L'Oreal USA Gains Purchasing Power with IBM Services and Cloud Analytics

   L'Oreal USA Gains Purchasing Power with IBM Services and Cloud Analytics

New analysis tool from IBM Research combs millions of buying transactions to
pinpoint issues, optimize purchasing compliance across the L'Oreal USA

PR Newswire

ARMONK, N.Y., May 15, 2013

ARMONK, N.Y., May 15, 2013 /PRNewswire/ --IBM (NYSE: IBM) announced today a
major three-year agreement with L'Oreal USA for expert procurement services
using an advanced cloud analytics solution that will transform the way L'Oreal
USA buys from its network of North American suppliers. The new services will
enable the company to bring beauty products to consumers more quickly and

(Logo: http://photos.prnewswire.com/prnh/20090416/IBMLOGO)

With this agreement, L'Oreal USA will partner with IBM to undertake a complete
transformation of the buying, compliance and management of its vendor and
supply process, ultimately leading to lower costs and increased supplier
value. The company will tap a powerful portfolio of IBM procurement services,
consulting and analytical expertise including a new analytics tool developed
by IBM Research, as well as IBM SmartCloud commerce solutions. Together, these
will help the marketing and procurement team at L'Oreal gain immediate and
broad access to global data to make faster and more insightful decisions,
while ensuring purchasing compliance.

"With our rapid growth and expansion, weneeded deep category knowledge across
all spend areas as well as the assurance of compliance with all buying
processes in order to realize true savings," said Rich Ullrich, Vice President
Indirect Procurement, L'Oreal USA. "IBM was unparalleled in its ability to
deliver cutting-edge data analytics, the best cloud commerce solution and the
strategic sourcing and technology services needed to make it happen."

L'Oreal USA, headquartered in New York, is a wholly-owned subsidiary of
L'Oreal SA, the world's leading beauty company. Over the years, L'Oreal USA
has rapidly grown through both acquisitions, and its existing brands. With the
new market advancement, the company's ecosystem of suppliers and vendors has
grown exponentially. In order to continue to realize more savings from
procurement, L'Oreal USA needed its procurement workforce compliant with its
spending processes to attain the best buying advantage.

Powerful Combination of Services, Research, and Cloud Analytics

IBM's work with L'Oreal USA represents a unique combination of IBM research,
services and software. L'Oreal is the first client to purchase IBM global
procurement business process and technology services that include a new
compliance analytics tool from IBM Research, integrated with strong spending
analytics capabilities from the IBM SmartCloud  procurement management

The IBM procurement management solution will provide spend analytics and
program governance in support of all procurement sourcing activities. The IBM
Research tool is designed to detect unusual buying problem areas across
millions of buying transactions and optimize compliance by evaluating the
impact of possible corrective actions to improve spend compliance. This tool
will be integrated with IBM software for Smarter Commerce spend analytics,
that together forecast data on buyers' compliance with procurement processes
and ultimately help drive increased savings.

"As one of the leading names in the beauty segment of the consumer products
goods market, L'Oreal has long understood that attention to detail drives
bottom line improvement," said Lori Steele, General Manager IBM Global Process
Services. "We're pleased L'Oreal USA is able to combine the best of IBM's
research-rich expertise and cloud-based analytics to gain control over total
supplier spending, and thereby transform its procurement function from a
corporate cost center to strategic company asset."

About L'Oreal USA:
L'Oreal USA, headquartered in New York City, is the largest subsidiary of the
L'Oreal Group, the world's leading beauty company. In addition to corporate
headquarters in New York City, L'Oreal USA has Research and Innovation and
Manufacturing and Distribution facilities across seven other states including
Arkansas, Illinois, Kentucky, New Jersey Ohio, Texas and Washington. The
company's portfolio of leading brands includes Lancome, Giorgio Armani Beauty,
Yves Saint Laurent Beaute, Viktor & Rolf, Diesel, Cacharel, L'Oreal Paris,
Garnier, Vichy, La Roche-Posay, L'Oreal Professionnel, Kerastase and Shu
Uemura Art of Hair. The U.S. is the base for product development,
international marketing and advertising of L'Oreal's thirteen American brands:
Maybelline New York, Soft-Sheen.Carson, Kiehl's Since 1851, Ralph Lauren
Fragrances, Essie Cosmetics, Redken 5th Avenue NYC, Matrix, Mizani, Pureology,
SkinCeuticals, Dermablend, Clarisonic and Urban Decay. For more information
on L'Oreal: www.lorealusa.com; Facebook at L'Oreal USA - Corporate Facebook
Page ; and Twitter @LOrealUSACorp.

About IBM Cloud Computing
IBM has helped thousands of clients adopt cloud models and manages millions of
cloud based transactions every day. IBM assists clients in areas as diverse as
banking, communications, healthcare and government to build their own clouds
or securely tap into IBM cloud-based business and infrastructure services. IBM
is unique in bringing together key cloud technologies, deep process knowledge,
a broad portfolio of cloud solutions, and a network of global delivery

For more information on IBM Cloud: http://www.ibm.com/smartcloud;
IBM SmartCloud Solutions: www.ibm.com/SaaS
Twitter: http://www.twitter.com/ibmcloud
IBM Cloud Blog: http://www.thoughtsoncloud.com.

For more information on IBM: http://www.ibm.com/services/bpo/scm

Mary Rose Greenough
IBM Media Relations


Website: http://www.ibm.com
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