Challenge
The Avon Cosmetics APAC Branch faced supply chain disruptions due to high rotation in the planning department. Key issues included:
- Local team lacked maturity to rebuild and stabilize planning functions
- Rising costs from overstock and shortages
- Inability to meet global planning standards
Actions
A planning expert was deployed to APAC and undertook:
- Process Audit – Reviewed existing planning processes and identified inconsistencies
- Team Training & Development – Guided team members and created personal development roadmaps
- Cross-Department Collaboration – Aligned planning with other functions
- Performance Monitoring – Implemented KPIs and evaluation systems
- Product Life Cycle Management – Established processes in line with global requirements
- System Improvements – Corrected planning system set-up errors and closed knowledge gaps
Results
- Team Stabilization – No further replacements needed within 6 months
- Operational Improvements – Overstock decreased by 4p.p., service level increased by 2p.p. during the project, with an additional 7p.p. improvement in overstock the following year
- Productivity & Monitoring – KPIs allowed regional executives to monitor system use and planning timeliness
- Sustained Stability – Planning team remained stable for 3 years, enabling focus on business priorities
Summary
Avon APAC overcame supply chain challenges by:
- Conducting a full audit of planning processes
- Stabilizing the planning team within 6 months
- Reducing overstock and increasing service levels
- Maintaining a stable, productive team for 3 years
This project highlights the value of process audits, team development, and system improvements in stabilizing regional supply chain operations.