Avon Supply Chain Model

This helped in having less inventory in different warehouses instead the inventory is gathered in Poland and prepared when the sales trends were clearer for each market. This strategy also included a part of customizing the bottle shape in order to increases the containerization capacity of the products and thus, reducing the cost of transportation. Another point was related to the focusing more on a shorter lead time to get the spare parts rather than a cheaper unit price. Avon also invested in involving their suppliers more in the manufacturing process and giving them a better image of the order and production pattern to deliver properly and this using even their website avon.com. Consequently, Avon took advantage of an end to end view of the supply chain to develop different strategies to improve their supply chain and improve their productivity and be more cost efficient.

Strategic Application in the Supply Chain 1) Supply Chain Strategy- Responsive 2) Operational Strategies * Procurement Strategy: Efficient * Manufacturing Strategy: Make To Order, Flexible * Warehousing Strategy: Centralized/ Hub-Spoke * Distribution Strategy : Pull * Marketing Strategy: Multilevel Marketing, Independent Representatives * IT Strategy: Web- based collaboration.