Ding Dong! Avon’s Calling… for Streamlining of its Supply Chain
Avon is going back to its door-to-door roots – or at least the digital version. In an article published by Yahoo! Finance, cosmetics brand Avon Products, Inc., shares more on their “Open Up Avon” strategy. This plan primarily focuses on “…reviving the company’s direct selling business model, renovating the brand, enhancing e-commerce and other capabilities to aid a performance-driven transformation.”
Large corporations are on the road to becoming more efficient, innovative, and conscious of their impact on the world in regard to their business practices. This isn’t necessarily new information to most folks. But what is refreshing to see are older, well-established brands putting skin in the game. Avon knows the value of the personal touch – it’s been there before.
“Avon is grounded by our steadfast commitment to empowering women. Our ‘Open Up Avon’ strategy will enable us to provide more relevant earnings, contemporary products and meet the dynamic needs of women globally. While transformations of this nature take time, we are working hard and committed to executing on these strategic breakout priorities and building the Avon of the future.” – Jan Zijderveld, Avon CEO
It is through this plan that management expects a 25% decrease in SKUs and a 15% reduction in inventory levels. We see that an added benefit of this strategy is that Avon will see a reduction in their CO2 production and overall waste, which is what we’re all about at Noodle (check out our World Without Waste book).
We see it all too often; brands that no longer fight to keep up technologically and strategically are often cast to the side, resulting in lost sales and closed locations. We’re big supporters of company growth and are happy to see that Avon is making the moves to ensure its future, after all, we helped another global cosmetics brand save millions in lost inventory and discover many more opportunities for mitigating value at risk using our Enterprise AI apps.
Avon’s 2021 goals will surely help them reach their targets: expanding manufacturing and distribution, reducing certain facilities, and reallocation of internal investment to the tune of $300 million towards commercial, digital, and IT infrastructure projects.
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