Intro/Outro (00:03):

Welcome to Supply Chain. Now the voice of global supply chain supply chain now focuses on the best in the business for our worldwide audience, the people, the technologies, the best practices, and today’s critical issues, the challenges and opportunities. Stay tuned to hear from Those Making Global Business happen right here on supply chain now.

Scott Luton (00:32):

Hey, good morning, good afternoon, good evening, wherever you may be. Scott Luton and Kevin O. Jackson with you here on Supply Chain. Now welcome to today’s show, Kevin, how are you doing today?

Kevin L. Jackson (00:42):

You know what? I’m not too happy. My grass is starting to change colors to a brown. I better get out there and get some water on that grass.

Scott Luton (00:51):

Summer’s here, summer is

Kevin L. Jackson (00:53):

Here. They’re supposed to be getting a hundreds next week,

Scott Luton (00:57):

Steve. Well, it’s sizzling out where you are and it’s sizzling right here on supply chain now because we got a very hot episode here today. Hot discussion. Yes, we got a couple of dynamos from a global leader in the beauty product industry where we’re going to be diving into things, of course, supply chain leadership, change management, and especially one of my favorite topics here, how AI and the human workforce can be powerfully combined to do big things in the industry, all that and a whole lot more. So stay tuned folks for an informative, enlightening, and entertaining conversation. Well, a couple of wonderful leaders here today. Kevin, should be a great show, huh?

Kevin L. Jackson (01:29):

Oh yeah, absolutely. How can AI help beauty?

Scott Luton (01:35):

Oh, good stuff, good stuff. Hey, today’s episode is presented in partnership, of course, with our friends at Microsoft, who’s also doing some pretty cool things in the industry, helping to move us all forward successfully. More on that a bit later. Alright, so with that said, Kevin, let’s introduce our featured guests here today. We are very pleased to welcome Chiara Laudani, senior vice President, brand value chain with the Estee Lauder Companies and her colleague Florent, Guillet-Caillot, vice President, global supply chain strategy and transformation. Chiara, how are you doing?

Chiara Laudani (02:06):

Wonderful. I have the challenges summary start and I need to stay hydrated.

Kevin L. Jackson (02:12):

Oh yes. Stay hydrated, get your water. You know about being hydrated.

Scott Luton (02:17):

That’s right. And as we’re going to find out, it helps fuel those marathons that Chiara is running. But great to see you again. Really enjoyed our time together in Atlanta not too long ago. And Florent, it’s such a pleasure to meet you as well.

Florent Guillet-Caillot (02:29):

Nice meeting you. Really looking forward to that discussion.

Scott Luton (02:33):

We are too. So hey, on that note, before we get into the good stuff, Kevin, let’s get inspired by some of the cool things that Chiara and Florent are doing outside staying healthy, competing. So Chiara, as we talked about last time in Atlanta, you’re in the midst of running this six major marathons around the world. Tell us about that.

Chiara Laudani (02:55):

So yeah, that’s my little secret work life balance to just keep healthy and active and do and join. Happy with my husband and I confessed to Scott. I have a challenge before my 50. I want to run the six major or the six major marathon across the work. This is a good way to stay active and keep this sibling and at the same time to travel the work. So I have a New York upcoming now in October, and what is left is Boston and Tokyo. So I’m looking forward to run those too soon too.

Kevin L. Jackson (03:25):

Oh wow, that’s amazing. I used to do a lot of running, but my knees gave out on me a while ago. Hopefully

Chiara Laudani (03:32):

They won’t give up before my six major times.

Kevin L. Jackson (03:35):

That’s right.

Scott Luton (03:36):

Yes, we know they won’t. We’re going to think very optimistically and I can’t wait to see some of your pictures from the upcoming New York, Boston and Tokyo Marathon. So good stuff there. Chiara. Now Florent, we understand we’ve done our homework a little bit. You and Chiara both are competitive when it comes to running and doing things outdoors and stuff. Tell us about that, Florent.

