GEP:Transforming Estee Lauder Procurement to Strategic Asset

Strategic partnerships are key to unlocking operational excellence. The collaboration between GEP and Estee Lauder exemplifies how innovative procurement solutions can drive transformation.

When Estee Lauder sought a procurement partner in 2019, it was looking for more than just transactional support. Mukund Acharya,Vice President of Consulting at GEP, recalls that the company was searching for a partner capable of providing sophisticated business analytics and expertise. 

"They found that their team members were focused more on transactional than on tactical work and they wanted us to centre our approach on that while they could have their team members prioritise the strategic aspects," Mukund explains.

The timing was particularly challenging, with the partnership launching in late 2020 amid the COVID-19 pandemic. The initial collaboration was entirely virtual, with team members spread across the United States and Costa Rica, unable to meet in person for almost 18 months.

Transforming technology and culture

One of the primary challenges was the implementation of Ariba, a procurement technology platform that was new to Estee Lauder. Mukund highlights the unique approach required, saying: "They're a non-mandated organisation. So culturally it's about bringing people along rather than forcing things."

The two-pronged strategy developed by GEP focused on improving tool adoption through comprehensive change management and leveraging business analytics to extract meaningful insights.

The partnership went beyond traditional support, diving deep into granular data — examining everything from perfume bottle spring mechanisms to labels, understanding supplier bidding patterns and uncovering pricing and volume trends.

The approach was remarkable in its depth. Mukund explains how GEP "broke this pricing down to the component level, sub-component and assembly level" to enable more informed decision-making about product costs and spend trends.

Mukund emphasises that the goal was always to support Estee Lauder's success. "As their business changes we've shown that we have a history of adapting to it," he states.

This flexibility manifested in numerous ways that showcase the depth of their strategic partnership. The team demonstrated commitment by providing comprehensive support across various procurement domains. They went beyond traditional boundaries, stepping in to cover roles when Estee Lauder's team members were on leave, embodying the spirit of a strategic partner.

The partnership's success transcends traditional procurement metrics. Mukund is particularly proud of how they transformed procurement from a transactional function to a strategic asset. Through meticulous data analytics capabilities, GEP enabled Estee Lauder to gain unprecedented insights into its supply chain, revolutionising supplier onboarding and management, creating a more integrated and intelligent procurement ecosystem.

Perhaps most notably, the team developed sophisticated procurement dashboards that turned raw data into actionable intelligence. Their approach was not simply about reducing costs, but about creating value through informed decision-making. As Mukund notes, for a luxury brand like Estee Lauder, the focus was on ensuring the right product and quality, not just saving every penny.

A forward-thinking partnership

As global supply chains become increasingly complex, the GEP-Estee Lauder partnership continues to evolve. Mukund emphasises their forward-looking approach: "We look forward, we see things from other clients, from other industries that we bring to their attention."

To read the full Estee Lauder report, click HERE.