Avon to restructure US distribution

Published: 15-Jan-2007

Avon today announced plans to restructure its US distribution operations, with the aim of enhancing service to its representatives, improving operating efficiencies through new technologies, and achieving other cost savings that can be reinvested in business growth.


Avon today announced plans to restructure its US distribution operations, with the aim of enhancing service to its representatives, improving operating efficiencies through new technologies, and achieving other cost savings that can be reinvested in business growth.

The initiative, which is part of the company's previously announced multi-year turnaround plan, includes the building of a state-of-the-art distribution center in the Midwest that will open in 2009. The facility will employ in the range of 500 people when fully operational and will have capacity to ship 50% of US sales volume.

Avon also said that it will phase-out its current distribution branches in Newark, Delaware, and Glenview, Illinois, with the closures expected to be completed by mid-2009 and mid-2010, respectively, with a combined loss of approximately 620 positions.

Avon said that it expects to invest approximately $150 million in capital expenditures relating to the new distribution center and for technology and equipment upgrades in other branches. The company plans to upgrade and modernize its Atlanta-based distribution center, and is evaluating options for investing in a new warehouse management system for the Pasadena site.

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