Florent Guillet-Caillot (03:55):

Yeah, sure. I mean I’ve been running with Jha so there’s no chance I can compete against her on your long,

(04:02):

But obviously I love doing any kind of activities and I still remember the days when I got my first child and I was wondering, oh gosh, how will I basically keep that balance of doing some activities, looking after the kids and having a good family life and still going to work. And I remember that day where my wife was out doing some groceries and I said like, okay, I have a baby at home. What do I do now? I want to do some sport. And I put a sticker on the table on the dining table telling my wife, Hey, I’m done. I take the kid and I go, ready man. Basically how took the stroller and since then I bought another kind of stroller and we basically all kind of activities together with running, skiing, anything. So to me kind of a moral of a story routine is good, but to me it’s more about habits. How do you basically constantly adjust And that’s how I basically run and do activities those days as a family and not on my own any longer. Oh,

Kevin L. Jackson (04:59):

Flor,

Scott Luton (04:59):

Wow. I love that.

Kevin L. Jackson (05:00):

I visualize Florent running with the stroller down on the banks of the scene. Wow. Well

Scott Luton (05:08):

And also Florent, I love that you and Chiara have kind of set the bar for all of us when you get out there and maybe better manage our work life balance. But I love how you talked about the importance of habits and good habits and we’re going to talk about some great supply chain leadership and change management habits here today. So nice segue, is that okay Chiara and Florentand Kevin got a lot of good stuff to get into here, Kevin?

Kevin L. Jackson (05:29):

Yes, absolutely.

Scott Luton (05:30):

So care, let’s do this. I bet most of our audience, except maybe three people will know about the Estee Lauder companies and the prestige beauty industry that y’all are leaders in. But just for a couple of people out there that may not tell us if you would, let’s level set on a little bit about your company.

Chiara Laudani (05:47):

Estee Lauder Companies, the company I work for, so a lot companies, a company that was founded as the name say founder Tada. So I gave the name to the company and I always said this little nugget you see in the name of our company there is Tada company. So this is a reflection as we are a prestige leader across four different category, makeup, skincare, haircare and fragrance. And we are made by over 2025 at this point, brand led companies that they have all written very unique DNA heritage way to really target consumer consumer segment. But what they’re accommodated by is a common mission to really bring superior product that they are really delighting and they are favorite to our consumer. So this is make a very unique road for us in the supply chain to maintain the uniqueness but at the same time drive a leverage scale behind the scene.

Scott Luton (06:42):

Wow, Kevin, that is quite an ecosystem. Your thoughts there, Kevin?

Kevin L. Jackson (06:46):

Yeah, I can imagine all those different products, combinations, the customer set and segments that you’re targeting, that’s a huge challenge, especially as things change.

Scott Luton (06:58):

That’s right. And that’s why we are going to be diving into, because I’ll tell you there’s going to be lots of things I think we can learn from both Chiara and Florent in terms of supply chain, innovation, technology innovation and optimizing that customer experience, which is so critical. So folks stay tuned. Florent, if we could, now that Kia has kind of set the table and established that context about the Estee Lauder companies, what does the supply chain footprint look like at the organization?

Florent Guillet-Caillot (07:24):

I loved one of the words you just used, which is ecosystem. So to me I would describe our footprint as extremely diverse. So diverse in terms of geographical presence, diverse in terms of talent, and it’s an ecosystem. It’s an ecosystem of internal stakeholders and external partners and that’s the way I’m thinking about our footprint. When you think about, I would describe it as from the consumer to the consumer and in between you have so many steps. It’s like reading the consumer mind and turn that into an ID and then a product that you can deliver. And it’s not a one man show, it’s basically an ecosystem of talented employees and very engaged and committed workforce, passionate about our products but also external partners. And I use the word partners on purpose. We are all in it as an ecosystem and that’s the way I’m thinking about our supply chain ecosystem and footprint.

Scott Luton (08:29):

Florent, I love that Chiara,

Chiara Laudani (08:31):

One of the things that we have been real intentional is to broaden the ecosystem both internal and externally. Not only reaching to our consumer and retailer also on the app stage with our internal and external vendors for example, that they are expanding our supply chain footprint and definitely our overall agility response units, which as well Kevin was referring and I heard that remember we worked together other company. So App Florenthas been actually pioneering this in our company and really trying to strengthen the boundaries of this ecosystem.

