CHALLENGES AND STRATEGIES IN SUPPLY CHAIN MANAGEMENT: A CASE STUDY IN DERMOCOSMETICS

Objective: To investigate the supply chain of a small dermocosmetics company in Belo Horizonte, MG, by analyzing direct and indirect impact factors on the management of this chain. Theoretical Framework: The study is based on supply chain management theories, SWOT analysis (strengths, opportunities, weaknesses, and threats), cause and effect analysis, and concepts of production planning and control (PPC). Method: A single case study with a qualitative and descriptive approach. Data collection was conducted through on-site visits, unstructured interviews, and document analysis. The SWOT matrix was applied in the sales sector, disadvantages of the production process were identified, and causes and effects in supplier management were analyzed. Results and Discussion: The study identified a lack of control in supplier management, production, and sales processes, resulting in negative impacts on the company's operational efficiency. The SWOT matrix revealed strengths such as a well-trained sales team, but also significant weaknesses such as inadequate inventory control. The cause and effect analysis identified overproduction, high inventory costs, and waste due to a lack of communication between processes. Research Implications: The study enhances the understanding of the importance of effective supply chain management in small dermocosmetics companies and demonstrates the applicability of single case studies with detailed qualitative data collection.


INTRODUCTION
The assessment of the supply chain is essential to ensure the control and good progress of the processes (Cooper et al., 1997).Relationship management is highlighted as crucial to achieving profitable results for all parties involved in the chain (Christopher, 2018).Studies involving supply chain have been widely discussed, reflecting their importance to sustainability and organizational efficiency.Batista Junior and Begnis (2021) highlighted that environmental, social and economic aspects should be addressed in the business strategy in an integrated manner, with the involvement of all components of the supply chain.Araújo et al. (2024) discussed the importance of incorporating sustainable transportation practices into the supply chains of Brazilian agro-industry, highlighting their potential to reduce costs, increase operational efficiency, and enhance the reputation of businesses.Adwiyah et al. (2024) mapped supply chain processes and their performance was assessed using the Supply Chain Operation Reference technique for Digital Standard.
Cost leadership strategies, based on economies of scale, are essential to increase competitiveness, and Sales and Operations Planning (S&OP) plays a vital role in aligning sales, marketing, production and distribution strategies (Simchi-Levi, 2010).Production management involves managing the resources that create and deliver products and services, judged by objectives such as quality, speed, reliability, flexibility and cost (Slack et al., 2020).
From a practical perspective, quality management with suppliers should be conducted by the Department of Supply to ensure a harmonious and mutually beneficial relationship (Marinho et al., 2014).The selection and evaluation of suppliers are fundamental for the quality of the final product and the performance of the production chain (Che and Wang, 2008).4 This study focuses on a small company, located in Belo Horizonte, Minas Gerais, that operates in the cosmetics and dermocosmetics sector, exclusive for beauty salons.The personal care product market has grown consistently, even in unfavorable economic conditions, highlighting the need to manage and analyze supply chain performance (Yapar, 2017).
The question-problem driving this study is: What are the impacts of supply chain management on a small company in the cosmetics and dermocosmetics business, especially regarding sales, production and supplier processes?The objective of this study is to analyze the supply chain of a small company in the cosmetics and dermocosmetics industry, identifying the impact factors and their direct and indirect effects on the sector.
In-depth understanding of the supply chain is crucial for small cosmetics and dermocosmetics companies as it directly impacts sales strategy, production processes and supplier relationships.This article proposes to investigate how efficiency and strategic management of the supply chain can increase the competitiveness and sustainability of small businesses in this sector.
With a highly competitive and regulated market, agility in responding to consumer demands, cost reduction and quality assurance are key.This study seeks to justify the importance of integrated supply chain management practices, showing how they can optimize production, improve product quality, and increase customer satisfaction.
Furthermore, the research intends to analyze the specific challenges faced by small companies, such as the limitation of resources and the dependence on suppliers, proposing strategies for overcoming them.Thus, this article aspires to contribute to the improvement of managerial practices, offering valuable insights to managers who seek to strengthen the competitive position of their companies in the cosmetics and dermocosmetics market.

SUPPLY CHAIN: DEFINITION AND CONCEPTS
The conceptual principle of the Supply Chain originated from logistics, which in its entirety brings together the flow of products and services (Ballou, 1993).Although the supply chain concept came from logistics, logistics is now part of supply chain management (Lambert et al., 1998).When analyzing the entire supply chain, it is possible to identify that the beginning of the chain is in the supply of raw materials and ends in the consumption of the good or service (Stevens, 1989).
All the members of the supply chain, as well as suppliers, retailers, customers and carriers, bring the responsibility of customer service, financial analysis, distribution routes and other functions that aggregate in the functioning of the system (Chopra and Meindl, 2003).

