Cosmetics giant L'Oréal is doubling down on Brazil by opening a new distribution centre in the city of Jarinu, in the interior of São Paulo. The new facility has a capacity for 75,000 positions, almost double the capacity of the previous distribution centre, which is located in Rio de Janeiro and supports around 40,000 jobs.
The new facility – one of the largest L'Oréal distribution centres in the world – spans over 62,500 square meters, which is the equivalent of nine football fields, with the possibility of expanding by an additional 20,000 square meters. "The idea is that a new DC will support the company's growth in Brazil for the next ten years. It is a facility the size of our ambitions for the country", says Jeferson Fernandes, director of operations at L'Oréal Brasil.
The location in the interior of São Paulo will also make delivery faster for most of L'Oreal's customers in the South, São Paulo and the south of Minas Gerais. Delivery time should decrease from three days for same-day deliveries to customers in São Paulo. "Today, that counts a lot; customers are demanding more agility with better service", he says.
With an investment of hundreds of millions of reais, the new DC was built to be carbon neutral, allowing L'Oréal to reduce a third of its carbon emissions in Brazil. Due to its proximity to the company's main customers, the DC will also allow for a reduction of around 28% in CO2 emissions from transport. In addition to agility, proximity to customers will reduce the delivery cost.