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摘要

Just 18 months ago, Shiseido Co., Japan's largest cosmetic group, looked like it needed a major makeover. Like many Japanese businesses, Shiseido had sought to dominate its market by blitzing customers with scores of product lines. The trouble was that Shiseido execs had little notion of what was selling. The company had warehouses full of unsold cosmetics, yet couldn't meet demand for some of its hottest items. The inefficiencies hurt: Over the past two years, Shiseido has lost more than $550 million. Realizing they were in trouble, company execs last year swung into action. They cut costs, streamlined product lines, and―most important―improved inventory control. After installing a new computer network linking factories, sales staff, and 16,000 stores, Shiseido managers can now more accurately forecast demand. They have slashed inventory by a third from a year ago, helping land Shiseido back in the black. On Nov. 6, the company reported net profits of $81 million for the six months ended Sept. 30, compared with a $12 million loss a year ago. "We're showing other Japanese companies that it's possible to reverse a slide," boasts Seiji Nishimori, Shiseido's chief logistics officer.