Avon has partnered with logistics technology firm Blue Yonder to incorporate AI into its supply chain.

Blue Yonder, founded in 1985, develops software that uses artificial intelligence (AI) and machine learning (ML) to optimise supply chains by predicting factors such as customer demand and delivery dates.

The cosmetics giant says that Blue Yonder’s software will allow it to expand its omnichannel capabilities, as well as to increase its forecast accuracy and achieve improved planning efficiency.

The news comes after Avon recently committed to creating a “planning hub” in Europe and Asia Pacific for its supply and demand planning.

Most of Avon’s supply chain operations in the two continents are based in Garwolin, Poland. Goods produced in town are then shipped to 40 countries across three continents.

Blue Yonder was acquired by Japanese manufacturer Panasonic in 2021, in a deal worth roughly $6.5 billion.

The AI firm has continued to strike major deals with retailers, including making a deal with Asda in May 2022 to revamp its order management systems.

Maciej Kaniowski, chief operating officer, Avon International, said: “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. After a thorough selection process, Blue Yonder was chosen for its comprehensive solutions and innovative capabilities that met all of Avon International’s needs.”

He added: “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.”

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