Product details

Avon Products Inc, the world''s largest direct seller of cosmetics and beauty-related products, began reviving its supply chain by the end of the 1990s. Over the last decade, the company had expanded into several markets launching more brands. It had also opened retail stores and on-line shopping portals. As it expanded into different markets, inefficiencies in its supply chain came to light as it had a tough time meeting the spurt in the demand. To counter the situation, Andrew Jung launched a Business Transformation Initiative in 1999, and later Lou Mignone was put in charge of the supply chain-specific initiatives. A major supply chain overhaul was undertaken, resulting in savings from each stage of the value chain. Inventory was centralised, supplier relations were strengthened and demand forecasting was automated. Supply chain overheads were cut down and the operating margins of the company improved. The case highlights the supply chain transformation initiatives of Avon Products Inc, in the light of increasing demand and facing the sophisticated global market arena. The case helps discuss how supply chain strategies, pertaining to subtle elements of supply chain can significantly help in improving the bottom line. A structured assignment ''305-018-4'' is available to accompany this case.