety and quality standards. The water used is tested daily to guarantee a high degree of microbiological purity.

11.1.1 RESEARCH & DEVELOPMENT

BEAUTY RESEARCH

Revlon‘s has over 40 years of experience in producing beauty products, combining the best natural ingredients with the latest scientific research. The accumulated knowledge and experience has been gathered into one dedicated Research & Development team that is based in two locations, Dublin, Ireland and Stockholm, Sweden. All together, the Research &

83 Development function employs over a hundred scientists and technical experts, covering many scientific disciplines including formulation science, skin research, clinical testing, process development, packaging technology, microbiology, toxicology, environmental science, patent support, and global regulatory affairs.

FROM IDEA TO LAUNCH

The process from idea to launch takes several years, involving valuable time and resources through the stages of R&D, manufacturing, marketing and distribution. Thus, being at the forefront of trends and needs is essential to deliver a strong offering to the market on time. It is the only way to gain new customers and to make old ones‘ remains loyal to the brand. Revlon‘s customers come from various parts of the world; have different habits, income and needs. To create attractive offers for such a heterogenic customer base requires a wide product range, high launching pace and proactive reaction to new trends. It is a constant challenge to stay on top of competition and remain innovative through the constant launches. Ideas originate from various sources such as international fairs and exhibitions, global trend reports, research projects and focus groups. A strong team of brand managers representing all five product categories is continuously monitoring trends, needs and new launches in order to stay in the loop maintain competitive strength and gain market shares.

ENSURING THE HIGHEST STANDARD

Revlon‘s core competencies embrace a wide range of technologies and products, with the accent placed squarely on delivering innovative, high performance formulations with proven scientific consumer benefits. The products comply with the most stringent international regulatory requirements, and are extensively tested to ensure optimum safety, efficiency and quality as well as ethical and environmental integrity. No Revlon‘s product has ever been tested on animals. Having an in-house Research and Development centre provides Revlon greater flexibility over product development in line with

84 the Company‘s natural Swedish heritage, ensuring delivery of the highest standard product in the shortest possible time.

11.1.2 MANUFACTURING AND LOGISTICS

Revlon‘s products are manufactured both in-house and by various subcontractors with expertise in specific product areas. Revlon‘s owns five manufacturing units based in Poland, Sweden, India, China and Russia. These factories focus primarily on the production of Skin Care, Fragrances, Personal and Hair Care and Colour Cosmetics- areas in which there are sufficient volumes to achieve economies of scale. Revlon‘s is continuously exploring new sourcing opportunities closer to its main markets. In 2009, Revlon‘s has successfully ramped up the production at its new Moscow site and the year before, Revlon‘s initiated bottling and packaging of fragrance products in Ukraine. Revlon is also continuously striving to increase energy efficiency. The Swedish facility is now only using clean hydroelectric power and minimizing energy needs through the use of heat pumps.

11.1.3 QUALITY ASSURANCE

Revlon‘s quality assurance team works both with in-house manufacturing operations and subcontracted suppliers to achieve consistent adherence to the high quality, safety and ethical standards set by the Company, no matter the location of the manufacturing site. Revlon‘s maintains a policy of global compliance for all its products to ensure conformity with the highest market standards. Examples include adherence to stringent water quality standards and a strict control over other raw materials used in production.

11.1.4 CODE OF PRACTICE

During 2009 Revlon‘s integrated the new ISO Cosmetic Good Manufacturing Practice (GMP) Standard with the Company‘s Code of Practice. This new ISO standard gives guidelines for the production, control, storage and shipment of cosmetic products. All Revlon‘s suppliers are audited on a regular basis to ensure compliance with the Code of Practice and the Code of Ethics. Revlon‘s carries out Corporate Social Responsibility (CSR) & Quality Audits on all accessories suppliers in China, to ensure that they not only meet Quality

85 standards, but that they also comply with the Company‘s Ethical Policies. This is an extra layer of audit, in addition to the frequent audits carried out by Revlon‘s sourcing and procurement partners.

WASTE

Revlon‘s is committed to minimizing the waste produced, having numerous ongoing initiatives to reduce the amount of waste generated. For example, the Company has decreased its total effluent waste by introducing site treatment at two facilities. Revlon is continuing to reduce total waste in the manufacturing operations and the goal is to achieve an additional 10 percent reduction in total waste generated per unit production

WATER

With operations in countries like India and China, reducing water use is of course another key priority for Revlon. During the past five years the Company has managed to achieve a combined reduction of 35 percent in water use at the manufacturing operations. From 2010 to 2015, the goal is to deliver an additional 10 percent reduction (per unit production) in water use at the manufacturing facilities leading to a total reduction over a decade of at least 45 percent.

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