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Avon International bolsters supply chain with AI

Sophie Smith
04 July 2024

Avon International is using artificial intelligence to enhance its supply chain and streamline operations in an effort to boost growth. 

The global beauty company has partnered with software firm Blue Yonder to implement an "end-to-end next generation supply chain" to support Avon International's strategy.

Blue Yonder claimed it will widen Avon’s omnichannel capabilities to "streamline demand planning, respond more quickly to the dynamic market and enhance decision-making".

The deal comes as Avon seeks to optimise its manufacturing and distribution processes in both Europe and Asia Pacific - where it operates in over 40 countries - by establishing a "planning hub" for centralised demand and supply planning.

The company hopes to 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 omnichannel 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.

Maciej Kaniowski, Chief Operating Officer at Avon International, said: "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 recognised the need for a more integrated approach to demand planning. With Blue Yonder’s supply chain solutions, powered by leading-edge AI and ML capabilities, Avon will be empowered to meet the changing needs of its customers, representatives, and partners in a profitable and sustainable way."

The news comes after owner Natura & Co said it was assessing the possible separation of Avon International into an independent publicly traded company as it attempts to unlock further shareholder value.

It was previously said that the structure of the potential transaction would result in two separate, standalone entities (Natura and Avon) with "unique business plans, independent governance and management teams better equipped to pursue more tailored strategies to drive long-term shareholder value".

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