Avon International Leverages Blue Yonder’s AI Capabilities To Support Its Global Demand Planning, Production and Omni-Channel Strategy

The cosmetics industry is experiencing continued growth as consumers worldwide increasingly prioritize self-care and wellness. However, this growth has also led to a more competitive landscape, and companies must make strategic choices to differentiate themselves and maintain success in this dynamic market. That is why Avon International chose Blue YonderPlatform with Cognitive Demand Planning, Enterprise Supply Planning and Control Tower solutions to create an end-to-end next generation supply chain and support the company’s strategy and vision.

Avon International is a global beauty company operating in over 40 countries across Europe and Asia Pacific. The brand Avon has been in operation for over 135 years and has a business model based on relationship selling. Millions of independent representatives offer personalised beauty advice to their customers through offline and online channels. The brand is also accessed through wholesalers, retail stores and marketplaces.

Avon International was seeking to optimize its manufacturing and distribution processes in both Europe and Asia Pacific by establishing a "Planning Hub" for centralized demand and supply planning. To streamline demand planning, respond more quickly to their dynamic market and enhance decision-making, Avon International selected Blue Yonder’s flexible SaaS supply chain solutions, based on advanced artificial intelligence (AI) and machine learning (ML) capabilities.

“Avon International is committed to transforming itself to meet the needs of its customers, Representatives and partners while staying true to its business model and values. To support this global transformation across all channels, Avon International recognized the need for a more integrated approach to demand planning. After a thorough selection process, Blue Yonder was chosen for its comprehensive solutions and innovative capabilities that met all of Avon International’s needs. With Blue Yonder’s supply chain solutions, powered by leading-edge AI and ML capabilities, Avon International will be empowered to meet the changing needs of its customers, representatives, and partners in a profitable and sustainable way,” said Maciej Kaniowski, COO, Avon International.

The need to reduce inventory across the company has made accurate forecasting and efficient demand planning a business imperative. Blue Yonder solutions’ key differentiators include not only the robustness, experience, and scalability of ML forecasting, but also the extensibility and explainability of causal factors, that for Avon include campaigns, price, promotions, catalogue position, and seasonality.

These factors train Blue Yonder’s ML models to predict future demand. Blue Yonder’s explainability and scenario composable services help planners understand causal contributions and run simulations based on changes like price or promotions, resulting in superior accuracy, greater explainability, and improved decision-making.

Once the Blue Yonder solutions are implemented, Avon International will be able to drive supply chain process simplification and achieve the following benefits:

• Streamline operations with an integrated, end-to-end planning process for managing trends, demand, supply, inventory, and vendor collaboration.
• Surpass forecast accuracy and achieve improved planner efficiency with the configuration of Avon’s causal factors.
• Expand omni-channel capabilities and gain a competitive edge by forecasting and planning for all channels and offer types in one solution.
• Improve service levels and optimize cash flow with a comprehensive forecasting and planning solution that supports a centralized planning hub.

Avon International’s manufacturing supply chain operations in Europe and Asia Pacific are managed by Avon Operations Polska (AOP) and Avon Distribution Polska (ADP), with the backbone of their activities located in Garwolin, Poland. AOP manages the largest and most technologically advanced Avon factory worldwide. Cosmetics manufactured here are distributed to approximately 40 countries on three continents.

"We are thrilled to be a part of Avon International’s supply chain digital transformation. It is an honor to work with a company that shares our same commitment to values such as inclusion, women empowerment, and equity. The Blue Yonder solutions will enable Avon International to adapt to changing market conditions and external dynamics, ensuring their supply chain remains agile, sustainable, and competitive," said Terry Turner, president, Manufacturing, Blue Yonder.

Additional Resources:

• Learn more about Blue Yonder Cognitive Demand Planning
• Video: Next Generation Demand Planning with Cognitive Demand Planning
• Learn more about: Blue Yonder Solutions for Consumer Industries
• E-book: Improving the Supply Chain through Predictive Insight

About Avon

At Avon, we believe a better world for women is a better world for all. We are the beauty brand for women embracing their power, inspiring their confidence and providing opportunities to realise their potential. Millions of independent sales Representatives across the world sell iconic Avon brands through their social networks and more than 20% of every sale helps to create better futures for women*. We stand for progress for women: we believe in listening to women’s needs, speaking out about issues that matter and creating positive change. Through Avon and the Avon Foundation, we have donated over $1.1 billion, with a focus on tackling gender violence and breast cancer. Avon is part of the Natura &Co Group.
*Learn more at www.avonworldwide.com.

About Blue Yonder

Blue Yonder is the world leader in digital supply chain transformation. Global retailers, manufacturers and logistics providers leverage Blue Yonder to optimize their supply chains from planning through fulfillment, delivery and returns. Blue Yonder’s AI-embedded, interoperable supply chain solutions are connected end-to-end via a unified platform and data cloud, enabling businesses to collaborate in real time across functions, which supports more agile decision-making, improved customer satisfaction, profitable growth, and more resilient, sustainable supply chains. Blue Yonder - Fulfill your Potential™blueyonder.com

“Blue Yonder” is a trademark or registered trademark of Blue Yonder Group, Inc. Any trade, product or service name referenced in this document using the name “Blue Yonder” is a trademark and/or property of Blue Yonder Group, Inc. All other company and product names may be trademarks, registered trademarks or service marks of the companies with which they are associated.

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