# PLM Needs for Cosmetic and Fragrance Industries: A Preliminary Assessment

Francesca La Bella, Virginia Fani, Julien Le-Duigou, Romeo Bandinelli, Florent Ferrer, Benoit Eynard

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Francesca La Bella, Virginia Fani, Julien Le-Duigou, Romeo Bandinelli, Florent Ferrer, et al., PLM Needs for Cosmetic and Fragrance Industries: A Preliminary Assessment. 19th IFIP WG 5.1 International Conference on Product Lifecycle Management - PLM 2022, Jul 2022, Grenoble, France. pp.126-135, 10.1007/978-3-031-25182-5_13. hal-04280598

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# PLM Needs for Cosmetic and Fragrance Industries: A Preliminary Assessment

Francesca La Bella<fnref n="1" />,<fnref n="2" />, Virginia Fani<fnref n="1" /> ID, Julien Le-Duigou<fnref n="2" /> ID, Romeo Bandinelli<fnref n="1" /> ID, Florent Ferrer<fnref n="3" />, and Benoit Eynard<fnref n="2" />✉ ID

**Abstract.** Nowadays, issues such as shorter time-to-market, cost saving, and quality and compliance management are among the main concerns for the formulated industry. Thus, Product Lifecycle Management (PLM), already well-established in industries such as discrete manufacturing, is becoming increasingly popular, as a solution able to support industries operating in the formulated sector. On the market side, PLM vendors are offering increasingly verticalized solution to meet market demand. However, on the scientific side, limited research has been carried out about the use of PLM in pharmaceutical industry and very poor regarding the cosmetic and fragrance industries. With scientific research not keeping abreast of commercial development, the PLM concept is often misunderstood or not fully potential exploited by PLM developers. This research aims to assess actual and potential functionalities of cosmetic and fragrance industries PLM application. Findings are based on a scientific literature review about the use of PLM in pharmaceutical, cosmetic and fragrance industries, an assessment of cosmetic and fragrance regulation environment (limited to the EU market) and a study on PLM solution commercially available for the cosmetic and fragrance industries. Some well-established functionalities were found and some other potentially valuable PLM functionalities, which are currently missing or poor developed are identified and proposed. The need and the possibility for further development of such PLM application is determined.

**Keywords:** Product lifecycle management · Formulated product · Cosmetic industry · Fragrance industry · Enterprise information system

## 1 Introduction

The Product Lifecycle Management (PLM) is a business strategy for creating and sustaining a product-centric knowledge environment. As a technology solution, PLM is an integrator of tools and technologies that streamlines the flow of information through the various stages of the product lifecycle [1].

<footnote n="1">¹ Department of Industrial Engineering, University of Florence, Florence, Italy</footnote>

<footnote n="2">² Université de Technologie de Compiègne, Compiègne, France</footnote>

<footnote>benoit.eynard@utc.fr</footnote>

<footnote n="3">³ Inetum, Toulouse, France</footnote>
Scientific research is addressing the PLM subject since more than two decades, discussing about its actual and potential value for the industry. On the commercial side, PLM applications, initially limited to some manufacturing industries, in the last years are spreading across several type of business, with ever-increasing verticalized solution addressing specific industry needs. However, especially in those sectors which are starting now to implement PLM, the development of commercial solution does not necessarily go hand in hand with scientific research and the PLM concept is often misunderstood or not fully potential exploited.

This study addresses the actual and potential use of PLM in cosmetic and fragrance industries, through a comparison with the pharmaceutical industry. The paper is organized as follows: Sect. 2 presents the research methodology; Sect. 3 defines pharmaceutical and then cosmetic and fragrance product lifecycle stages and in Sect. 4 a discussion of needed PLM functionalities is carried out. Section 5 concludes the paper.

# 2 Methodology

## 2.1 Scientific Literature Review

In order to identify how PLM can be used in the fragrance and cosmetics industries, a literature review was carried out, which consisted of two different phases.

