Serial beauty products manufacturer Estée Lauder to integrate blockchain for supply chain efficiency

Estée Lauder, an American beauty brand integrates blockchain technology for efficient supply chain management.

By · Oct 24, 2020 . 6min read

Estée Lauder to integrate blockchain news

North-American manufacturing giant of several beauty products like skincare, makeup, fragrance and hair care products, Estée Lauder Companies turns to blockchain technology to help streamline its supply chain.

According to a recent publication by Edie, Estée Lauder Companies is already running a pilot program with a blockchain startup Wholechain to help better its supply chain traceability alongside other 450 smallholder farms.

Estée Lauder Companies sources raw materials like vanilla, among other raw materials for manufacturing its line of products. Usually, before the blockchain pilot test, Estée Lauder tracks its vanilla using stamps embossed directly onto the bean. However, this does not guarantee that the stamps cannot be tampered with or have some of its information missing. In this case, the introduction of blockchain helps digitize the tracing process.

In conjunction with Wholechain, Estée Lauder Companies will use QR codes to help communicate the information stored using blockchain. This allows the raw material sourcing company, users (product buyers) and everyone across the value chain.

“With blockchain, we now have a direct connection to our farmers in Madagascar, providing us, our salon partners and our customers more transparency into our supply chain. This transparency is of utmost importance to us as a brand, and we are proud to give our network visibility to the positive impact that, ultimately, they are having on this local community.”

Barbara De Laere, Aveda’s Global Brand President

Beyond traceability to guarantee authenticity, Estée Lauder Companies to use blockchain for predictive planning.

Moreover, blockchain technology plays myriads of other functions like using for predictions, Aveda will be using it for other purposes. For instance, factors like fluctuations in weather and commodity prices. With decentralized ledger technology, it will also ensure farmers receive the pay and training needed to adopt more sustainable practices. 

Estée Lauder and her husband Joseph Lauder established the company in 1946 in the city of New York. Since then, it went to become one a conglomerate owning several other companies. Summarily, Estee Lauder’s portfolio of companies includes Clinique, Bobby Brown Cosmetics, La Mer, MAC Cosmetics. Lastly, Tom Ford Beauty, a collection of fragrances and cosmetics by Tom Ford, beauty and fashion designer is also included.

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