The Cosmetics and Personal Care industry is a fast-growing, rapidly expanding, and highly diverse industry with a wide omnichannel presence driven primarily by lifestyle changes and evolving consumer trends. While being highly attractive and opportunistic, the market is at the mercy of shifting consumer trends. Thus, the industry is characterized by short product cycles, complex product development, precise storage and packaging requirements, highly precise production, and product individualization.

Thus, companies are looking for a solution that offers precision and flexibility in production processes and integration with core processes such as inventory management, quality management, sales & distribution and financial management. The solution must have extremely strong supply chain capabilities to service omnichannel requirements and ensure rapid time-to-market as well as give real-time visibility into business operations through reporting and analytics.

Benefits offered by SAP for
the Cosmetics and Personal Care Industry

  • Supports R&D and new Product Development and structures the management and maintenance of complex, multi-level formulas.
  • Ensures products are produced to meet industry quality standards and regional/global compliance, regulatory and safety standards.
  • Ensures situations of material unavailability/shortages during production are avoided, wastages are managed and reduced, and finished products are produced as per market demand.
  • Product scheduling and lot traceability features help in tracking material movement across the operations and distribution value chain.
  • Enables multi-level cost calculation and brings better visibility into profits per product line and multi-level contribution margins, through real-time insights.

SAP for the Cosmetics and Personal Care Industry


  • Integrates R&D, new product development and manufacturing with core business functions such as Inventory Management, Quality Management, Sales and Distribution, and Financial Management, bringing real-time visibility into business operations through reporting and analytics.
  • End-to-end supply chain visibility facilitates efficient order fulfillment, instant identification of material shortages, real-time purchase requisitioning, inventory efficiency, and faster time-to-market. Enables margin calculation at item, order, and batch levels.


  • Ensures regulatory and safety compliance throughout the production process, avoiding fines and unplanned downtime due to non-compliance
  • Provides a framework for strict quality control through the production cycle, meeting regional as well as global standards, and reducing the risk of errors and substandard products. Offers full batch control, batch and serial retesting, and two-way batch traceability.


  • End to end real-time visibility and accurate data enables quicker assessment of costs and margins, faster decision making and swift response to changing demand.
  • Brings structure to the management and maintenance of complex, multi-level formulas. The personal care and cosmetics manufacturing software is fully responsive to changing recipes and ingredients, and multiple simultaneous product revisions.


  • Cloud infrastructure capabilities provide a stable foundation for accelerated growth across multiple e-commerce channels and retail chains.
  • Automated data collection enables analysis of consumer preferences and purchase drivers, uncovering unmet needs and hidden opportunities that can be quickly exploited before the competition sets in.
  • AI and IoT capabilities help to analyze trends, gauge current capabilities, and predict future scenarios.