Blue Yonder > Case Studies > Supply Chain Makeover

Supply Chain Makeover

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Company Size
1,000+
Region
  • Africa
  • Europe
  • Middle East
Country
  • Germany
  • Poland
  • United Kingdom
Product
  • JDA® Collaborate
  • JDA® Demand
  • JDA® Enterprise Architecture
  • JDA® Fulfillment
  • JDA® Market Manager
  • JDA® Master Planning
  • JDA® Monitor
Tech Stack
  • Supply Chain Management Software
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Customer Satisfaction
  • Productivity Improvements
Technology Category
  • Platform as a Service (PaaS) - Data Management Platforms
Applicable Industries
  • Consumer Goods
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Inventory Management
  • Supply Chain Visibility
Services
  • System Integration
  • Training
About The Customer
Avon is the world’s leading direct seller of beauty and related products, marketing to women in 143 countries through 4.8 million independent sales representatives. Avon’s well-known brands include Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques Hair Care, Avon Naturals, Mark and Avon Wellness. Avon also sells an extensive range of fashion jewelry, lingerie, fashion accessories and gifts. Avon’s products are sold with widely varying product offerings in different countries and through multiple channels including direct, Internet, catalog and outlets. Consolidation and globalization of both competitors and customers and the rapid growth of developing markets has also increased the complexity of the business.
The Challenge
Avon, the world’s leading direct seller of beauty and related products, markets to women in 143 countries through 4.8 million independent sales representatives. Avon’s products are sold with widely varying product offerings in different countries and through multiple channels including direct, Internet, catalog and outlets. Consolidation and globalization of both competitors and customers and the rapid growth of developing markets has also increased the complexity of the business. As a result, this highly promotions-driven market produces fluctuations in product demand and a complex supply chain. Although Avon’s operations expanded considerably in Europe, the Middle East and Africa (EMEA) in recent years, there was no single central planning function that was responsible for demand, inventory, and supply planning. Production planning at Avon’s three factories — in Poland, Germany and the United Kingdom — was highly manual, inflexible, unresponsive to customers’ requirements and could not support Avon’s planned growth into new markets.
The Solution
Avon licensed capabilities from JDA Software’s Manufacturing Planning and Intelligent Fulfillment™ solutions to implement across its global enterprise and to respond quickly and effectively to consumer demand generated worldwide. The implementation across 29 EMEA markets was completed in just four months. The JDA solutions collect supply chain information from Avon’s 29 markets. This data – inventory, future sales demands, transport schedules and sales history information — along with JDA advanced planning parameters provides Avon with a strategic distribution and manufacturing plan. Additionally, JDA provides Avon’s planners with a list of service risks, inventory imbalances and shipping requirements. All of which enables Avon to work collaboratively across borders and to streamline its order processing.
Operational Impact
  • Increased customer service rating to 99.5 percent
  • Reduced inventory levels by 17 percent
  • Achieved a savings of $20 million
  • Gained complete visibility of all aspects of the supply chain
  • Improved demand forecasting capabilities
Quantitative Benefit
  • Customer service rating increased to 99.5 percent
  • Inventory levels reduced by 17 percent
  • Savings of $20 million achieved
  • Complete visibility of all aspects of the supply chain gained
  • Demand forecasting capabilities improved

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