Scott Luton (09:02):

Oh, I love it. Love it. Kevin, I’m going to come to you first though. I want to make sure we, one more level setting question is I’d love for Chiara and Florent to kind of tell us about their role and where they spend their time. And Kara, let’s start with you. Tell us about your role.

Chiara Laudani (09:15):

So this is a unique role I spent my prior life in p and g and walking into Tel other company was really diverse. We had multi-category, multi-brand with a very unique heritage that we wanted to protect. So my function as part of the supply chain, but at the same time it’s part of the brands. That’s why the name brand value chain play a real role of the orchestrator of bringing all the different stakeholder both from the commercial side into the value chain and vice versa. And I call it my role as the translator, maybe being an Italian leading playing my strength is really translating what really the value chain in service of the brand to really driving much more delightful consumer performance and experience, but at the same time making sure that the commercial partner and stakeholder really understand how we can strengthen the value chain responsiveness in our end. So both ways definitely a dialogue that goes both side.

Scott Luton (10:10):

Chiara, I love it, the translator, the orchestrator. I love your comments there. Florent, tell us about your role.

Florent Guillet-Caillot (10:16):

Yes, sure. I’m basically looking after what we call strategy and transformation. I rather describe it as strategy and value realization much more than transformation. And the reason why I’m saying that it’s all about crafting that vision for the foreseeable future for entire global supply chain organization, but more importantly turning it into tangible value for the business. And that’s the value realization part, which is super close to my heart. You need a strategy but you also need execution plans if you’re missing one of the two, to me it simply doesn’t work. So it’s how do you basically inspire the organization with some very ambitious plans, how do you think big but then how do you also get that started and scale and drive value for the organization? So I mean to some extent in a similar position as Kia in terms of orchestrating across the different functions, the different regions and the different brands and bringing that cohesion of the supply chain community in a state order.

Scott Luton (11:16):

Oh I love it Kevin, you know me, I’m a real practical person and I love how Florent talked about how passionate he is about that really important conversion between the vision to driving tangible value across a very talented ecosystem, especially their emphasis on the human factor, which of course you and I talk about all the time, but what’d you hear there in their roles Kevin?

Kevin L. Jackson (11:37):

I want to make sure everybody picked up on the aspect of being two way, both Florent and Chiara, they talked about supply chain, they talked about value chain, but most times you think about as sort of a one street, right? It goes from raw materials to production to distribution to the customer. But they both talked about the importance of it being two way, how they listen to the customer, how they listen to their partners, how they listen to the ecosystem. And I think that’s critical when you’re talking about value realization because a relationship has to be valuable to both sides of the transaction and I really like that.

Scott Luton (12:25):

Yes, all sides, the whole ecosystem’s got to find a way to win. Love that Kevin. Okay Chiara, you mentioned earlier we had a wonderful time at a recent Reuters supply chain conference. I really enjoyed and was inspired by our discussion and a lot of your thoughts you shared with the audience, we got a lot of feedback around that session as well. So as you think back, and I know you’ve moved several mountains probably since that time together, what was a couple of key takeaways from our conversations at the event here?

Chiara Laudani (12:50):

I think it was a rich discussion and we had a very really beautiful panel with us as well, other players and for me that there were three nuggets I really learned from them because I think these are discussion that they always bring your, add you more to the perspective that you already built throughout your personal experience. The first one, it was so clear, Scott, that post covid, we are really operating in a very different landscape and which then I think the big aha that was common across many industry, many categories, company that they play in a very different field and as well function is that we have to be closer to the consumer and the retailer but also faster. The second part of this discussion today with Ate is really about digital tools that they can help us to do that. So for me that was bigger, I was coming across and was great to share experience.

(13:35):

And the second side part, the human side system cannot operate and bring the level of monetization synchronization by realization. We just talked in the past few minutes alone, it has to be system plus people and I’m sure that that bring really the harmonization and synchronization which we’re targeting for and that’s why the digital twin twin, I always call the digital twin is also nice to system and people, system and human. So that was a lovely part. I think one of our additional panel that we just attended that was talking about the child that you have to nurture, which is in Bring the Eye, which I love it. So that was my probably takeaway that I’ll probably remember as lost.

Scott Luton (14:15):

Love that flore. I know which one of those sticks out for me. What about you Florent?

