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The Challenge
Avon is the world’s leading direct seller of beauty and related products, marketing to
women around the world through a global network of sales representatives, including
600,000 in the United States alone. Avon product lines include such recognizable
brand names as Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques
Hair Care, Avon Naturals, Mark and Avon Wellness. Avon also markets an extensive
line of fashion jewelry and apparel.
Part of the appeal of the Avon sales model is the company’s policy of “no questions
asked” on product returns. Representatives can serve their customers with the assurance
that their money will be refunded in full if a product is returned for any reason.
This policy is a big reason for the success of Avon’s sales model and has served them
well over the years.
In 2004, Avon became aware of challenges in their returns process that were making it
difficult to deliver on the “no hassle returns” promise to their sales associates. Returns
often took a long time to process and there was shrinkage and product loss throughout
the reverse logistics channel resulting in growing customer dissatisfaction. There
were also issues related to the company’s campaign-based pricing. It was sometimes
difficult to know for certain which price to apply to a refund when the product underwent
several discounts throughout the year.
The president of Avon, North America, determined that the company should invest in
a returns solution that would ease the process for the North American sales force. The
goal was to transform the reverse logistics process to dramatically improve representative
and customer satisfaction.
The Solution
Avon conducted a thorough search and selected Manhattan Associates’ Reverse
Logistics Management solution. The decision to go with Manhattan Associates was
made, in part, based on the flexible design of the solution. The problems Avon was
facing could be characterized as inbound and processing related. Avon decided to
implement the solution’s inbound functionality to solve the immediate customer-facing
issues and later deal with other returns issues within the returns processing facility.
Avon
Customer Success Story
Facts at a glance:
Number of U.S. sales 600,000
representatives:
Number of return 1
centers:
Size of return center: 120,000 square feet
Return center FTEs: 400
Annual returned 1.6 million
package volume: parcels
Annual returned units: 20 million items
Manhattan Associates Reverse Logistics
solution: Management
Avon Corporation Transforms
Reverse Logistics Channel with
Manhattan Associates
“The launch of Avon’s e-Z Returns
program through the use of Manhattan
Associates’ Reverse Logistics Management
solution has been a huge breakthrough
for our business. Returns had
been one of the top three sources of
sales force dissatisfaction—but not
anymore. Now, representatives receive
immediate account updates when
submitting credit requests and we have
complete visibility and control of the
returns shipment. This has truly been a
‘win-win’ situation—our representatives
now enjoy a greatly enhanced level
of service and our internal processing
efficiency has also improved with
the new program.”
Roosevelt Tolliver
VP of Global Business Transformation
Avon
Retail
www.manh.com
© 2006 Manhattan Associates, Inc.
The modular nature of Manhattan Associates’ Reverse Logistics
Management solution made this strategy possible.
The Implementation
Avon is now live with the Reverse Logistics Management
inbound functionality across the United States. Thousands of
Avon representatives routinely hit the YourAvon.com Web site
each day to conduct various aspects of their business, including
returns. Due to the “chameleon-like” nature of the Reverse
Logistics Management inbound component, it was easily
configured to match the look and feel of the parent Web site.
This is a common mode of deployment for Reverse Logistics
Management as it provides a seamless returns experience that
coordinates well with the parent Web site.
To initiate a return, Avon representatives search their prior
orders for the products they wish to return. Tight integration
with Avon’s Order Management System is the key to success
at this stage. Reverse Logistics Management is designed to
receive data feeds from numerous external systems. Displaying
prior invoices to the sales representative is the only surefire way
to guarantee that return quantities and prices match up with
prior purchases. This technique of invoice matching is unique
to the Reverse Logistics Management solution and provides an
added level of assurance that a fair and equitable returns policy
is maintained.
Once a representative has selected the items to be returned,
the Reverse Logistics Management shipping wizard allows the
representative to build a return shipment and print carriercompliant
labeling. Avon offers a choice of carriers via Reverse
Logistics Management—representatives can choose between
the SmartLabel® by Newgistics and standard UPS labeling.
