If you are facing a huge growth opportunity, but it hindered because of the supply chain can not benefit from it, how would you do? Avon Products (Avon) the face of this troubling time, embarked on a fundamental reform, which is a high-risk attempt to ensure that benefits can not be.

     Avon is the world's leading distributor of beauty products, the annual turnover of 6.8 billion. In addition to cosmetics, skin care products, fragrances and personal care products, Avon has produced a wide range of gift items, including jewelry, women's underwear and fashion accessories. Through 3.9 million independent sales representatives to sell to consumers in 145 countries. Avon for more than 1.2 billion U.S. dollars annually in sales from its European area, the region, including Europe, the Middle East and Africa, 32 countries, with more than 100 million sales representatives. However, in the 20th century, 90's, this region is almost a strong growth trend in supply chain organization to make it collapse.

     Avon The initial focus is the marketing and sales for many years been neglected supply chain management. Recalling the 20th century, 80 years, in Europe, Avon just six countries have set up branches, each branch has its own factories and warehouses to supply the local market. These branches are operating independently, there are stand-alone information systems, there is no overall plan, and no joint production, marketing and distribution systems.

     This mode of operation in a small area to run very well. Each agency to the local demand for an absolute commitment to responsibility. But by the early 20th century, 90, Avon began to view the globalization of its key brands, and through introduction of new products, new packaging and advertising campaigns to change their image, to fight for a more younger consumers. Avon plans to double revenues of Europe, from 1996 to 5 billion dollars in 2001 to 10 billion U.S. dollars. Avon realized that the current country-based supply chain model to copy to each new market, high cost and difficult to operate. • Toth, executive vice president, Bob (Bob Toth) explained: "10 years ago we were a country by country to operate, using a power very decentralized management model. But now we can not compete in this way."