Case Studies > Avon Calls on E2open for Better Supply Chain Performance

Avon Calls on E2open for Better Supply Chain Performance

Customer Company Size

Large Corporate

Region

America

Country

United States

Product

Connect2Avon
E2open Logistics Network
Collaborative Order Management
Collaborative Inventory Management
Collaborative Supply Planning

Tech Stack

Multi-Enterprise Cloud Connectivity
Purchase Order Collaboration
Inventory Collaboration
Supply Planning

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Customer Satisfaction
Waste Reduction

Technology Category

Platform as a Service (PaaS) - Connectivity Platforms
Application Infrastructure & Middleware - Data Exchange & Integration
Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Consumer Goods
Retail

Use Cases

Inventory Management
Supply Chain Visibility

Services

System Integration
Cloud Planning, Design & Implementation Services
Software Design & Engineering Services

About The Customer

New York, N.Y.-based Avon is a leading global beauty company with $10 billion in annual revenue. As one of the world’s largest direct sellers, Avon employs more than 30,000 associates worldwide and is sold through more than 6 million active independent Avon Sales Representatives. Avon products are available in over 100 countries, and the product line includes color cosmetics, skincare, fragrance, fashion, and home products, featuring well-recognized brand names such as Avon Color, ANEW®, Skin-So-Soft, and Advance Techniques. The company’s products are primarily driven through the Avon brochure, with nearly 50 million copies distributed every two to three weeks. Avon has a widely distributed supplier and sales base, short product lifecycles, and a constant flow of changing promotions that influence demand.

The Challenge

As Avon expanded globally, the company faced significant challenges in managing its supply chain due to a lack of centralized information across its global locations. This was exacerbated by the use of varied MRP and ERP systems in different regions, leading to inefficiencies in inventory and distribution management. The manual, ad-hoc planning processes were not supported by enterprise systems, resulting in varying service levels and a surplus of stock. Avon needed better engagement across multiple geographies and disparate platforms to achieve real-time visibility into supplier production availability and move towards collaborative planning and execution.

The Solution

To address its supply chain challenges, Avon partnered with E2open to develop a supply chain solution branded as 'Connect2Avon.' This solution aimed to replace inefficient legacy systems, reduce inventory sustainably, automate system-driven planning for goods and materials, reduce operational costs and obsolescence, and improve profitability and productivity. The system includes several functional components such as Multi-Enterprise Foundation, Collaborative Order Management, Collaborative Inventory Management, Collaborative Supply Planning, and E2open Logistics Network. These components enable seamless integration with backend systems, providing a single source of information for the entire Avon organization and facilitating collaborative planning and execution processes between Avon and its suppliers.

Operational Impact

Connect2Avon has provided Avon with complete visibility of material availability and constraints across its total supply chain.
The system's proactive exception management has worked to drive down risk, increase service levels, and enable faster and more informed decision support.
Avon now has fully supported, system-driven material replenishment and safety-stock methodology in place, which has enabled the company to lower inventory and increase adherence to its manufacturing schedules.
The solution has transformed Avon’s supply chain operations into a strategic tool, allowing the company to source more cost-effectively by leveraging spend across multiple facilities and regions.
Connect2Avon helps Avon control inventory on ramp down and product transitions by allowing better tracking of demand cycles as numbers change or dampen based on inventory levels.

Quantitative Benefit

Eighty percent of Avon’s beauty product line is manufactured in-house, with the remainder contracted out.
Eighty percent of the sales volume comes from online orders to the sales representatives, which translates into nearly 60,000 orders a day and 4 billion units sold annually.
At any given time, the company has 80,000 active SKUs with 38,000 new SKUs added annually.