**Phase 1.** For the first preliminary assess about the need for PLM in such kind of business, it was decided to broaden the research scope and include the pharmaceutical industry, leveraging on similarities between these sectors. Being the pharmaceuticals a more long-standing, developed, and regulated industry, such inclusion allowed to widen the literature results.

The mainly used searching engine was Scopus, with the integration of some results from Google Scholar and other indirect sources. The query that was at first used to search through papers' title, abstract and keywords is:

1. ("PLM" OR "Product Lifecycle Management" OR "Product Life Cycle Management") AND ("Pharmaceutical Industry" OR "Cosmetic Industry" OR "Fragrance Industry").

Given the poor output result (see Table 1), especially regarding the cosmetics and fragrance industries, it was decided to further enlarge the research scope, including other keywords that could have been used to refer to the PLM concept or that can be anyhow related to it, with the aim to gain a general understanding of how, in such industries, data and all information related to the product are managed all along its lifecycle. Research queries are outlined below and obtained results are summarized in Table 1:

2. ("Product Data Management") AND ("Pharmaceutical Industry" OR "Cosmetic Industry" OR "Fragrance Industry")

3. ("Product Information Management") AND ("Pharmaceutical Industry" OR "Cosmetic Industry" OR "Fragrance Industry")

4. ("Laboratory Information Management System" OR "LIMS") AND ("Pharmaceutical Industry" OR "Cosmetic Industry" OR "Fragrance Industry")
<table><caption>**Table 1.** Research output (phase 1)</caption><thead><tr><th rowspan="2">Query N°</th><th rowspan="2">Number of Scopus output documents</th><th rowspan="2">Number of documents form Google Scholar</th><th colspan="2">Documents considered to be related to the research (relying on the abstract)</th></tr><tr><th>Number of documents dealing with pharmaceutical industry</th><th>Number of documents dealing with the cosmetics or with the fragrance industry</th></tr></thead><tbody><tr><td>1</td><td>15</td><td>2</td><td>6</td><td>0</td></tr><tr><td>2</td><td>0</td><td>3</td><td>2</td><td>0</td></tr><tr><td>3</td><td>0</td><td>4</td><td>2</td><td>2</td></tr><tr><td>4</td><td>20</td><td>2</td><td>4</td><td>0</td></tr></tbody></table>

Such results allowed to gain a general understanding of the pharmaceutical industry and all challenges and issues related to the management of product data across its lifecycle, but still poor documentation was found dealing with the cosmetics and fragrance industries.

**Phase 2.** To try to better focus on the main research domain, the scope was narrowed back only to the fragrance and cosmetic industries and extended to every kind of IT systems and/or data management tool or method. Results from Google Scholar were not included, being considered not related to the research. The search query and related results are outlined below:

5 ("Electric Data Interchange" OR "Enterprise Resource Planning" OR "Material Requirement Planning" OR "Customer Relationship Management" OR "Supply Chain Management systems") AND ("Cosmetic Industry" OR "Fragrance Industry")

6 "Electronic Data Capture" AND ("Cosmetic Industry" OR "Fragrance Industry")

7 "Enterprise Content Management" AND ("Cosmetic Industry" OR "Fragrance Industry")

8 ("data warehouse" OR "data lake") AND ("Cosmetic Industry" OR "Fragrance Industry")

9 ("business intelligence software" OR "business intelligence systems" OR "business intelligence") AND ("Cosmetic Industry" OR "Fragrance Industry")

10 ("supporting information technology infrastructures" OR "supporting IT infrastructures" OR "supporting technology" OR "information infrastructure") AND ("Cosmetic Industry" OR "Fragrance Industry")

11 "Digital technologies" AND ("Cosmetic Industry" OR "Fragrance Industry")

12 "Information management system" AND ("Cosmetic Industry" OR "Fragrance Industry")

13 "Product Information File" AND ("Cosmetic Industry" OR "Fragrance Industry")

