CASE STUDY

GEP led a data-driven procurement partnership with Estée Lauder, helping the iconic luxury brand shift from tactical operations to strategic insight

Strategic partnerships are key to unlocking operational excellence. The collaboration between GEP and Estée Lauder exemplifies how innovative procurement solutions can drive transformation. When Estée 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 Acharya, Vice President of Consulting at GEP

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 Estée 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.