Strategic Supply Chain Management for Avon
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â?¢ Review "AVON profile: Calling on Customers Cost-Effectively" on pages 91-100. (Refer to this link http://lvk.cs.msu.su/~antiw/McGraw-Hill.Strategic.Supply.Chain.Management.The.Five.Disciplines.For.Top.Performance.ISBN0071432175.pdf)
â?¢ Describe the problems and risks Avon faced in the supply chain prior to their transformation, and respond to the following questions:
â?¢ What was Avon's greatest barrier to growth?
â?¢ What was the underlying cause of the barrier?
â?¢ Did Avon have a second-tier supplier in the event of a supply failure in the system?
â?¢ If not, how could that affect Avon's supply chain?
â?¢ Describe how Avon mitigated those risks and resolved those problems to develop a more effective and efficient global operations and supply chain process, and respond to the following question:
â?¢ How did Avon resolve the barriers related to growth?
â?¢ Assess the advantages of viewing a supply chain on an end-to-end basis, and respond to the following questions:
â?¢ How does the Avon case demonstrate the advantage of viewing a supply chain on an end-to-end basis?
â?¢ Is end-to-end another way of looking at the supply chain as system?
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Solution Summary
The write up gives a learned discussion on AVON profile
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Step 1
Avon faced a number of problems and risks related to its supply chain prior to its transformation. These problems included a very long supply chain cycle and a short selling cycle. There was a mismatch. There was also the problem of large unsold inventories, as production was carried out on the basis of forecasts. The production was unresponsive to changes in the demand in the market. Also, the cost of changeover from one production to another was very costly. Finally, language variants caused large stocks of preprinted containers to be wasted.
Step 2
The greatest barrier to Avon was its supply chain. The underlying cause of that barrier was that the supply chain had a mismatch between the supply chain cycle and the selling cycle. The selling cycle was only three weeks whereas the supply chain cycle was twelve weeks. This led to several problems, if a product was successful and more could be sold the company could not respond with additional stocks because it took another twelve weeks to order, make, and deliver fresh stocks to ...
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