Improvement of Demand Management and Inventory Management in E-Commerce of Estée Lauder Companies

This thesis will be focused on improving the processes of demand forecasting and inventory management in the online sales channel on the example of the Russian affiliate of Estee Lauder Companies. The measures proposed in the work should help the company to reduce the level of excess inventory, improve the service level and increase the gross sales of the company. The current business processes were analyzed, and a complex solution using Loginom IT platform was proposed to solve the problems. Considering the difficult financial situation of the last year and the fall of the real income of the population, the competition on the market of premium cosmetic products has considerably increased. In such an environment, companies need to audit current business processes to eliminate bottlenecks and identify the causes of rising costs. Due to the high volatility of sales typical for this market, inventory costs are growing. Therefore, first of all, it is advisable to audit and optimize the processes of inventory management. The purpose of this work is to develop measures to improve inventory management processes and demand forecasting. The objectives of this work are:: To analyze the external and internal environment of the organization and the current market situation; to analyze the current financial performance of the company; to assess the current state of the company's logistics activities and identify its problems; to explore the existing theoretical aspects and best practices of demand forecasting and inventory management and suggest measures to improve these processes in the company; to describe the implementation of the proposed measures and assess their impact on the logistics activities and financial performance of the company. The result of the work is the practical implementation of the proposed solution developed on the Loginom platform with minimal monetary and time costs. The Loginom platform has already been implemented and has been actively used by the company's employees for a long time for process automation and advanced analytics. The work consists of three chapters, a conclusion, a list of used literature and appendices. The text of the work is written on 87 pages, including 36 figures and 9 tables.