Jakarta, Indonesia
PT L’Oréal Indonesia is currently operating in a highly digitised world where online sales are beginning to make a real impact in terms of revenue generation for the company globally.
In Indonesia, to reflect this growing importance of online sales, it was decided the company would transform their offline company shop into a web-based digital platform. Citi Indonesia referred payment gateway partner (and also L’Oréal client), Doku, to help build this platform, with all collections sent to Citi.
The company understands the need to digitise, not just in response to the growing demand for digital retailing solutions from the general public, but also the needs of its internal staff and business vendors.
It is convinced that addressing these digital demand drivers will help with the company’s broader objective of generating greater efficiency across the entire organisation and supply chain.
As well as digitising for its customers, the company has also built an accounting portal for its over 400 suppliers to upload their invoices instead of sending through emails. This enables the company to digitally archive them with ease. By putting an approval matrix inside the system, it can be easily checked whether the tax invoices are also included alongside the commercial invoices. This helps to neatly mitigate problems that frequently arise when the supplier does not input VAT details and the company is unable to reconcile during tax audits.
The company is also building a legal digital platform by importing a solution from a USA vendor. It will allow users who want to engage a vendor to easily generate a standard L’Oréal contract via the system. This will greatly improve communications internally in relation to back and forth emails between vendors and the legal team and so help shorten the long lead times for contracts to be signed.
The company has developed a novel solution that uses its employees as a pilot customer base to test the collectivity and payment module of the new website portal in real-time, with Citi as the collections bank. Aside from that, the company is achieving improved efficiencies across all measures relating to customers and internal ‘clients’ with the help of the digital solution.
More broadly, the solution is expected to become increasingly popular with users overall and help increase company revenues.
It will achieve cost efficiencies in the process and void the need for manual support in both payments and legal advice.
“Being recognised for our effort to digitalise the way we work drives us to even further accelerate into the world of digital.”
– Jaehyeok Shin, CFO, PT L’Oreal Indonesia