Avon announces progress on supply chain transformation initiative
The multi-billion dollar direct-selling...
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.
“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.”
Grupo Espinosa: 70 years of constant evolution
Founded in 1952, Grupo Espinosa has been relentlessly supporting the publishing industry with producing more than 100 million copies every year – whether its books, magazines, catalogues or single-order custom prints. No project is big or small for Grupo Espinosa, as the facility can scale up on demand and their turnaround times are highly competitive. Grupo Espinosa works with on-demand digital press or offset press, in paperback with glued softcover binding, PUR softcover binding, stitched paperback binding, binder’s board, hardcover, saddle stitched, Spiral or Wire-O. Equipped with the experience needed for a product to leave the plant ready for distribution, Grupo Espinosa delivers anywhere inside or outside Mexico. Traditionally starting off as a black and white printing press, Grupo Espinosa has experienced transformation first hand – from colour to digital offset printing. Currently, Grupo Espinosa is also looking at making capital investments into audio books to match with the increasing demand.
So how did a seemingly local operation in Latin America become a world-renowned printing facility trusted by hundreds of clients? As Rogelio Tirado, CFO of Grupo Espinosa for the last six years says “It all comes down to our market experience and our dedication to quality”. With nearly 70 years behind them, and located in Mexico City, Grupo Espinosa has two major locations – one spanning 75,000 square metres and the other about 45,000 square metres. Both locations are controlled by a single ERP (Enterprise Resource Planning) system ensuring speed, consistency and quality of work. Tirado says this isn’t their only competitive advantage. He adds “Our competitive advantage is the relationship we have with customers and the trust they put in us with their intellectual property”. Speaking of trust, global publishing giant Macmillan Education exclusively partners with Grupo Espinosa for their Latin America operations, as part of Macmillan’s decentralized hub strategy. Having a facility that offered the full spectrum of service – from storing digital content to printing and distributing – was one of the major requirements for Macmillan, and Grupo Espinosa was recognized as the leading printing hub for providing this 360 infrastructure. Another factor that has led to success for Grupo Espinosa is the absolute focus on quality and time. The staff are committed to providing the best quality in the best possible time, without causing wastage of resources. Sustainability is a huge factor playing into Grupo Espinosa’s operations, and they’ve created a healthy environment with the sustainable use of paper and energy resources as well as keeping their employees – most of them associated with the organisation for over 10 years – happy. He adds, “In order to be truly successful, you need to be good to the environment, employees, suppliers, and your customers. But most importantly, you need to be sustainable, you need to have proper working conditions, pay proper salaries, proper prices for paper, source the paper from sustainable sources, pay your taxes, basically be a good global corporate citizen and that's probably one of the biggest achievements that we have.”