Avon: Leveraging Blue Yonder Capabilities to Ensure Success

The cosmetics industry is one experiencing continued growth as consumers based around the world increasingly prioritise self-care and wellness. 

Inevitably, however, this growth has resulted in a far more competitive landscape, with companies forced to make strategic choices in a bid to differentiate themselves and maintain success in this dynamic market. 

This goes a long way towards explaining why Avon International chose Blue Yonder, with its Cognitive Demand Planning, Enterprise Supply Planning and Control Tower solutions, to create an end-to-end, next-generation supply chain that would support the company’s overarching strategy and vision. 

Avon seeks to centralise demand and supply planning

Avon International is a global beauty company operating in more than 40 countries across Europe and the Asia-Pacific region. 

The wider Avon brand is almost 150 years old and is famed for its business model based on relationship selling, with millions of independent representatives offering personalised beauty advice to customers through offline and online channels. 

Looking to optimise its manufacturing and distribution processes in both Europe and the Asia-Pacific, Avon International sought to establish a ‘planning hub’ for centralised demand and supply planning. 

The business was attracted to Blue Yonder’s flexible SaaS supply chain solutions, based on advanced AI and machine learning (ML) capabilities, allowing it to streamline demand planning, respond more quickly to its dynamic market and enhance decision-making.

“Avon International is committed to transforming itself to meet the needs of its customers, representatives and partners while staying true to its business model and values,” explains Maciej Kaniowski, COO at Avon International. 

“To support this global transformation across all channels, Avon International recognised the need for a more integrated approach to demand planning. After a thorough selection process, Blue Yonder was chosen for its comprehensive solutions and innovative capabilities that met all of Avon International’s needs. 

“With Blue Yonder’ s supply chain solutions, powered by leading-edge AI and ML capabilities, Avon International is empowered to meet the changing needs of its customers, representatives and partners in a profitable and sustainable way.”

Why Blue Yonder stands out 

The need for Avon International to reduce inventory across the company has made accurate forecasting and efficient demand planning a business imperative. 

Enter Blue Yonder, whose solutions’ key differentiators include not only the robustness, experience and scalability of ML forecasting, but also the extensibility and explainability of causal factors. For Avon, these include campaigns, price, promotions, catalogue position and seasonality, which train Blue Yonder’s ML models to predict future demand.

Blue Yonder’s explainability and scenario composable services help planners understand causal contributions and run simulations based on changes like price or promotions, resulting in superior accuracy, greater explainability and, ultimately, improved decision-making. 

With Blue Yonder solutions are implemented, Avon International stands to:

• Streamline operations with an integrated, end-to-end planning process for managing trends, demand, supply, inventory and vendor collaboration  
• Surpass forecast accuracy and achieve improved planner efficiency with the configuration of Avon’s causal factors
• Expand omni-channel capabilities and gain a competitive edge by forecasting and planning for all channels and offer types in one solution
• Improve service levels and optimise cash flow with a comprehensive forecasting and planning solution that supports a centralised planning hub.

"We’re thrilled to be a part of Avon International’s supply chain digital transformation,” adds Terry Turner, President, Manufacturing at Blue Yonder. “It’s an honour working with a company that shares our same commitment to values such as inclusion, women empowerment and equity.

“Blue Yonder solutions will enable Avon International to adapt to changing market conditions and external dynamics, ensuring its supply chain remains agile, sustainable and competitive.”

******

Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and SupplyChain LIVE 2024. 

******

Supply Chain Digital is a BizClik brand.