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Avon turns to AI for supply chain optimisation

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Beauty company Avon International has worked to streamline demand planning; respond more quickly to the market; and enhance decision-making with an advanced artificial intelligence (AI) and machine learning (ML) solution.

Partnering with Blue Yonder, Avon has establishing a “Planning Hub” for centralised demand and supply planning.

“Avon International is committed to transforming itself to meet the needs of its customers, Representatives and partners while staying true to its business model and values. To support this global transformation across all channels, Avon International recognised the need for a more integrated approach to demand planning,” explained Maciej Kaniowski, COO, Avon International.

“After a thorough selection process, Blue Yonder was chosen for its comprehensive solutions and innovative capabilities that met all of Avon International’s needs. With Blue Yonder’s supply chain solutions, powered by leading-edge AI and ML capabilities, Avon International will be empowered to meet the changing needs of its customers, representatives, and partners in a profitable and sustainable way.”

The need to reduce inventory across the company has made accurate forecasting and efficient demand planning a business imperative. Blue Yonder solutions’ not only offer the scalability of ML forecasting, but also the extensibility and explainability of causal factors that for Avon include campaigns, price, promotions, catalogue position, and seasonality.

These factors train the ML models to predict future demand. The explainability and scenario composable services also help planners understand causal contributions and run simulations based on changes like price or promotions, resulting in improved accuracy, greater explainability, and improved decision-making.

Learn more about Avon in an exclusive interview with Natalie Deacon, director corporate affairs and sustainability at Avon International, in the new RetailX Global Beauty 2024 report.

The report also includes an interview with Sephora where Alexandre Meerson, chief digital, data and technology officer, EMEA, explains its approach to omnichannel and personalisation.

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