Florent Guillet-Caillot (14:19):

Building on what YA has said? I love that concept of copilot, copilot in the human and the technology and the way I’m thinking about it is to put the human, to have people-centric approach and then build technology, build tools, build processes together. It’s not one against the over, it’s not one before the over it’s how can we basically partner together and create that kind of magic combination magic outcome by partnering and moving away from that fear of technology. So I think it’s all about people centricity and all about collaboration between the people and the technology. And I love, without talking the Microsoft language, I love the concept of AI we need together and in some areas we human will be more advanced in the machine and some of machines will be more advanced than us. How can we work together? How can we partner

Scott Luton (15:15):

Love that Florent? And as an aviator, Kevin, I bet that co-pilot analogy works well for you, huh?

Kevin L. Jackson (15:21):

Oh yeah, absolutely. It’s all about finding synergy, right? And you mentioned fear, people will fear the robots, but now in our language we now have cobot, which is more of a synergistic viewpoint and it goes the same when it comes to thinking and working. You want that partner that’s working with you that’s synergistic that you can support and that they can support you. So that’s sticking in my mind.

Scott Luton (15:51):

Yes, that magical combo as Florent put it. I love that. Alright, so Kara in Florent and Kevin, one of my favorite takeaways from that discussion and it’s been a common thread in many discussions here in recent years, was the critical importance of hiring in investing in and developing digital talent to fuel competitive advantage, right? So Chiara, starting with you, your thoughts on that topic, the digital talent side?

Chiara Laudani (16:15):

Yes, I find an element that I love, as you said, we probably need to hire the right talent and bring that know out. Very nice. There is an element which I’ll deviate, which I love it that we do in LC that we call a reverse mentorship. It’s really bring the mentorship that come from the younger generation, much more digital savvy to maybe more of senior generation, which I’m joining now.

(16:41):

Those talent that we are bringing in as well, alo and building the right culture or digital culture and as well expertise to the higher ranking of the organization. So that’s one element that we have invested to really intention and LC. And secondly, I agree what you mentioned about the skillset is super important to bring talent iron but as well to make sure that those talent them are part then of the change management strategy. So they are made in and they are engaged in the transformation also not just as consultant but as a leader even at the younger generation

Scott Luton (17:15):

Here. What a great wonderful perspective there. Especially I love the reverse mentorship. Florent, what would you add when it comes to really hiring, investing in making all of that a deliberate part of your overall talent strategy, your thoughts there?

Florent Guillet-Caillot (17:28):

I think we need a good balance of depth and breadth and in those days we’re talking a lot about digital talent. I’m not so sure we have a common definition of what it means and I think we also need to put that in the context of our respective business needs. Then at the end of the day we also need to decide how do we access, do we build it in house, do we acquire it, do we borrow? I think that goes back to what is our strategy to basically acquire those very specific skills and technical expertise At the same time, I’m a strong believer of the need for our talent to have even more breadth in build their businessmen, build their ation skills. And it goes back to defining as that magic combo. To me that’s the same, how can you basically land the depth with a breath to make sure that those two population can talk the same language and can come with the best solution, shelf it for the business needs.

Scott Luton (18:28):

Well said Florent, I tell we in the whole series just focus on digital talent and I love Kevin how he started with defining what we’re talking about, right Kevin, your quick thoughts?

Kevin L. Jackson (18:38):

Well you know what everyone thinks when you think about talent and bringing on skills, many times you’re only thinking about current requirements, what current skills they have, what current talent you need. But it’s really important as you deal with change to have someone that’s talented in dealing with change. Because we’re in an era of constant change and digital transformation isn’t a onetime thing, it is a constant thing. So I’ll be interested in understanding how they view that as a skillset or as a talent dealing with constant change.

Scott Luton (19:17):

Yeah, no doubt we have our work cut out force both with the war for talent that’s out there, but also the impact of how transformation change disruptions, putting pressure on the current and future talent. One last thing I want to touch on care you made a great point before we move on. Reverse mentorship. There’s lots of finger point when it comes to all the different generations, but I think the beauty of having all these wonderful generations in our teams is we can learn something from all of them and I love deliberate programs where we really focus on mentorship, value exchanges, moving in all directions. So as a wonderful part of y’all’s deliberate strategy at Estee Lauder companies, so we’re going to keep going down this path of our focus on the human factor and I know that y’all doing a lot of cool things care as we talked about in Atlanta when it comes to artificial intelligence and you’re doing it I think from a little bit I’ve heard the right way because you’re investing and preparing and training your workforce prior to launching it here and there and everywhere and that’s so critical. Flo, let’s start with you first. Tell us how do y’all do that?