14 "Cosmetovigilance" AND ("Cosmetic Industry" OR "Fragrance Industry")
<table><caption>**Table 2.** Research output (phase 2)</caption><thead><tr><td>Query N°</td><td>Number of Scopus output documents</td><td>Number of documents considered to be related to the research (relying on the abstract)</td></tr></thead><tbody><tr><td>5</td><td>3</td><td>0</td></tr><tr><td>6</td><td>0</td><td>0</td></tr><tr><td>7</td><td>0</td><td>0</td></tr><tr><td>8</td><td>0</td><td>0</td></tr><tr><td>9</td><td>0</td><td>0</td></tr><tr><td>10</td><td>1</td><td>0</td></tr><tr><td>11</td><td>1</td><td>0</td></tr><tr><td>12</td><td>0</td><td>0</td></tr><tr><td>13</td><td>3</td><td>2</td></tr><tr><td>14</td><td>6</td><td>2</td></tr></tbody></table>

As shown, still poor results were obtained from the literature review. This led to the conclusion that, no significant scientific literature regarding the management of fragrance and cosmetic products information all along their lifecycle exists so far (Table 2).

## 2.2 Indirect Sources

To improve and try to enrich the results gained from scientific papers, some indirect sources were considered. Standards and regulations for the cosmetics and fragrance sector have been reviewed, such as the European Regulation (EC) N° 1223/2009 [2] and the previous Directive 76/768/EC, as well as the trade association Cosmetics Europe guidelines [3].

Other source of information that were used are white papers from consulting companies regarding the use of PLM and the management of product information in such industry, other non-scientific articles, together with information from some PLM vendors reports and/or websites, such as Dassault's Centric Software<fnref n="1" />, PLM Lascom<fnref n="2" /> and Selerant PLM<fnref n="3" />.

## 2.3 Summary of the Profile of Articles and References

Regarding the phase 1 of the scientific literature review, results allowed to gain a general understanding of the pharmaceutical industry. Covered topics are the pharmaceutical product life cycle, especially the new product development phase, the product data and

<footnote n="1">¹ https://www.centricsoftware.com.</footnote>

<footnote n="2">² https://www.lascom.com.</footnote>

<footnote n="3">³ https://www.selerant.com.</footnote>
information management, the challenges that pharmaceutical companies need to face and how PLM application or other IT systems can or could support them. Contributions are mainly case studies and review article, with also some original articles. In addition, two papers dealing with the cosmetic industry were found. Such papers, based on case studies, focus on the use of IT solution along the cosmetic value chain.

In the phase 2 of the scientific literature review, in which the scope is narrowed to the cosmetic and fragrance industry, results deal with the regulatory aspect and needed implications on cosmetic companies’ organizational structure, especially regarding the management of product data before and after sale. Regarding the types of the references, these are communication from Cosmetics Europe<fnref n="4" />, conference papers and reviews. In none of the above-mentioned references for the cosmetic and fragrance industry the PLM was mentioned.

Concerning the indirect sources, the study of standard and regulation that cosmetic companies must comply with allowed to deepen the results obtained in phase 2 of the scientific literature review, thus further understanding the cosmetic sector constraints and related needs. Regarding white papers from consulting companies, their main contribution is given by the fact that they represent the only reference dealing with the use of PLM in cosmetic and fragrance industry. Particularly, they give an overview of the commercially available PLM solution, their features, functionalities, and level of development of these. Such topics are further investigated analyzing some PLM vendors website. Finally, some insights from non-scientific sources are used to address the topic of the cosmetic and fragrance product life cycle, especially for the end of life.

