Estee Lauder uses blockchain to boost supply chain traceability

Company will track products using vanilla from farms to end sales from Spring 2021

The Estee Lauder group of companies will trace vanilla products across the whole supply chain via blockchain technology provided by blockchain scale-up Wholechain in a proof-of-concept trial.

Wholechain uses QR codes to communicate the information stored. Approximately 450 smallholder farms in Madagascar are involved in the pilot project in partnership with natural ingredients supply chain partner LMR Naturals by IFF, local Madagascar vanilla supplier Biovanilla and global sustainable business partner BSR.

The company claims this is one of the largest blockchain pilots in the beauty product sector.

Sales of products using vanilla sourced this way will go on sale in spring 2021. 

As well as boosting supply chain traceability, the company hopes the system will enable better prediction of price fluctuations and weather patterns.

It is also hoped farmers will receive pay and training to encourage the adoption of more sustainable practices

“This new investment supports The Estée Lauder Companies’ efforts to continuously improve and strengthen our sourcing practices while remaining sensitive to the local communities in which we operate,” said Greg Polcer, Executive Vice President of Global Supply Chain at The Estée Lauder Companies Inc. “Blockchain technology adds an extra layer of transparency to our sourcing practices, verifying our vanilla supply chain’s compliance with the highest ethical and environmental standards, and strengthening trust with our suppliers, consumers and investors.”

comments powered by Disqus