SALES
Sales can be achieved through various marketing tools that stimulate the desire and consumption of products or services, influencing consumer behavior (D'Astous et al., 2003).
Door-to-door selling, or direct selling, is characterized by high confidence, satisfaction and personalized service, which increases sales assertiveness and customer loyalty.This type of sale is usually conducted by independent dealers, consultants or sellers (Luk et al., 1999).

PUSHED PRODUCTION PROCESS
The push system offers several advantages that are significant for operations management.First, it provides a high control of manufacturing operations, allowing precise coordination of production processes.This is especially useful for ensuring consistency and quality of products.In addition, this system allows more assertive delivery times, as products are manufactured in advance and kept in stock, ready to be shipped as needed.Another benefit is the ease of understanding more complex systems, since production is based on forecasts and detailed planning.Finally, the pushed system responds well to demands with high variability, because the anticipated production can accommodate fluctuations without affecting the immediate availability of products (Fernandes and Godinho Filho, 2010).
However, the pushed system also presents some significant disadvantages.One of the main ones is the need to maintain a high stock of inputs and finished products, which can lead to high storage costs and the risk of obsolescence.In addition, early production can make it difficult to identify operational failures, as problems can be masked by excess inventory.This can result in a lower responsiveness to quality and efficiency issues.Finally, operating costs tend to be higher due to the need for additional resources to manage and store large amounts of stock, in addition to investment in sophisticated forecasting and planning systems (Fernandes and Godinho Filho, 2010).Revolution, resource efficiency and new product development became important (Morgan, 2007).In the third phase, the focus came to include the customer and the process.The fourth phase introduced questions about process requirement by customers, design quality, process capability, and continuous improvement.The last phase highlighted the importance of the supply chain (Morgan, 2007).
Metric creation allows you to monitor supplier performance and take necessary actions, with many experts considering vendor evaluation to be the most important activity of a purchasing department (Sanayei et al., 2010).In addition to costs, key performance indicators (KPIs) must address supplier relationship, lead time and quality.Strategic decisions must be centralized, with vendor performance monitoring and control managed locally (Christopher, 2005).
In the supply area, it is ideal to have clear guidelines for the evaluation and standard of service of suppliers, realizing that customers' expectations may differ from their actual needs.
Periodic reporting and metrics are essential to monitor the performance and utilization of supply chain resources, assisting in identifying necessary improvements (Bowersox et al., 2014).
Continuous improvement tools, when used correctly, reduce process failures and waste.
Companies that adopt lean management optimize lead time and value aggregation time, creating maps of the future state with incremental improvements (Lima and Zawislak, 2003).
Making decisions based on indicators impacts the supply area and the organization as a whole (Cárdenas-Barrón et al., 2015).Monitoring KPIs is key to assessing supplier efficiency and supporting strategic decisions in the company, especially in the cosmetics sector (Anand et al., 2015).Product Information Table 1 presents some of the main KPIs according to these authors.The cost covers not only operating costs, but also transaction costs, such as finding suppliers, establishing contracts, monitoring performance, transporting products, and maintaining inventories (Slack et al., 2020).In the cosmetics sector, quality is essential due to the direct impact on customers' health, requiring suppliers to strictly comply with contract specifications to ensure customer satisfaction and avoid legal and reputational problems (Rogiers et al., 1999).Speed of service is vital due to high demand, allowing the company to maintain adequate stocks and respond promptly to market needs, improving customer satisfaction and operational efficiency (Slack et al., 2020).Reliability in the supply chain focuses on consistent delivery, avoiding additional costs and operational inefficiencies that impair the company's ability to meet customer expectations (Slack et al., 2020).The flexibility is the supply chain's ability to adapt to changes in demand and supply capacities, essential to maintain competitiveness and customer satisfaction in a fluctuating market (Slack et al., 2020).
These indicators assist in selecting and evaluating suppliers, but also support continuous improvement and optimization of supply chain operations.

