Estee Lauder Companies

Generally you can differentiate the supply chain or supply network of Estee Lauder Companies by two perspectives:

• The supplier side (a so-called Tier-1-supplier is a direct supplier, Tier-2 is a supplier of the Tier-1 supplier, Tier-n is a supplier at any level in the Estee Lauder Companies supply network).
• The buyer side (a so-called Tier-1 buyer is a direct buyer, Tier-2 is a buyer of the Tier-1 buyer, Tier-n is a buyer at any level in the Estee Lauder Companies distribution network).

To ensure business stability and continuity, a supply chain or supply network must be constructed in such a way that external influences can cause as little damage as possible to Estee Lauder Companies. This applies both in the area of procurement (the loss of a supplier must be covered by an alternative supplier) as in the area of sales (the loss of a buyer must be covered by an alternative buyer).

Risks can generally be considered as the non-availability of goods, through cutback or complete halt of production, or the potential loss of business partners, violating compliance rules (e.g. protection of the environment, labor legislation) and thus drop out of the supply network.

This risk should not necessarily be limited to the direct business partner (Tier 1), it involves the entire supply chain, unless sufficient alternative suppliers and buyers have been put in place.

Get an overview of the international supply chain of Estee Lauder Companies (upstream/procurement and downstream/sales) from Tier-1 to Tier-n

E.G.: Tier-1 Buyer Elca Cosmetics Pvt. Ltd.

ABRAMS world trade wiki not only shows direct suppliers and customers of the first tier (Tier-1). With just one click in our tool Supply Chain Intelligence you get a comprehensive insight into the supply network with multiple tiers (Tier-n) beyond the first tier.

Each tier in the supply chain or supply network on the supplier side of Estee Lauder Companies involves a single risk. The more tiers, the more difficult it is to analyze and monitor the business partners. Suppliers of suppliers are generally unknown, so there is already an increasing risk at the second (Tier 2) level.

If e.g. a first Tier supplier is not adding any value, the supply chain can be shortened and the risk of failure can be minimized by skipping this supplier. A previous Tier-2 supplier now turns into a Tier-1 supplier, which we call "go-direct". In our tool Supply Chain Intelligence as far as international suppliers are concerned, this analysis can be done with one click:

Analyze the potential of shortening and therefore stabilizing the supply chain of Estee Lauder Companies

Based on the analysis of international bills of lading (bill of lading/ bills of lading/ BOL), a total of 13 different product categories that have been purchased by Estee Lauder Companies, can be identified.

These are classified by means of HS codes (HTS codes or customs tariff numbers).

For example, HS code 330499 classifies the following products:

„Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), incl. sunscreen or suntan preparations (excl. medicaments, lip and eye make-up preparations, manicure or pedicure preparations and make-up or skin care powders, incl. baby powders)". This HS code was sighted 5 times in total.

Get an overview of internationally purchased products by Estee Lauder Companies with Company Transparency

The performance of a company depends fundamentally on its buyers. Therefore, a largest possible base of stable buyers is crucial. A total of 13 international buyers of Estee Lauder Companies could be identified in bills of lading. For example, one of the buyers is the company Elca Cosmetics Pvt. Ltd., which has received 1 shipment.

Among 5 identified buying countries, an important target country to sell products to is: Botswana. 261 shipments of goods were shipped to this country in the period covered.

Get an overview of the international sales and its 13 buyers of Estee Lauder Companies with Company Transparency.

Based on the analysis of international bills of lading (bill of lading/ bills of lading/ BOL), a total of 66 different product categories sold by Estee Lauder Companies, can be identified.

These are classified by means of HS codes (HTS codes or customs tariff numbers).

For example, HS code 330499 classifies the following products:

„Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), incl. sunscreen or suntan preparations (excl. medicaments, lip and eye make-up preparations, manicure or pedicure preparations and make-up or skin care powders, incl. baby powders)". This HS code was sighted 172 times in total.

Get an overview of internationally sold products by Estee Lauder Companies with Company Transparency

Each tier in the buyer side of the supply chain or supply network of Estee Lauder Companies is adding value and therefore costs. The more tiers, the more expensive the product gets. Supply chains are normally not very transparent, trade secrets are part of the survival tactics in each stage of the value chain, especially for trading companies.

If e.g. a Tier-1 buyer from Estee Lauder Companies that primarily trades products and doesn’t add any value (only fulfills the distributor function) it is possible to shorten the supply chain downstream giving a potential to optimize profit margins for Estee Lauder Companies. A previous Tier-2 buyer now turns into a Tier-1 buyer, which we call "go-direct". In our tool Supply chain Intelligence as far as international buyers are concerned, this analysis can be done with one click:

Analyze the potential to shorten the supply chain and optimize the profit margins on the sales side of Estee Lauder Companies

Each company contributes significantly minimizing risks for its buyers, through its own stability. Internal risks (endogenous factors) can be e.g. financially (financial ratios, free cash flow, balance sheets) or operationally (production, lead times). Since 2021, external risks have increased due to worldwide shortages and are an important factor as to whether a supplier such as Estee Lauder Companies can itself reliably deliver due to external dependencies (exogenous factors).

To assess this, data analysis should be conducted to get practical answers:

Which buyers does Estee Lauder Companies consistently sell to over a long period of time that can be identified as a good reference?

The more constant outgoing shipments of a company’s, the easier it is to assess potential problems for a supplier like Estee Lauder Companies

Operational aspects like a stable supply chain, an in-house production and reliable logistics define sustainable performance.

Since 2021, global supply shortages have increasingly added external factors as to whether a supplier like Estee Lauder Companies can deliver reliably itself through dependencies.

Based on the statistical trend of shipments (in terms of the number of shipments and respectively the quantity of goods) the current supply and performance capacity can be indirectly analyzed.

Here you can see an analysis of shipments by Estee Lauder Companies to international buyers in the last few months with Company Transparency

Sourcing products as regionally as possible with short shipping routes and the use of sustainable materials define the CO₂ footprint and sustainability of the products of any company, including Estee Lauder Companies

After many companies, predominantly due to cost savings, have been building their networks increasingly internationally for years, there is now an increasing trend of so-called “on-shoring” or “near-shoring”. Attempting to include suppliers who are the closest to the supply chain because of financial, risk, environmental and image aspects:

• Saving international freight costs, which have risen extremely since 2021.
• Minimizing risks caused by logistics problems (e.g. the Suez Canal obstruction in 2021)
• Attempting to reduce the carbon footprint when purchasing products.
• Setting and meeting sustainability goals for own products of Estee Lauder Companies

Based on the development of current shipments (in terms of number of shipments and quantity of goods) and changes in international suppliers and routes, it is possible to analyze the extent to which Estee Lauder Companies has already made efforts in recent months and years, to focus on environmentally relevant aspects, like carbon footprint and sustainability in its business activities.

Get an overview of the international shipments that have an impact on the CO₂ footprint, as well as the sustainability of Estee Lauder Companies

Generally you can differentiate the competition of Estee Lauder Companies by the purchase and sales perspective.

• Start the competitive analysis on the purchase side.
• Start the competitive analysis on the sales side.

Competitors of Estee Lauder Companies on the purchase side (procurement of raw materials and components for production or distribution) are exposed on ABRAMs wiki under Competitive Intelligence, purchased products, classified by HS-Codes (e.g. 330499, 330420) or by top product terms.

Competitors on the sales side of Estee Lauder Companies (selling raw materials or components for production or distribution) are exposed on ABRAMS wiki under Competitive Intelligence, sold products classified by HS-Codes (e.g. 330499, 3303) or by top product terms.