In 2020, Natura and Avon announced their merger into a single company to create Natura&CO, aiming to unify and strengthen the business of each brand with portfolios and logistical infrastructure, seeking to enhance the experience for both representatives and end customers.
According to Pablo Suzuri, Logistics and Distribution Manager at Natura&CO, despite the merger occurring during the pandemic, the company continued working on integrating the logistical and operational aspects, resulting in the consolidation of Suma de Bellezas. This integration of both brands’ portfolios began gradually last month, allowing representatives to sell both brands.
While Natura operates a distribution center (cedis) in the State of Mexico, the largest in Latin America outside its home country, Avon has a cedis and a production plant in Celaya, Guanajuato, where Avon products and some Natura products are manufactured.
Additionally, Avon collaborates with 16 local transportation providers, as well as DHL and Estafeta, which were already working with Natura, to deliver orders to 98% of the country’s postal codes.
With the implementation of cross-selling, the company indicated that product logistics will be consolidated into a single shipment. Consultants will continue to place their orders through the brand’s platform they represent. However, only the products featured in the catalog will be combined in the distribution centers, meaning products from both brands will be combined.
“We are leveraging the synergy we already have with the manufacturing plant in Celaya, which produces for both brands. So, we have an established circuit from the plant to the distribution center in Cuautitlán Izcalli. Today, what we will take advantage of is the return with Natura products for Avon, thus making the replenishment circuit more efficient,” said Pablo Suzuri in an interview with T21.
He also added that the logistical challenges of this new strategy revolve around integrating demand at the plant, balancing inventory, and correctly identifying products without compromising the productivity they already have.
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