The utmost efforts of Amorepacific to change the world through beauty apply not only to the content of cosmetics, but also to their packaging. Developing competitive packages while guaranteeing high quality to satisfy customers is essential for success in the global market. In this context, the Development & Purchasing Division of the SCM Unit has operated an CFT (Cross Functional Team) for cushion compact development since the second half of last year. The high cost reduction effect they achieved by improving packaging this year is highly significant. We interviewed Yu Minho from Packaging Development 1 Team and learned about the meaning of the innovation in packaging and the vision of strengthening brand competitiveness.

I am responsible for developing packages for cosmetics, and in particular, I oversee the development of packages for premium brands. More specifically, I am in charge of various field and management work required to embody package designs into actual products. The ultimate goals of our team include releasing new products on time, maintaining perfect quality, while improving and innovating packaging.

To reduce the costs of cushion compact packaging, we had to approach this from a comprehensive perspective rather than focusing on any individual issue. So in this project, we decided to use a "parallel" method where the representative of each team gathers together, rather than the existing "series" method where each team works separately. After forming the team, we focused on identifying and improving on issues related to the material, process and subcontractors of packaging. Under the ultimate goal of reducing packaging costs, the members of the team who were assigned with their respective tasks gathered together every week to check the progress of their work. We could gradually clarify in which direction we should head, and carried out the process in such a way that if we complete our own tasks respectively, our final goal will be achieved.

I made a presentation on the tasks the members of the cushion compact development CFT carried out to improve packaging under the theme "Cost innovation for laying the foundations for sustainable growth of cushion compact." I also shared the results our team achieved. I prepared the presentation for a month and I am pleased that the result was good, but more importantly, I am very grateful that the efforts our CFT colleagues made paid off.

One may think cost reduction is in inverse proportion to quality. However, if you reduce costs by compromising quality, you are ignoring the consumers. As today's consumers do rational consumption considering both price and performance, we had to improve both quality and cost efficiency. As a solution, we made it a rule to reduce costs while still maintaining or improving design and quality.

The toughest part was to implement multiple cavities in the mold. More cavities in the mold means more plastic castings at a time. As such, we had to improve the mold to produce many castings at a time.

As the cushion compact containers require precise injection molding, problems could surface with even just a slight deviation of dimensions. The package should work properly after being assembled from multiple parts, and should be compatible with other package parts produced by multiple subcontractors. To this end, we had to measure and inspect many molds and parts produced by subcontractors, which was the most challenging aspect for our team members. This challenge was unavoidable though, and the only way we could overcome it was to make efforts and cooperate with one another. All our team members gathered our wisdom to find a solution, and eventually we were able to achieve a successful result.

These days you can see so many kinds of cushion compacts in the market, and it is getting more challenging to produce products that satisfy customers. Cost reduction means higher competitiveness in SCM (supply chain management). Quality, supply and cost are the three axes of SCM competitiveness. Of them, cost reduction is one of the most basic activities to seek profits, and I think that continuous cost innovation contributes to securing larger funding for marketing and sales activities to differentiate products.

I learned that it is limited to perform tasks alone and that it is more efficient to approach the project from a comprehensive perspective. I was able to learn that securing the power of execution through collaboration is essential in successfully implementing the project.

I also realized that making a timely response to a global trend is important, but at the same time, for us to set a trend, carrying out long-term projects for generic technologies is also important. To establish a global standard that can meet the needs of global consumers, it is essential to make long-term investments in R&D to secure generic technologies. I think qualitative growth through this will lay the foundations for solidifying our brand identity as a trend-setter in the market.

What I must focus on as a member of the team developing packaging is to secure global development quality. While improving packaging to minimize production costs and improve quality at the same time, we need to improve productivity by reducing defect and return rates, and also achieve cost reduction effects by contributing to improving sales.

In addition, keeping in mind that the quality power of our subcontractors leads to the quality power of our packaging, we need to strengthen our internal and external capabilities and infrastructure by, for example, continuously discovering competitive subcontractors at home and abroad. Currently the SCM Unit is striving to achieve this through a variety of methods.

In the end, this is part of the process to realize our Qualitative Business Practices. We are committed to fulfilling Amorepacific's unique "Unlimited Business Responsibility" spirit to produce customer-satisfying products through cost reduction pursuing both quality and speed.