Both are pre-paid by Avon and the shipping cost is deducted
from any refund due to the representative. With the SmartLabel
®, Avon representatives also have the convenience of simply
dropping the returned merchandise in a mailbox (versus having
to locate a UPS drop box.)
Once a scan occurs on a package, Avon takes full responsibility
for the return. Reverse Logistics Management constantly tracks
the scan events that occur during the trip back to the return
center. This limits the number of misplaced packages and the
return center typically has several days’ notice of the volume of
returns expected.
The Benefits
From the launch of the pilot phase of its e-Z Returns program,
Avon has received very positive responses from their sales
force. Detailed marketing clinics were held and first-time users
were polled on a host of questions regarding usability and
performance. The net result was a 90% approval rating, up from
40%. As the solution has been rolled out through a regional and
national launch, the level of satisfaction remains high.
Along with the accolades from a satisfied sales force, Avon is
also reaping the downstream benefits of a more streamlined,
automated returns process. A much higher percentage of
returned packages can be opened, scanned and processed
in record time—the new labeling immediately locates invoice
records and eliminates laborious manual searches. As a result,
the returns process—which previously took more than 60
days—now takes only seven days. Sales representatives receive
immediate credit on their returns whereas before, they had to
wait two weeks to receive a credit. Also, because Avon typically
knows return volumes days in advance, staffing can be managed
more effectively than in the past.
Avon expects the internal operating efficiency of their returns
center to increase at least 30% with the new solution in place.
The Future
As an increasing number of sales representatives use the Reverse
Logistics Management solution, the savings that accrue
to Avon will continue to grow—as will overall customer satisfaction.
Once Avon has fully deployed the Reverse Logistics
Management inbound functionality, it will begin designing the
solution for the rest of the returns process (the Reverse Logistics
Management processing functionality.) Avon is very pleased
with the success they’ve achieved so far with Manhattan Associates
and looks forward to future benefits as they further deploy
Reverse Logistics Management.
Avon is the world’s leading direct seller of beauty and related products, marketing to
women around the world through a global network of sales representatives, including
600,000 in the United States alone. Avon product lines include such recognizable
brand names as Avon Color, Anew, Skin-So-Soft, Avon Solutions, Advance Techniques
Hair Care, Avon Naturals, Mark and Avon Wellness. Avon also markets an extensive
line of fashion jewelry and apparel.
Part of the appeal of the Avon sales model is the company’s policy of “no questions
asked” on product returns. Representatives can serve their customers with the assurance
that their money will be refunded in full if a product is returned for any reason.
This policy is a big reason for the success of Avon’s sales model and has served them
well over the years.
In 2004, Avon became aware of challenges in their returns process that were making it
difficult to deliver on the “no hassle returns” promise to their sales associates. Returns
often took a long time to process and there was shrinkage and product loss throughout
the reverse logistics channel resulting in growing customer dissatisfaction. There
were also issues related to the company’s campaign-based pricing. It was sometimes
difficult to know for certain which price to apply to a refund when the product underwent
several discounts throughout the year.
The president of Avon, North America, determined that the company should invest in
a returns solution that would ease the process for the North American sales force. The
goal was to transform the reverse logistics process to dramatically improve representative
and customer satisfaction.
The Solution
Avon conducted a thorough search and selected Manhattan Associates’ Reverse
Logistics Management solution. The decision to go with Manhattan Associates was
made, in part, based on the flexible design of the solution. The problems Avon was
facing could be characterized as inbound and processing related. Avon decided to
implement the solution’s inbound functionality to solve the immediate customer-facing
issues and later deal with other returns issues within the returns processing facility.
