Avon announces progress on supply chain transformation initiative

Avon Products has announced a number of key milestones as part of its supply chain transformation initiative.

The multi-billion dollar direct-selling business is in the midst of a supply chain transformation, which it says will result in greater flexibility and connectivity throughout its supply chain.

It is also aiming to deliver marked improvement in service quality as well as satisfaction and retention levels for Avon Representatives.

As part of the initiative, Rob Lowndes, currently Vice President, Global Fashion and Home, will assume the role of Vice President, Sales and Operations Planning (S&OP).

He will be responsible for matching objectives to new technologies, adopting an integrated value chain perspective in order to manage sales and more effectively order planning to improve product availability and service levels across Avon's global markets.

Avon is also utilising exclusive software to provide real-time sales planning visibility for representatives, enhancing their execution and delivery abilities:

In a statement, the company said: “Avon's next generation technologies allow for increased adaptability to demand volatility, a dramatic reduction in delays to service delivery, greater inventory and process efficiency, strategic resource allocation and end-to-end representative engagement.

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“Avon's exclusive demand planning software accurately forecasts representative and customer demand and synchronises Avon's ability to meet these demands by right-sizing inventory requirements across its supply chain.

“This unique new Machine Learning Model has gone live in all three of Avon's top 10 markets, after successful pilots in the UK, Russia and Mexico.”

Plans are in place for further roll-out to Avon's top 15 markets by early 2019, beginning with Brazil in November, with a longer-term goal of using this advanced technology to achieve a fully automated campaign planning process.

Jan Zijderveld, Chief Executive Officer, said: “We are making significant progress to our service supply chain, and these efforts are beginning to show results across the organisation, particularly with regard to Representative satisfaction and overall operational improvements.

“Through the application of targeted demand planning software, we are building a smarter supply chain that better understands the immediate needs of our representatives, and responds and reacts to them with greater efficiency and effectiveness.

“We look forward to benefitting from Rob's leadership as he advances our positive momentum in this crucial area. We are extremely focused on finding new and better ways for Avon to deliver the level of quality and service our representatives deserve.”