Florent Guillet-Caillot (20:19):

Yes, and again, to build off what we just said, I think that element of learning agility is key to me. We talk a lot about change, we talk a lot about transformation. To me, at the end of the day that simply the business we’re in, we can’t constantly say we are changing from one thing to another and we learn a very wide range of new programs. At the end of the day, that’s the world we’re in. That’s how we operate. So it’s how do we basically have that learning agility to constantly adapt. And one of thing that we’re doing, which also is very relevant in the context of ai, which is something relatively new, it’s not new but it’s relatively new in regards to the scale, but it’s the opportunity that and drive is to constantly flow resources to the work and we have that concept internally of flow to work as well as fast to action.

(21:09):

How can we deploy our top talent to support our top priorities? Which means that today I can work on the project in manufacturing and tomorrow I will be working on the project in quality and not necessarily that deep expertise, but I build that breadth and then I can apply the best technological solution to solve for it. So to me the concept of learning agility is just key empowerment those days and in the near future while acquiring skills and capabilities is we have plenty of tools to do that. Now if you have the agility or the curiosity to basically learn and acquire those skills, then it doesn’t work.

Scott Luton (21:51):

Well said agility doesn’t just happen, we got to invest and bake it into the organization. I love that Florent care. What would you add? How do y’all prepare and ensure the human factors ready to go as we enter in continuous improvement? Innovation oftentimes powered by artificial intelligence.

Chiara Laudani (22:08):

So I’ll address something that I think definitely we have adopted for as we introduces some of the digital tool with a few example on ai, but I think it resonate more or less for every single transformation. For me the biggest thing that we can provide, and this is across the level from leadership and the people that are driving the transformation, the first thing is clarity on the what that we want to initiate for example, specifically on ai, the how and the why. And I’ll give an example that I think Scott, we were referring to of course in the beauty industry, super important. We stay at the pace and we actually outpace on our competitor in term of innovation and speed to market. And this is important and where we actually strengthen our capabilities through ai. For example, sharpening our demand for cost security through statistical model, which is then generated by ai.

(22:58):

In this case of course what are we doing which is then really make sure that we have clarity on the forecast security in a innovation space, which of course there is newness. So there is a question and an incog already in itself. And the second is the how we’re doing. So leveraging historical statistical data that then can reach the future demand forecasting and why we are doing is super important that we balance the speed at the right cost. So it’s super important. We found that with that sweet spot. So that was just an example that we tried to bring this through and we made it very clear to our organization. So it’s not to our current demand planner but it’s enrichment. So that’s one. And the second one is Scott, for me, super important. We enter a new award that is made as well with digital tool. We continue, we learn, we always say right in everything we do in innovation is super important. We be small and we learn fast. So this is a perfect space to do that, to continue to iterate and build upon.

Scott Luton (24:01):

Oh, clarity and consistency, the beauty of clarity and consistency. I love that Chiara, Kevin, what’d you hear there?

Kevin L. Jackson (24:07):

Well, I actually heard a focus on the people and that’s critical. Whenever you’re doing change management, they need to know what’s in it for me and in short, so as long as you’re thinking about once again this two way street, you have to provide value to everyone. Everyone has to feel that this is the right thing and you have to take the time to explain to them why are you doing this and how you are accomplishing common goals. So you got it. You’re right on.

Scott Luton (24:43):

You teed us up. You’re reading my mind Kevin, because I’m talking about change management next and I love your emphasis there on the communication piece of that. So Chiara, I want to continue with you here. When it comes to change management, which seems like it’s always been important, but it seems like it’s a greater emphasis based on the velocity that so many organizations are operating at these days. What are a couple of key aspects to your approach when it comes to change management beyond the clarity and the consistency?

