Global supply chain instability continues to impact the cosmetics and personal care industry. According to a 2023 McKinsey & Company report, over 70% of consumer goods companies experienced supply chain disruptions in the past year, with the beauty sector particularly vulnerable due to complex ingredient sourcing, regulatory demands, and shifting consumer preferences. In response, cosmetics brands are adopting more agile, tech-enabled logistics strategies to maintain operational continuity and customer satisfaction.
We spoke to Nick Fryer, Vice President of Marketing at Sheer Logistics, who outlined key supply chain risks and offered data-driven approaches to help cosmetics manufacturers and suppliers navigate ongoing challenges.
Managing supply chain risk with data and distribution strategies
“Cosmetics manufacturers encounter several risks in global supply chains, including supply chain disruptions, regulatory compliance challenges, and fluctuations in consumer demand,” Fryer said. To reduce exposure, he recommended a proactive approach grounded in data analytics.
“Sheer Logistics recommends utilizing real-time and predictive data analytics to monitor transportation disruptions, demand fluctuations, and inventory issues, enabling swift, data-driven responses to potential problems,” he explained.
A decentralized distribution model is also essential to mitigating disruption, he continued. By “leveraging multiple warehouses and fulfillment centers to reduce delivery times,” he shared, these strategies can “provide alternatives in case of localized disruptions.”
Navigating regulatory complexities in cross-border logistics
Cross-border shipments, especially those involving sensitive or restricted cosmetic ingredients, are subject to varying international regulations. “With the threat of tariffs looming, the potential for disruption to cross-border logistics increases,” Fryer said, which is particularly relevant for industry stakeholders in light of the Trump administration’s shifting stance on global tariffs and trade policies.
He also emphasized the importance of expert support. “Cosmetics manufacturers and retailers should consider collaborating with experienced logistics service providers that can provide the specialized technology, comprehensive regulatory knowledge, and cross-border logistics experts you need to remain compliant and avoid disruption,” he recommended.
Preserving ingredient integrity through advanced monitoring
Many cosmetic products rely on fragile or temperature-sensitive ingredients that require precise handling in transit, which “must be protected from extreme heat and cold in order to maintain their quality and integrity,” Fryer noted.
To ensure product safety, he recommended the use of IoT-based environmental monitoring. “Cosmetics manufacturers and retailers can utilize cutting-edge IoT sensors to monitor temperature and humidity throughout the shipping process,” he said.
These can be paired with Transportation Management Systems (TMS) to trigger automated alerts “when the temperature or humidity levels fall outside the desired parameters,” he added.
Building agile supply chains to match market demand
To respond quickly to seasonal launches and fast-changing consumer tastes, cosmetics brands need agile supply chains. Fryer highlighted the role of predictive and prescriptive analytics in achieving this flexibility.
“Predictive analytics focuses on forecasting future trends and potential disruptions in logistics operations by analyzing historical data,” he said. “Prescriptive analytics takes that prediction a step further by providing actionable recommendations on what specific actions to take to optimize operations based on those forecasts.”
Further, he explained, technology integration is key to enabling faster, more informed supply chain decisions. “Integrating key systems, such as TMS, ERP, Real-Time Transportation Visibility Platform (RTTVP), creates an information-rich environment that creates visibility, enhances agility and facilitates collaboration across the organization,” Fryer said.
Aligning sustainability with supply chain efficiency
As sustainability becomes a core focus across the beauty industry, Fryer highlighted that logistics strategies must evolve to balance environmental goals with operational efficiency and noted that many of the tools used to boost agility can also reduce emissions.
“A TMS can help plan the most efficient routes, reducing fuel consumption and greenhouse gas emissions,” Fryer said. “Logistics service providers offer multimodal capacity solutions and design customized freight consolidation programs that can further optimize shipping and reduce emissions.”
Some providers now enable real-time tracking of sustainability metrics to measure “CO2e emissions in real-time, giving actionable business intelligence that can be used to reduce overall emissions,” he concluded.