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Title:
Proximo Plugs a $930,000 Leak for L’Oréal
Client: L’Oréal USA, a subsidiary of the L’Oréal Group,
the world's leading beauty company
Background:The company
employs over 8,000 beauty consultants that work at more than
2,000 retail cosmetics counters across the country. L’Oréal
and the individual retailer split the payment of wages to
these beauty consultants.
Problem: Due to an inadequate record-keeping system,
L’Oréal was paying vastly more than their share of the consultants’
wages.
Assessment: L’Oréal required a highly customized system
to solve its unique business problem. Before building such
a system, Proximo conducted an in-depth assessment of L’Oréal’s
needs in order to understand:
- The exact terms of L’Oréal’s complex
wage-splitting relationship with its retailers
- How the system would integrate
with L’Oréal’s other databases
- The ways in which the system would
have to be flexible in order to accommodate future changes
and growth
Solution:
Upon completion of the assessment, Proximo designed and built
a record-keeping system that allows L’Oréal to instantly see
whether retailers are correctly billing them for the wages
of beauty consultants. The system allows L’Oréal to check
for billing discrepancies in a multitude of ways, including
by store, region, manager and nationwide search.
Result: In the year prior to the system’s introduction,
L’Oréal’s retailers overbilled them by $930,000. Thanks to
the system that Proximo built, disproportionate wage expenditures
have been reduced to nearly zero.
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