This paper is dedicated to the memory of Linda Anderson, research writer and well of wisdom. Avon's Transformation
Outline I. II.
Introduction Before and After A. Previous system 1. Asynchronous sales and production cycles 2. Product delivery delays B. Transformed system 1. Transformed supply chain includes a new distribution center in the Midwest 2. Representatives growing in number C. Representatives better able to match delivery with customers' orders.
III.
China will be a stand-alone business; North American and European markets will be integrated (Avon has announced that it will manage its operations in China as a stand-alone business, 2006)
IV.
Conclusion
Introduction Founded in 1886 as the California Perfume Company and in continuous operation since that time, Avon Products has been a public company since 1944 and finished 2007 at nearly $10 billion in sales worldwide (The Avon Story Unfolds, n.d.). With product sales flat or nearly flat within the US for several years, until recently Avon
focused on international sales and the expansion to new markets. It is not choosing now to ignore those markets, but it has transformed its global supply chain, which in turn has greatly assisted Avon's networking structure. Before and After Previous System In the past, Avon's sales and production cycles were very different. Avon issues a new promotion every three weeks, providing its 4.4 million representatives with ample opportunity to maintain regular contact with their customers (Tsao, 2007). Cohen and Roussel (2004) state that the short "selling cycle is a cornerstone of Avon's direct-sales model" (p. 2) in that representatives have a "reason" to contact customers. Rather than contact customers for no apparent reason, the short selling cycle provides representatives with the ability to inform customers of new products, new promotions or new items added to the ongoing list of those products "on sale"