Chiara Laudani (25:08):

Chiara, I love it because we could call it and stay on the scene, maybe it’s my name, that despite that of the change management because to the consistent clarity, I would think that they are three important elements and they’re all human. The first one is commitment. I think it’s commitment across level, all level of the organization. Super important that the leader are walking the talk in the new space and there is a very clear personal engagement that transformation we’re trying to do. And then it’s very true for AI and many other we’re leading with today in the company. The second side is celebrate. So let’s have a measure of this new transformation, civilian AI and make sure that we celebrate the small successes. We talked about iterating. So as we measure progress, so let’s celebrate a tech moment because that will drive a cultural change across the organization. And the last one is obviously care. It’s super important. Change are always difficult. There is an empathetic side that need to come along, any strategy of change management. So you touched upon a little bit, make sure is super clear the why, what is it mean for me that person? So the kind of the human aspect, people should not feel threatened by any changes, but they need to see something that is coming along in that winning that transformation.

Scott Luton (26:22):

I love when we get good frameworks, wonderful frameworks here and you’ve just given us a new one, so really appreciate that. Florent, what would you add to your critical aspects of your change management approach?

Florent Guillet-Caillot (26:32):

I would maybe add few things to compliment what Chiara just said. One is, and as much as possible, every program is slightly different, but as much as possible bring those stakeholders and the impacted individuals along as early as possible so that it doesn’t come as a top down executive decision, but it’s basically a project where we are all in it together and then it should help for everyone to understand the why and what is in it for me. The other thing reality is be super honest and transparent and acknowledge things. Acknowledge that we don’t have all of the answers from day one, we don’t have a plan for everything. The plan will evolve. There will be a lot of ambiguity and I think we will need to learn how to navigate that ambiguity and how to be comfortable in navigating that ambiguity. I can remember of any single experience where we entered into a multiyear transformational program and we are all going to stick to the plan and these are stage gates and we are going to deliver it in full and we’re going to close it and celebrate. I’ve never seen that maybe somewhere. I’ve never seen that. No,

Kevin L. Jackson (27:42):

It doesn’t happen.

Florent Guillet-Caillot (27:43):

I think that even of being very honest, very authentic on saying, yeah, maybe we miss that gate, so be it. Let’s move on. Let’s not spend time. I mean we need to learn from the past, but we also need to look forward how do we course correct, how do we course correct fast and how do we adjust and constantly adapt as a team and be okay to navigate ambiguity and face uncertainty is to me also a critical, I would call it a soft skill, a critical mindset, critical behavior to drive some of those programs and make them successful.

Scott Luton (28:15):

Authenticity would the world cannot get enough of that. Kevin, your comment on what we heard in terms of their change management approaches?

Kevin L. Jackson (28:22):

Yeah, I’m sorry, maybe I sound like I’m coming from left field, but here we have Italian, we got French, we got English, and we got Georgian. But we’re all speaking the same language and that’s important when it comes to change management. Everyone has to speak the same language no matter where they were born. That’s

Scott Luton (28:44):

Right. And you know dispelling fear, right? They both spoke a little bit to that and that’s so critical. And Chiara, when we were together in Atlanta, one of the things I love that you said that I know is part of your mantra there is bringing along all the stakeholders together, leaving no one behind Chiara really quick. Would you expound on that?

Chiara Laudani (29:03):

Absolutely, and I love it because it’s important as we’re living this every single day these days and es lot companies, as we’re in the middle of a transformation, we aim to decomp, complexify we call it and modernize our way of working. So there is a major restructure plan that is undergoing, it’s super important. We make a stronger tomorrow. So it’s super important. All the stakeholder are very savvy and aware and they can input to the other part of the organization. Transformation. For me, the biggest enabler for sure is make sure what we share every single day that across all the different party of function, region and brand, we have shared the KPI on measure of success. How do we celebrate the success and how we measure success together is the single key and it’s super important as part of the engagement process. And then auto finalize the outcome for it. A little bit like we were mentioning Scott at that time we were in the pre Euro cup. We are in the middle of Euro cup since you were mentioning several, give me the analogy, Kevin, you give me the office, I have to do the

Kevin L. Jackson (30:10):

I love it. That’s great.

