Challenge
Avon Cosmetics APAC Branch faced increasing challenges in its supply chain orchestration as a result of rotation in the planning department. Local supply chain management team was not mature enough to rebuild the planning fuction and stabilize the process to meet required global standard. Increasing costs of shortages and at the same time overstock led company management to seek aid from other regions.
Actions
Our planning expert moved to APAC and in addition to the day-to-day planning team management, undertook series of activities and conducted audit of company planning systems. These included: Conducting a thorough review of the existing planning processes and identifying areas of improvement. Addressing any inconsistencies in the company’s planning procedures. Providing training and guidance to the planning team members to enhance their skills and knowledge. Creating personal development roadmaps for both the newly hired planning manager and the team members to ensure their continuous growth and success. Collaborating with other departments to align the planning processes. Implementing performance measurement and evaluation systems to monitor and improve the team’s performance. Establishing communication channels and Product Life Cycle Management processes in line with global requirments. Within the project also knowledge gaps and company planning systems set-up errors were identified and addressed.
Results
Within 6 months team stabilized and no more team members replacements were needed. The better understanding of processes, proper planning systems configuration, and enforced Product Life Cycle Management process led to decrease of overstock by 4p.p. and increase in service level by 2p.p. within the project span as well as following 7p.p. improvement in overstock within the following 12 months after the project was concluded. Productivity measures for the planning team were implemented which enabled regional executive team monitoring over the usage of planning systems and timelessness of conducted planning activites. Demand & Supply Planning team remained stable over the period of folowing 3 years which enabled the company to focus on business priorities instead of fighting fires within its supply chain.
Short summary
The Avon Cosmetics APAC Branch faced supply chain challenges due to rotation in the planning department. The local team lacked maturity to stabilize processes and meet global standards. A planning expert conducted an audit, reviewed processes, and addressed inconsistencies. Within 6 months, the team stabilized, resulting in a 4p.p. decrease in overstock and 2p.p. increase in service level. The team remained stable for 3 years.