Avon International taps Blue Yonder Cognitive Demand Planning, Enterprise Supply Planning, Control Tower solutions

Avon International has chosen Blue Yonder’s platform with Cognitive Demand Planning, Enterprise Supply Planning and Control Tower solutions as it looks to create an end-to-end next generation supply chain.

Avon International operates 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. It is also accessed through wholesalers, retail stores and marketplaces.  

Avon International was seeking to optimise its manufacturing and distribution processes in both Europe and Asia Pacific by establishing a "Planning Hub" for centralised demand and supply planning.

To streamline demand planning, respond more quickly to its market and enhance decision-making, it selected Blue Yonder’s 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,” says Maciej Kaniowski, COO, Avon International. 

“To support this global transformation across all channels, Avon International recognised 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.”

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 solutions are implemented, Avon International says it 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 optimise cash flow with a comprehensive forecasting and planning solution that supports a centralised 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 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 honour to work with a company that shares our same commitment to values such as inclusion, women empowerment, and equity,” says Terry Turner, President, Manufacturing, Blue Yonder. 

“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.”