Scott Luton (30:12):

What I love more is your intent approach on decomp. Complexifying, the organization and what we’re set out to do. And again, in this environment where things are moving faster and faster and faster, how can we change how business is done, drive greater outcomes while taking care of the team and making it easier for them to have a successful day, day in and day out. Kevin, your quick comment there.

Kevin L. Jackson (30:33):

Yeah, I wanted to maybe pull a little bit on that fear string and we also talked a bit about ai, artificial intelligence. As AI becomes more and more part of business tierra, how do you prevent those saboteurs that try to leverage fear to slow down the change?

Chiara Laudani (30:56):

First of all, we have understand indeed the people are adverse to change so we can target exactly and bring them along. And we were talking about, we talked a lot about copilot comment and so on. The most important thing is taking the time to explain that there is no AI power without human power.

Kevin L. Jackson (31:16):

That’s good, that’s good.

Chiara Laudani (31:16):

There is an exponential value that human, that actually we can reverse it back. The eye cannot add to the human power, but never alone. So this is for me, one doesn’t diminish the other by just augment the power that human can bring along.

Kevin L. Jackson (31:33):

Love it. That’s good. I like

Scott Luton (31:35):

That. No AI power without human power. That is a wonderful quote from here in the last few months. Flo, I want to change gears here. It was announced that your organization, Estee Lauder companies would be expanding its global strategic relationship with Microsoft. What are some of the key outcomes that this enhanced partnership is expected to deliver and Florent, let’s start with you.

Florent Guillet-Caillot (31:54):

Yeah, so when we’re thinking about ai, the context of the escalator companies and supply chain within Este, we’re kind of trying to achieve few business outcomes. One which is around efficiencies. So where can we utilize AI to reduce time span and pass. Another one is around effectiveness. So how can we be more effective in targeting our consumers with our products? And the third one, which I think is also part of our DNA is how can we use AI to innovate, to create new ideas, to create new product, to create new ways of working. So we’re kind of thinking about AI to deliver on those free business outcome now to get there, and I was talking about the concept of the ecosystem to get there, we need to partner and we need to partner internally and externally. And that’s where some of the partnerships like D one we announced the other week with Microsoft comes into play.

(32:52):

So first we’ve been collaborating with Microsoft for years and years, but we basically want to take that partnership to the next level and really think big with them as they are the leading company in that space to basically help us leapfrog in some part of our business. So that’s one of the critical and foundational partnership that we are engaged with. But it also goes beyond the partnership with Microsoft. We also partner with academics, we partner with associations, we partner with our own colleagues. So it’s all about mobilizing that energy and that ecosystem all together to go after very specific and targeted outcome. We don’t want to go after everything we want, at least within supply chain as well to target few areas where we believe we can apply AI and we can drive what I would call speed to value so we can really leverage the power of a technology to drive business outcomes. And to me that’s the name of a game. To also move away from the suber, you were mentioning them, the champions, the ones will basically have raised their hand and say, Hey, I volunteer, I volunteer, I want to go, I want to pilot, I want to test, I want to scale, I might fail. But then they become the ambassadors, the champions in our organization to take those partnership to the next level and drive real value for our company and our business fear or

Scott Luton (34:23):

Not move forward. Well I heard there think big, go big, win big together with a big emphasis on that speed to value care. What would you add in terms of this big new enhanced partnership with Microsoft?

Chiara Laudani (34:37):

The element is exciting me the most, maybe as a consumer myself is a collaboration. We are doing setting up a DI innovation lab, specifically dedicated to leverage existing data library asset that they are exist internally, externally through the power of Microsoft core CI digital tool to bring local relevant trends, activation to market. This will be a massive unlock for us in the supply chain of course, that we enable to reach a leverage product, claim data that they’re already available in our corporate, which is made by 20 plus brand as we talked about. We have so much less, much more relevant to consumer that they are locally in different geography but as well in much faster speed. So this is definitely the element and I’m extremely inspired and I think it just formed the beauty industry. So we are really looking forward to driving definitely something unique here.

