Supply Chain Makeover

Avon, the world’s leading direct seller of beauty and related products, markets to women in 143 countries through 4.8 million independent sales representatives. Avon’s products are sold with widely varying product offerings in different countries and through multiple channels including direct, Internet, catalog and outlets. Consolidation and globalization of both competitors and customers and the rapid growth of developing markets has also increased the complexity of the business. As a result, this highly promotions-driven market produces fluctuations in product demand and a complex supply chain. Although Avon’s operations expanded considerably in Europe, the Middle East and Africa (EMEA) in recent years, there was no single central planning function that was responsible for demand, inventory, and supply planning. Production planning at Avon’s three factories — in Poland, Germany and the United Kingdom — was highly manual, inflexible, unresponsive to customers’ requirements and could not support Avon’s planned growth into new markets.

Avon is the world’s leading direct seller of beauty and related products, marketing to women in 143 countries through 4.8 million independent sales representatives. Avon’s well-known brands include Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques Hair Care, Avon Naturals, Mark and Avon Wellness. Avon also sells an extensive range of fashion jewelry, lingerie, fashion accessories and gifts. Avon’s products are sold with widely varying product offerings in different countries and through multiple channels including direct, Internet, catalog and outlets. Consolidation and globalization of both competitors and customers and the rapid growth of developing markets has also increased the complexity of the business.