## 3 The Product Lifecycle in Cosmetic and Fragrance Industries

To be able to understand actual and potential PLM application to the cosmetic and fragrance industries, it is key to understand which are the lifecycle stages of such products. As previous mentioned, poor scientific documentation was found regarding cosmetic and fragrance products lifecycle management. Therefore, such information was obtained through indirect sources and analogies with the pharmaceutical industry, leveraging on similarities between these industries in selling formulated products and dealing with governments safety regulation. Hence, prior to the presentation of cosmetic and fragrance products lifecycle, a description of pharmaceutical products lifecycle is provided. It is necessary to premise that, relying on the biographical documentation, the proposed lifecycle phases follow the marketing and commercialization point of view and issues related to manufacturing and product end of life are not fully considered.

In pharmaceutical industry the product lifecycle is divided into five phases [4] that has been reused to structure the proposal for cosmetic and fragrance industries (see below). Product development is a very long and complicated phase, with an average time required of 7, 2 years [4], only 2–3% of projects ending up as commercial products [5], and a very high pressure to launch new products into the market to face the branded competition [6]. In prevision of the approval of pharmaceutical products, it also needs a rigorous preclinical and clinical trials before the production scale-up from the laboratory

<footnote n="4">⁴ https://cosmeticseurope.eu/.</footnote>
to the pilot plant is made and the technology transfer process starts [7, 8, 9]. Both the technology transfer and the patent submission process need an extensive and complicated documentation. Commercialization phase consists in product grow and maturity and it is the phase in which there are the highest returns. During the growing phase, companies need to focus on increasing the market share, through promotion and marketing prices, but also through product availability and service development and improvement, to gain customer loyalty. To face the competition from generic products, it is also crucial to continuously assess new possibilities for patent protection, like for example, patent extension or litigations [4, 6, 10]. During the whole commercialization phase, companies need also to focus on pharmacovigilance<fnref n="5" />, which tracks drug side effects. Last, during the decline phase, companies start withdrawing from the market variations of the product that are weak in their market position, abandoning the alternative channels, while the basic channel should be kept efficient [6]. Many different strategies can be applied to keep the product in the market [4, 10].

Through differences and similarities with drugs and pharmaceutical products, the lifecycle phases of cosmetic and fragrance product, can be outlined as below:

*   **Product development phase:** The product development process requires different types of sequential and concurrent activities, in which several departments and external partners are involved. The product development phase is a very customer-centric activity, starting with a marketing brief, which outlines the new product requirements such as the product category, desired function, color, odor, packaging requirements, etc. Based on the inputs from marketing, available ingredients, and knowledge acquired from various publications and research papers, the formula research and development can start, together with the design of product packaging. While working on product formulation, each claim must be analyzed and concentration, allergens and chemical reaction must be evaluated to match the requirements and ensure product safety. Once the formula has been defined, raw material and packaging suppliers are selected, and the prototype or a trial production model is created [4, 5]. Unlike for pharmaceutical products, here the patentability aspect is not a primary issue, but still there is the need of a complete and extensive documentation for the registration phase.

*   **Product registration:** unlike for pharmaceuticals, to enable product commercialization, companies do not have to deal with a long and complex product approval phase, but still, they must register the product on a centralized portal. There is the need to ensure product and raw material safety and compliance with the country of commercialization: several tests must be performed, such as microbiological, toxicology and stability tests. Other tests are also needed to prove any product claimed function. All such tests can be managed internally or with external laboratories. Then, for the product registration, all documents and information about the product that are required by countries legislation must be gathered [4]. In the European Community, according to the Cosmetics Regulation (EC) No. 1223/2009, these data must be collected in the Product Information File (PIF), containing information such as the cosmetic product

<footnote n="5">⁵ The science and activities relating to the detection, assessment, understanding and prevention of adverse effects or any other medicine-related problem [11].</footnote>
safety report<sup>6</sup>, a description of the method of manufacturing, that need to comply to the Good Manufacturing Practice<sup>7</sup>, and a proof of claimed effect. The PIF must be made accessible to the competent authority of the Member State where the file is located, shall be kept for a period of ten years, and updated as necessary [2].

