DHL Supply Chain Makes Estée Lauder's Logistics Operations in Brazil More Agile and Sustainable

• The company is one of the world's leading manufacturers and sellers of beauty products (skin care, makeup, and fragrances) and operates with brands such as MAC, Jo Malone London, The Estée Lauder and, Tom Ford Beauty, among others.
• The operation adopted electric cars driven by women for distribution in the States of São Paulo, Espírito Santo, and Rio de Janeiro, thus reducing the Company’s total emissions.
• The logistics plan included new cargo visibility tools, wider use of air transport and the employment of Rodo Expresso, which reduced delivery lead time.

The beauty market continues to grow and offer increasingly new products and options every day. Therefore, keeping stock levels - both in physical stores and for e-commerce - is a constant challenge, but one that leads to significant gains. This is what the project developed by DHL Supply Chain, a global leader in storage and distribution, shows for Estée Lauder Companies, one of the world's leading manufacturers and sellers of beauty products (skin care, makeup, and fragrances) which works with brands such as MAC, Jo Malone London, The Estée Lauder and, Tom Ford Beauty.

According to Giovanna Mauricio, Business Development Manager at DHL Supply Chain, “This project brings together interesting aspects. First, a large volume of distribution spread across different supply spots, which would be a significant challenge. Secondly, the review of transport plan to adopt new modes and technology made room for a significant gain in lead time. And finally, we have the issue of sustainability linked to diversity & inclusion, both from an environmental and gender diversity point of view. These aspects highlight the strategic nature of logistics and how it can add more value to business.” 

According to Rodollfo S. D. Bernini, Senior Logistics and Transport Manager of Estée Lauder Companies: “For Estée Lauder Companies, a business committed to the sustainability and efficiency of its processes, starting a partnership like this represents a key step towards an increasingly greener network and significant progress. We are happy to be able to combine sustainability in our deliveries with inclusion and diversity in our operations. We expect that this is just the first of many steps towards a more conscious beauty market that is perfectly aligned with the demands of its consumer public.” 

The new logistics plan developed by DHL Supply Chain was composed by three main objectives: adding sustainable value to the operation (a strong characteristic of Estée Lauder), reducing transport lead time, and greater visibility and reliability in deliveries. This market has an important characteristic: most deliveries to stores located in shopping malls and distributors must take place by Thursday to prepare the stocks for weekend sales peaks. In addition to the last mile, DHL also conducts transfers between the Distribution Centers for Estée Lauder products, in Espírito Santo, operated by an electric vehicle.

DHL Supply Chain has introduced the use of electric vehicles on some distribution routes in São Paulo, Espírito Santo, and Rio de Janeiro. This fleet is largely driven by women, which makes this area more diverse. It is estimated that, on average, these vehicles prevent the emission of 23.7 tons of CO2e per year, which is equivalent to planting around 3,320 trees.

Still in the transport area, DHL Supply Chain expanded the use of air transport, especially in the Northeast and North regions, and started using Rodo Expresso - a Road transportation solution with a lead time like air transportation that employs up to two drivers in each vehicle.

The DHL MySupplyChain platform is employed to monitor and manage the entire flow and provide end-to-end visibility over the cargo status. “Our entire interface with the customer is digitalized and based on pre-defined KPIs, which enables active management in almost real time, also allowing continuous operational development,” adds Fabiana Vilella, Director of Transport Operations at DHL Supply Chain.