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L’Oreal USA to Upgrade Demo System
22 August 2008
L’Oreal USA has contracted Proximo Consulting Services, Inc. to upgrade its Demo System, designed and developed by Proximo for L’Oreal’s Lancome brand. The upgraded system will now be used by all L’Oreal USA Luxury Product Brands including Ralph Lauren, Giorgio Armani and Kiehls.
"Demo" (or "demonstration") is the business process that oversees the staffing of beauty advisors at the department store who demonstrate and sell cosmetics and perfumes. The Demo System enables the Finance Department to plan and manage contractual arrangements with customers such as Macy’s, Saks and Dillards. A web-based module allows the L’Oreal sales force to maintain staffing, salary information and turnover at more than two thousand retail locations with over 6,000 beauty advisors across the United States. As staffing is maintained, controls exist to keep costs in line with the plan.
The system supports either fixed arrangements where the agreement is to share beauty advisor payroll costs with the customer or variable arrangements where the demo cost is based on sales at the retail location. Customer claims for demo costs are entered into the system as they are received. Reports are then available to show discrepancies between the claimed amount and the contracted amount. The system interfaces with SAP to produce credit memos to clear receivables and to provide demo costs for P&L (profit and loss) reporting.
Proximo Consulting Services is proud to continue its relationship with L’Oreal, providing custom software solutions and support to the world’s largest cosmetics company. You can visit them online at www.lorealusa.com.
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