*   **Product introduction and launch:** After the last check of the final product, to ensure its conformity with the initial marketing brief, the product introduction phase can begin, the production can start, and the product can be commercialized [4]. To hit the product launch, so that it has the maximum impact, a detailed launch plan is needed, in which pricing, marketing and distribution plans need to be aligned [5], together with production and distribution plans.

*   **Commercialization phase:** during this phase, the product is on the market and companies must keep the distribution pipelines loaded with products, while tracking every ingredient information, manufacturing details and batch number [6], for the previous mentioned safety reasons. Thus, they need to manage the whole supply chain, with chemical but also mineral and natural row material suppliers, often externalized manufacturing facilities and several distribution channels, including departmental stores, specialty stores, mass merchandisers and e-commerce. Adapting marketing and distribution strategies, through targeted and always up-to-date advertisements and promotions is vital. Moreover, during this phase, a high customer interaction is necessary for new product development, but also product updates and refreshes. Thus, companies usually manage after-sale services, including merchandise return and exchange policies, customer feedbacks, products warranties and satisfaction surveys [5, 7]. Just like for the pharmaceuticals, while the product is on the market, companies should also deal with regulation authorities check and with market and post-marketing surveillance issues. According to the above-mentioned European regulation, they must ensure post-marketing surveillance (cosmetovigilance<sup>8</sup>) through a good functioning post-market complaint system, enabling the reception, recording, and traceability of Undesirable Effects (UE) and Serious Undesirable Effects (SUE) reports. If needed, corrective action must be taken, and the cosmetic product safety report must be updated. [2, 3, 6].

*   **Decline phase:** cosmetic and fragrance products reach the decline phase when they are displaced by new, more innovative products or when the demand for it falls, due to a change in consumer taste [8].

There are significant similarities between pharmaceutical industry and the fragrance and cosmetic industries, even if it is reasonable to assume that the management of a pharmaceutical product is a more critical business activity, given the more complicated and regulated environment and the higher product development cost and risk, due

<footnote n="6"><sup>6</sup> An expert report consisting of product and raw material safety information and showing that a safety assessment has been conducted. [3].</footnote>

<footnote n="7"><sup>7</sup> Provided by the ISO 22716.</footnote>

<footnote n="8"><sup>8</sup> The collection, evaluation and monitoring of spontaneous reports of undesirable events (serious and non-serious) observed during or after normal or reasonably foreseeable use of a cosmetic product [3].</footnote>
to the higher degree innovation. Nevertheless, as pointed out, the cosmetics and fragrance industries still have significant needs related to product data and product related information flow management.

# 4 Preliminary Results and Discussion

As, previous mentioned, poor scientific documentation was found regarding the use of PLM in the cosmetic and fragrance industries and only few papers addressed the use of IT in such domains. Some example of already commonly used IT systems are supply chain management (SCM) systems, electric data interchange (EDI) and enterprise resource planning (ERP), together with customer relationship management (CRM) [7, 9].

Regarding PLM, the scientific literature review allowed to identify actual and potential PLM functionalities for pharmaceutical companies. These functionalities were classified according to different business area and then the same categorization was used to classify actual PLM functionalities for cosmetic and fragrance industries, that were deducted from PLM vendor websites and other indirect sources. Such business area that can benefit from PLM application are collaboration in the research and development activities, geographic regulations and strategies management, supply chain information flow, product portfolio management and quality management. Among them, well established PLM functionalities that were found are the ones for collaboration in product development, label and packaging management, portfolio management and supporting for regulatory and compliance issues [10]. Also, the formula management PLM functionalities are quite developed: being a formula development a very different activity from CAD modelling, dedicated tool are needed for example to compare formulation factors and possible formulation version against several targets, access to past formulation data and ingredient libraries, automatic label updating [10], as it is the case for Selerant and Centric PLM solutions. However, the research showed that, because of the lack of standardization in the pharmaceutical industry regarding product data modeling software and collaborative electronic data managed (like CAD software for the manufacturing industry), PLM products are still needed to evolve for managing formulated product design data [11]. It can be stated that this also applies to the cosmetic and fragrance industry.