Avon
Customer Success Story
Facts at a glance:
Number of U.S. sales 600,000
representatives:
Number of return 1
centers:
Size of return center: 120,000 square feet
Return center FTEs: 400
Annual returned 1.6 million
package volume: parcels
Annual returned units: 20 million items
Manhattan Associates Reverse Logistics
solution: Management
Avon Corporation Transforms
Reverse Logistics Channel with
Manhattan Associates
“The launch of Avon’s e-Z Returns
program through the use of Manhattan
Associates’ Reverse Logistics Management
solution has been a huge breakthrough
for our business. Returns had
been one of the top three sources of
sales force dissatisfaction—but not
anymore. Now, representatives receive
immediate account updates when
submitting credit requests and we have
complete visibility and control of the
returns shipment. This has truly been a
‘win-win’ situation—our representatives
now enjoy a greatly enhanced level
of service and our internal processing
efficiency has also improved with
the new program.”
Roosevelt Tolliver
VP of Global Business Transformation
Avon
Retail
www.manh.com
© 2006 Manhattan Associates, Inc.
The modular nature of Manhattan Associates’ Reverse Logistics
Management solution made this strategy possible.
The Implementation
Avon is now live with the Reverse Logistics Management
inbound functionality across the United States. Thousands of
Avon representatives routinely hit the YourAvon.com Web site
each day to conduct various aspects of their business, including
returns. Due to the “chameleon-like” nature of the Reverse
Logistics Management inbound component, it was easily
configured to match the look and feel of the parent Web site.
This is a common mode of deployment for Reverse Logistics
Management as it provides a seamless returns experience that
coordinates well with the parent Web site.
To initiate a return, Avon representatives search their prior
orders for the products they wish to return. Tight integration
with Avon’s Order Management System is the key to success
at this stage. Reverse Logistics Management is designed to
receive data feeds from numerous external systems. Displaying
prior invoices to the sales representative is the only surefire way
to guarantee that return quantities and prices match up with
prior purchases. This technique of invoice matching is unique
to the Reverse Logistics Management solution and provides an
added level of assurance that a fair and equitable returns policy
is maintained.
Once a representative has selected the items to be returned,
the Reverse Logistics Management shipping wizard allows the
representative to build a return shipment and print carriercompliant
labeling. Avon offers a choice of carriers via Reverse
Logistics Management—representatives can choose between
the SmartLabel® by Newgistics and standard UPS labeling.
Both are pre-paid by Avon and the shipping cost is deducted
from any refund due to the representative. With the SmartLabel
®, Avon representatives also have the convenience of simply
dropping the returned merchandise in a mailbox (versus having
to locate a UPS drop box.)
Once a scan occurs on a package, Avon takes full responsibility
for the return. Reverse Logistics Management constantly tracks
the scan events that occur during the trip back to the return
center. This limits the number of misplaced packages and the
return center typically has several days’ notice of the volume of
returns expected.
The Benefits
From the launch of the pilot phase of its e-Z Returns program,
Avon has received very positive responses from their sales
force. Detailed marketing clinics were held and first-time users
were polled on a host of questions regarding usability and
performance. The net result was a 90% approval rating, up from
40%. As the solution has been rolled out through a regional and
national launch, the level of satisfaction remains high.
Along with the accolades from a satisfied sales force, Avon is
also reaping the downstream benefits of a more streamlined,
automated returns process. A much higher percentage of
returned packages can be opened, scanned and processed
in record time—the new labeling immediately locates invoice
records and eliminates laborious manual searches. As a result,
the returns process—which previously took more than 60
days—now takes only seven days. Sales representatives receive
immediate credit on their returns whereas before, they had to
wait two weeks to receive a credit. Also, because Avon typically
knows return volumes days in advance, staffing can be managed
more effectively than in the past.
Avon expects the internal operating efficiency of their returns
center to increase at least 30% with the new solution in place.
The Future
As an increasing number of sales representatives use the Reverse
Logistics Management solution, the savings that accrue
to Avon will continue to grow—as will overall customer satisfaction.
Once Avon has fully deployed the Reverse Logistics
Management inbound functionality, it will begin designing the
solution for the rest of the returns process (the Reverse Logistics
Management processing functionality.) Avon is very pleased
with the success they’ve achieved so far with Manhattan Associates
and looks forward to future benefits as they further deploy
Reverse Logistics Management.