SWOT MATRIX
The SWOT (Strengths, Weaknesses, Opportunities, Threats) or FOFA (Strength, Opportunity, Weakness, Threat) Matrix is a technical strategic planning tool for decisionmaking that enables analysis and assessment of internal factors that are strengths and weaknesses, as well as external factors that are points of opportunity and points of threat (Wang and Wang, 2020).The production process begins with the weighing of the raw materials, followed by the handling to produce the final products (Figure 1).After quality control approval, the products are packaged, labeled, and forwarded for shipment.Quarantine is applied before final release by the quality industry.When a new supplier is needed, the Purchasing industry looks for alternatives on the market that meet the required specifications.Samples are sent for analysis by the R&D and Quality sector.After approval, the first purchase is made and the Quality sector monitors the delivery, verifying time and quality.
Throughout the year, the Quality sector monitors the performance of suppliers, evaluating aspects such as packaging damage, quantities supplied and material cleaning.
Suppliers who do not reach a minimum grade are disqualified and can no longer provide to the company.However, the company does not perform comprehensive vendor management considering other KPIs, such as product cost, delivery capacity, and flexibility.

RESULTS AND DISCUSSIONS
For the improvement of the sales process, a SWOT analysis was performed that identifies strengths, weaknesses, opportunities and threat points.
In the internal environment of the company, the findings are: in-depth training of the commercial team on technical knowledge of the products offered, personalized treatment to the customer and the monitoring of the brand's reputation in the market (strengths).While, they are considered weaknesses: attendance is exclusively in person, causing the representatives to wear out with displacement, the lack of innovation in sales and little explored digital marketing.
Reflecting on the company's external environment, i.e., points where the company does not have complete control, increased purchasing power, growth in the use of products for beautification and the use of digital marketing become a great opportunity for points to be explored.The threats encountered are: competition with competitive prices, an increase in the 10 cost of products due to the high prices of the inputs and the rigid supervision of the competent bodies.Such strengths, weaknesses, opportunities, and threats are shown in Figure 2.

Figure 2
Analysis of commercial management and sales through SWOT.
The fact that the service is only through representatives in person can be changed through the opportunity of using digital marketing, the customer have access to the product catalog in an interactive way, being able to view it at the most opportune moment of the day for him and to take questions through communication applications within the representative's attendance time The production process of the cosmetics company, is carried out in a pushed way, (Slack et al., 2020), where activities are dispatched through a central system and made according to the central instructions, but this process does not have a real-time follow-up of sales volumes and the constant comparison between the forecasted volumes and the realized volumes, which ends up leaving the company not competitive to the market, because the cosmetics industry is always prepared to make its products available, the pushed model being used without planning and control, can generate some disadvantages, as it is possible to see in Table 2.

Table 2
Main disadvantages pushed process.

Disadvantages
There is no communication between cases Overproduction High inventory and operational costs High probability of waste Strategic decisions need to be taken centrally, with performance monitoring and control (Christopher, 2005).Although there is the Production Planning and Control sector, where they verify what needs to be produced in which equipment and what quantities of materials are needed to make the products, there is no history of this control to assist in future decisionmaking in the coming months and years.There is also no follow-up on what has been achieved compared to what is planned.It is suggested that the company create methods of control in all the processes that it finds critical and impactful to the business.It is necessary to create a track record that manages data monitoring through indicators, with clear and well defined targets according to monthly variations, facilitating routine and strategic decision-making for the market.
Lack of supplier management has negative impacts on the financial and strategic aspect.
Without effective control of purchasing processes, monitoring performance becomes unfeasible.The bibliography studied indicates that the entire production or administrative process needs performance measurement to identify strengths and weaknesses and to act accurately in the organization, aiming at continuous improvement and excellence in results (Slack et al., 2006).In Figure 3, it is possible to verify the main impacts found.
The effects of a lack of management by suppliers directly affect the strategic objectives of the company.It is crucial to monitor supply chain resource performance and utilization so suppliers can assess and implement process improvements as needed, meeting required adjustments and rescheduling (Bowersox et al., 2014).In a competitive market where demand fluctuations are high, it is essential that the institution adopt this evaluation method (Slack et al., 2020).Figure 4 shows the negative impact that the causes listed in Table 2 have on deliveries and strategic objectives of the company.

Figure 3
Main causes and effects through lack of supplier management.

Figure 4
Negative influence of causes on company objectives.