Moreover, to sustain companies in facing the presented challenges, some PLM functionalities which are still missing, or poor developed in the commercially available offers were identified:

* **Distribution and sales functionalities.** There are loads of product-related information for sale and promotion, such as product versions, current price, and availability to be managed while dealing with the highly heterogeneity of cosmetic and fragrances distribution channels, requiring and producing even more various quantity and type of data, as explained by the PLM vendor Lascom. Also, knowledge coming from product sale is a valuable source of information for the next product development phase. Most of the times, these types of data are stored and managed using different IT systems, such as ERP, SCM or CRM, while an integrated functionality in PLM applications is still missing.
* **Government interaction functionalities.** Commercially available PLM capabilities for supporting cosmetic and fragrance products compliance mainly concern data retrieval and collection and automatic safety and regulatory document creation. However, given the complexity and the heterogeneity of the regulatory environment, some valuable PLM functionalities could be the ones enabling the automation of the interaction between companies and regulation authorities, for example with automatic document submission through a communication with a centralized government portal. It would be also even more valuable for the pharmaceutical industry. However, these kind of PLM functionalities would require a higher level of automation and standardization on the government side and issues about data exchange security may arise.

* **End of life functionalities.** At present, no commercially available PLM solution was found offering functionalities regarding product end of life. However, given product chemical composition and mixed material packaging, managing the cosmetic and fragrance product and packaging end of life is far from being a trivial issue [12]. Moreover, a product waste is not only an unused product in consumers hand, but also a formula tester, an unsold or returned product, expired or discontinued product in warehouses or on store shelves [13]. Many cosmetic and fragrance brands are starting to take responsibilities for the recycle/reuse of product they sell, for example switching to refillable product, either relying on consumer engagement or directly collecting empty containers [12, 14]. It is thus expected that this or similar action aiming to enhance companies' sustainability will be increasingly common in the foreseeable future and subsequently new product data management need will arise. This will pave the way to significant opportunities for further PLM development.

# 5 Conclusion

In the last years, the use of PLM, initially limited to some manufacturing industries, has been spreading across several type of business, with ever-increasing verticalized PLM solution and a lot of scientific research dealing with the PLM issue and discussing about its actual and potential applications. This study focuses on the use of PLM in the formulated industry, especially on the cosmetic and fragrance industries. Surprisingly poor scientific documentation was found dealing with such specific subject. Thus, obtained results are based on:

* Scientific literature review about the use of PLM in the pharmaceutical industry, that gave the theoretical foundation for the research topic.

* Market study about the commercially available PLM solution and features for the cosmetic and fragrance industries, relying on PLM vendor websites, consulting company reports and other indirect sources.

* Regulatory assessment of the cosmetic and fragrance industry market, that provided insight about cosmetic and fragrance companies' duties and constraints. For simplicity's sake, only the European regulations were considered.

This research has provided an overview about cosmetic and fragrance products and business peculiarities, in which regulation requirements, the importance of the packaging
and multi-channel distribution are among the main distinctive features. The main avail-
able PLM functionalities supporting companies operating in such sector are identified.
Some of theme, like collaboration in R&D activities, product data storage and retrieval,
and portfolio management, are quite common also to the well-established PLM appli-
cation, such the ones for the discrete manufacturing. On the other side, functionalities
supporting the management of the highly diversified regulatory environment and tools
for the formula, label and packaging management are more typical of the cosmetic and
fragrance sectors.

Results show that, even if quite developed and with well-established functionalities,
PLM application for cosmetic and fragrance industries still have room for growth to
better meet specific needs. The need for a further step towards standardization to manage
formulated product design data is identified and, undoubtedly, further research is needed
to lead PLM application developers in exploiting all possible PLM functionalities that
such industries can benefit.

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