Jung's strategy
...er the Web," says Kropf. By yearend 2002, she says, "that will be up to around 50%." "My focus is on developing a short supply chain and risk management, while also trying to generate as much leverage as possible. Three years ago we were more globally focused," says Furuta. "Now we concentrate on a shorter supply chain overall systemic supply chain savings Commitments are made carefully because "our suppliers are extremely important to us because of the volatility in our demand. The second thing," adds Furuta, is "we depend on them for innovation. Our R&D people are excellent, but we synergize with what suppliers can do for us." In some cases suppliers may take new ideas directly to Avon's R&D department, but eventually they must go through purchasing, which negotiates all terms and conditions. "We do work together," adds Furuta, "to determine what level of business to give to a supplier." Suppliers are expected to provide innovation that allows new product development, enhancement of current products, or improvement of costs. Asked for examples of creative ideas from suppliers, Furuta comments: "Let's take shampoos. If a vendor has a surfactant that is inexpensive and requires a smaller amount than is normally used, that's a benefit." Avon's Supply Chain architect Lou Mignone, group vice president, joined Avon in August 2001 and is the architect of a US Supply Chain strategy focused on integration of order processing to order fulfillment, leveraging of synergies, and adoption of best practices. Under his leadership, a goal was established to save $100 MM in Supply Chain costs in 1000 days, a reduction of $100 MM in inventories, and a significant improvement in service to the representatives. (ù¹ø¹®Á¦Supply chain, cost reduction) Anti-aging products demand in the US will grow 11.1 percent annually through 2007, propelled by a stream of new and improved products that offer health and appearance enhancing benefits. Fastest gains are projected for memory improvement and sexual dysfunction/impotence products, while botulinum toxin and pharmaceutical active ingredients lead gains by chemical. This study analyzes the $17 billion US anti-aging products industry. It presents historical data for 1992, 1997 and 2002 and forecasts to 2007 and 2012 by type (e.g., bone and joint care, menopause, sexual dysfunction/impotence, memory improvement, vision care, prostate care, aging skin care, hair loss); and by chemical (e.g., pharmaceutical active ingredients, hormones, vitamins and antioxidants, herbal extracts, glucosamine, botulinum toxin, minerals, proteins). It also profiles industry competitors and presents market share data. Avon is the world's leading direct seller of beauty and related products, with $5.2 billion in annual revenues. Avon markets to women in 135 countries through 2.8 million independent sales representatives. Avon product lines include such recognizable brands as Anew, Skin-So-Soft, Avon Color, Far Away, Rare Gold, Millennia, Starring, Avon Skin Care and Women of Earth. Avon also markets an extensive line of fashion jewelry, apparel, gifts and collectibles. More information on Avon and its products can be found on the company's award-winning website http://www.avon.com. The newest vendor shop in JCPenney and Sears stores may be one for that notorious non-in-store merchant, Avon Products. The purveyor of women's beauty and related products, which has done $5.3 billion a year selling exclusively through 3 million sales representatives in 137 countries, has confirmed that it is in negotiations with the two huge retail organizations. O...