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 E-Supply Chain   Case Study

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Smart planning and optimisation tools are helping Avon Products sharpen up its product supply lines.

Avon Products Inc is the world's leading direct seller of beauty and related products. Its 3 million sales representatives in 137 countries and its website - which attracts 400,000 visitors monthly - are the main factors behind its $5.3 billion annual revenues.

Avon sees an intelligent logistics system as fundamental to its success. An Avon customer can choose among more than 9,000 products. And customers expect quick delivery of the ordered items without errors and delays. The products range from cosmetics to articles on special offer, such as cookery ware or refrigerators. Anything from 2,000 to 40,000 orders are shipped per branch daily.

Every two or three weeks, Avon changes sales campaigns and 20-70% of the products are moved to better bin positions. The product mix is constantly updated and various product prices are also subject to special offers, which means a varying number of sales for every product during each campaign.

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International Consultants' Guide September 2000
Copyright © 2000 Prime Marketing Publications