Scott Luton (35:37):

Chiara, I love it. It’s not just speed, it’s operating at successful speed and velocity. And I love y’all’s emphasis on that. Kevin, we heard a lot there from Florent and Chiara both own this Microsoft partnership, but also lots of other partnerships and new value they’re creating for the whole ecosystem. And of course our global consumers around the world which are so important customers rather. So tell us Kevin, quick blurb because Microsoft’s doing a lot of this stuff, powering these types of things across the retail space. Any additional thoughts there Kevin? Well

Kevin L. Jackson (36:07):

I want to sort of highlight the fact what’s foundational to everything that both Florent and Chiara have been saying is that two-way street she just mentioned with Microsoft, they’re going to actually identify local trends in order to drive product innovation. So that’s hearing, listening, interacting with your customers as part of your ecosystem, right, for

Florent Guillet-Caillot (36:34):

You are right on. I think at the end of the day now is the time to capture the value of ai. So we’ve been talking extens that technology now for couple of years and things really accelerated over the next 12 to 18 months. Good news in od, I mean before talking about ai, we started to commission AI in a number of our processes. Now is the time to accelerate and scale and to also drive the value and show the value that it can bring to the organization and then also to our consumers.

Scott Luton (37:06):

Love it. I wish we had a couple more hours with Chiara and Florent and Kevin here today, but we’ll have y’all back for sure. And Chiara, I’ll tell you as much of a dynamo as you are in person that we were able to see in Atlanta, you’re a dynamo virtually too. Also you’re quite the one two punch together, you and Florent. So Chiara, how can folks connect with you and the Estee Lauder companies

Chiara Laudani (37:28):

Multiple way? Of course, we look forward to communicate and publish this podcast and we look forward to hear any feedback and any input to what conversation is going through. We have several other digital tools as well through linkage and other social. So we look forward really the hear back and the power is actually tweeted from our consumer listener and keeping in person. So we are definitely building, we building on any feedback. So we look forward to many.

Scott Luton (37:56):

Oh, we do too. I can’t wait to get an update on all this cool things you’re doing and Florent, I’m assuming folks can connect with you across social and that company website and all.

Florent Guillet-Caillot (38:03):

Yes, for sure you can. And I would also encourage everyone to connect through our products. Yes. So I think that’s the best way to connect with the state order

Scott Luton (38:14):

And wide varieties we established on the front end from makeup, skincare, haircare, fragrance, and beyond. And the cool things you are doing to again optimize that powerful customer experience, especially in this light where, hey, as we’re all consumers, we’re very demanding, aren’t we? And you’ve got supply chain leaders that are stepping up and making it happen and delivering on that value proposition and brand promise. So big thanks folks. I hate to leave it here, but to all of our listeners and viewers across the globe, thanks for being here. Hope you enjoyed this conversation as much as I have. Big thanks to Chiara Laudani and Florent Guillet-Caillot with the Estee Lauder Companies. Thanks to both of y’all for being here. Big thanks to our cloud partners over at Microsoft as well, helping us to bring these wonderful conversations, ideas, inspiring ideas, I’d call it to our global audience. Kevin, always a pleasure to knock out these conversations with you.

Kevin L. Jackson (39:02):

No, no, thank you very much. I’d be remiss if I didn’t say that. I know Microsoft, we talked about copilot today, how they are elevating retail with copilot for retail, improving employee productivity and efficiency by harnessing the power of generative ai. So I really appreciate what the Estee Lauder company is doing and how they’re working with their entire ecosystem to move forward. And if you’re interested in learning more about digital transformation, just check me out on LinkedIn and on the supply chain now.

Scott Luton (39:37):

That’s right. Hey, you heard a pilot there talking about copilot. You got to take that to the bank and be sure to connect with Kevin L. Jackson. You can find him across social and tune into digital transformers with Kevin L. Jackson, wherever you get your podcast. Okay folks, again, hope you enjoy this episode. Be sure to find supply chain now, digital transformers, wherever you get your podcast. But there’s onus that you all have. Chiara and Florent brought it here today, really shared a lot of practical, innovative leadership and their leading by action, not words, right? So take one thing that our panels brought here today and put it into action. Your teams are ready. They’re ready to change a business, be more successful, and lean into what’s next. It’s exciting, right? So let’s lead by deeds, not words. So on behalf of all of our team here at Supply Chain now, Scott Luton, challenge you to do good, give forward, be the change that’s needed, and we’ll see you next time right back here at Supply Chain now. Thanks everybody.

Intro/Outro (40:29):

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