CONCLUSION
The present study aimed to analyze the supply chain of a small company in the cosmetics and dermocosmetics industry, with the purpose of studying some of the impact factors of the management of this chain in the sales, production and management areas of the suppliers.The study presents a detailed and detailed analysis of the supply chain of a small company in the dermocosmetics sector, located in Belo Horizonte, Minas Gerais.The research, carried out through a single case study, adopts a qualitative and descriptive methodology, using on-site 13 visits, unstructured interviews and documentary analysis to collect relevant data.From this approach, the study provides a significant scientific contribution in several key aspects of supply chain management.
The SWOT analysis identified strengths, weaknesses, opportunities and threats present in the organization's sales process.
In the productive sector of the company was noted a technical deficiency in which consists in the lack of monitoring and control of production, due to the lack of suitability to the This supply chain case study and its impacts on the company identified points of improvement in the supply chain.Generally speaking, it is possible to observe through the analyzes carried out, the main impacts caused in the sales sectors, production process and suppliers, these consequences are directly and indirectly linked to the lack of control of the processes of the cited areas, preventing the company from reaching its strategic goals and being competitive in the market.Some proposals were made for mitigating these impacts, such as, using digital marketing, attracting new customers and loyalty, with strategic and competitive goals to the market, creating a data management system for greater control, creating performance indicators in sectors with tactical goals.
In addition, the study proposes concrete improvements to the company's management processes.Among the suggestions are the implementation of a data management system for greater control, the creation of key performance indicators (KPIs) to monitor the performance of suppliers and the adoption of digital marketing strategies for the attainment and loyalty of customers.These recommendations are practical and enforceable, providing a clear path for companies facing similar problems.14 The methodology used in the study, characterized by data collection through visits, interviews and desk analysis, demonstrates a robust and replicable approach.This model can be used in other industrial contexts, providing a solid foundation for future research in the area of supply chain management.The adoption of a single case study allows for an in-depth and contextualized analysis, contributing to a more detailed understanding of the specific challenges and solutions faced by the studied company.
From an academic point of view, the study expands the existing literature on supply chain management, especially in small cosmetics companies.It reinforces the importance of strategies such as production planning and control (PCP) and supplier management for the operational efficiency and competitiveness of companies.The research also highlights the relevance of tools such as the SWOT matrix for strategic decision-making, providing valuable insights for managers and academics.
Finally, the research has significant practical applicability, providing valuable insights for small business managers facing similar challenges.The proposed improvements could be adopted to increase competitiveness and operational efficiency, contributing to the sustainability and growth of companies in the dermocosmetics market.In summary, the study provides valuable scientific input by comprehensively and thoroughly analyzing a small business's supply chain, identifying failures and proposing practical improvements.This research not only expands understanding of supply chain management, but also provides a practical and applicable model for other companies and researchers in the area.
___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-16 | e08032 | 2024.6 2.4 SUPPLY CHAIN METRICS AND INDICATORS Performance measurement has evolved in five phases.Initially, it focused on the financial transaction of buying cheap, selling expensive, and making profit.With the Industrial Challenges and Strategies in Supply Chain Management: a Case Study in Dermocosmetics ___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-16 | e08032 | 2024.83 METHODOLOGYThe research is classified as a single case study, carried out in a small cosmetics and dermocosmetics industry, whose target audience are beauty salon professionals and which has about 50 collaborators.The study is qualitative and descriptive, focusing on the procedures and methods used in purchasing inputs, identifying critical points and problems.The collection of information took place through five visits conducted monthly throughout 2022.Data were collected via visits, interviews and desk analysis, allowing a triangulation of results.Findings on the processes were validated and the causes and effects were raised with proposals for improvements to sales management, production and suppliers.Sales are performed by representatives who visit the points of sale, presenting the products and finalizing the sales.The sales industry does not manage real-time sales forecasts, depending on the monthly close to pass information to the production industry, resulting in a production based on the previous month's history.Production is pushed, with the sales sector providing demand forecasts based on sales history and seasonality.Production Planning and Control (PCP) analyzes inventories and plans production without real-time tracking.Purchase orders for raw materials are issued on the basis of PCP analyzes.The production process includes weighing, handling, quality control, filling, labeling and shipping, with inspections and approvals at each stage.
productive volumes and adjustments to the volumes of raw materials needed, this control is necessary to know and analyze the strengths and weaknesses and act strategically.The study of performance indicators was conducted to analyze the management of suppliers of the institution.Second, the study highlights the lack of control in the processes of supplier management, production and sales.The identification of direct and indirect impacts caused by this lack of control reveals the importance of efficient management to guarantee the competitiveness and operational efficiency of the company.The research points out that the lack of real-time monitoring of sales volumes and the lack of constant comparison between planned and realized volumes result in an inadequacy of the required production volumes and raw materials.This discovery is critical for other companies looking to implement continuous improvements to their operations.

Table 1
Key indicators for supplier performance.
___________________________________________________________________________ Rev. Gest.Soc.Ambient.| Miami | v.18.n.8 | p.1-16 | e08032 | 2024.7 Reliability Average quantity of products available for purchase for a given period development.The most commonly used indicators to achieve efficiency and effectiveness in the supply chain are: cost, quality, speed, reliability and flexibility.